The German sporting goods provider Puma SE presented weak figures for the final quarter and the entire 2025 financial year on Thursday morning. The strategic “reset” measures introduced over the course of the year had a significant impact on sales and earnings. For 2026, the group is expecting another transition year with declining revenues.
According to the available figures, sales in the fourth quarter amounted to 1.56 billion euros. This corresponded to a decrease of 27.2 percent compared to the same period last year. Adjusted for exchange rate changes, revenue fell by 20.7 percent. For the year as a whole, sales fell by 8.1 percent after adjusting for currency effects to 7.29 billion euros. The results therefore fell significantly short of the previous year’s figures.
Group earnings slide deep into the red
The drop in earnings was even more significant. The operating profit (EBIT) fell clearly into the red in the final quarter: the adjusted EBIT amounted to minus 228.8 million euros, after a positive value of 85.7 million euros in the same period of the previous year. Including one-off effects, reported EBIT was minus 307.7 million euros.
Even on a full-year basis, the company was unable to match the previous year’s results. The adjusted EBIT fell from 548.7 million euros to minus 165.6 million euros and the consolidated result, which had been 281.6 million euros in the previous year, collapsed to minus 645.5 million euros. The company explained that the decline was primarily due to the strategic reset measures and one-off effects amounting to 191.6 million euros.
Direct-to-consumer business is a heavy burden
Puma was particularly burdened in the 2025 financial year by the strategic streamlining of the wholesale business, product returns and a reduced discount policy in the direct-to-consumer business (DTC).
Quarterly sales in wholesale fell by 27.7 percent after adjusting for currency effects to 921.4 million euros, while the DTC business recorded a decline of 8.0 percent to 643.5 million euros. Regionally, Puma recorded double-digit declines in all core markets. In America, revenue fell by 22.2 percent after adjusting for currency effects, in EMEA by 24.3 percent and in Asia/Pacific by 12.6 percent. The group attributes the decline in America to a targeted reduction in business with large-scale retailers in the US market, and that in EMEA to a weaker wholesale business as a result of the targeted reduction of sales in channels that are unfavorable in terms of brand strategy and to product returns.
Looking at the year as a whole, the wholesale business fell by 12.8 percent, adjusted for currency effects, to 4.94 billion euros. The DTC business, in turn, grew by 3.4 percent after adjusting for currency effects and was able to increase its share of group sales to 32.4 percent, after 28.9 percent in the previous year.
Declines in all product areas
Puma also had to accept compromises on the product level. Within the product areas, sales of shoes fell by 25.4 percent in the fourth quarter, adjusted for currency effects, to 820.9 million euros, due to declines in most categories. However, contrary to the general trend, the training category recorded healthy growth. There was also a differentiated picture in the running area. While overall sales fell due to a deliberate reduction in sales in channels that were not strategically conducive to the brand, performance running increased significantly, thanks in part to the success of the Velocity Nitro 4 running shoe.
Sales in the textiles sector fell by 13.7 percent on a currency-adjusted basis to 568.8 million euros, although growth in the training category, particularly through continued strong demand for HYROX products, was able to cushion some of the decline. Sales of accessories fell by 18.2 percent after adjusting for currency effects to 175.3 million euros, which was mainly due to the weak development in the golf category.
All product areas also recorded declines over the year. Sales in the Shoes segment fell by 7.1 percent on a currency-adjusted basis to 4.11 billion euros, partially offset by growth in the Sportstyle Prime & Select categories, driven in particular by the Speedcat shoe model, as well as increased demand in the running category. In the textiles sector, sales fell by 9.7 percent on a currency-adjusted basis to 2.33 billion euros, primarily impacted by weaker development in the sportstyle and team sports categories, while training, basketball and motorsports were able to partially counteract this. The accessories product area recorded a currency-adjusted decline in sales of 8.5 percent to 853.9 million euros, mainly as a result of declining sales in the golf category.
A return to growth is targeted from 2027
CEO Arthur Hoeld drew a sober conclusion in view of the results. Sales have been cleaned up, discounts in our own channels have been reduced and the presence in wholesale channels that are harmful to the brand strategy has been reduced. “I’m happy with the progress we’ve made so far,” said Hoeld.
At the same time, the CEO announced that 2026 would be another year of transition. Puma continues to optimize its distribution channels and reduce inventories, including through disciplined management of procurement orders and targeted product sales. The cost efficiency program initiated last year will be continued – this includes a leaner organizational structure, a reduced product range and the completion of the reduction of around 1,400 administrative positions that has been ongoing since the beginning of 2025. The brand and product strategy focuses on four focus categories: football, running, training and Sportstyle Prime & Select.
For the current financial year, Puma expects a currency-adjusted decline in sales in the low to mid-single-digit percentage range given ongoing geopolitical and macroeconomic uncertainties. The operating result (EBIT) is expected to be in a range of minus 50 to minus 150 million euros, including one-off effects in connection with the cost efficiency program.
From 2027 onwards, the measures introduced are intended to enable sustainable growth and establish Puma among the three leading sports brands worldwide in the long term.
