The new boss of the ailing sporting goods group Puma SE, Arthur Hoeld, has initiated a restructuring program after recent significant declines in sales and profits. The concentration on core sports, fewer products, the expansion of direct business with consumers and more targeted marketing are intended to get Adidas’ local rival back on track. The costs should also come down. This will also lead to further job cuts.
The share listed in the MDax, which had already suffered a lot over the course of the year so far, fell further. After a plus in the first few minutes of trading, the price quickly turned negative. Most recently, the paper fell by more than two percent to 20.14 euros. This means that the share is around 55 percent below the level at the end of 2024 and 80 percent below the record high of just over 115 euros from autumn 2021. After the price collapse, Puma is only worth around three billion euros on the stock exchange.
CEO Hoeld announces “strategic reset”
2025 will be a year of “strategic reset,” said Hoeld when presenting the third quarter figures, according to the announcement. Costs should be reduced in the short and medium term. Puma also wants to cut an additional 900 of the 7,000 administrative jobs by the end of 2026. So far this year, Puma has cut around 500 jobs. In addition, the product range is to be reduced and the number of new items introduced per season is to be reduced.
Puma wants to concentrate on the football, training and running categories as well as sports fashion. The direct-to-consumer business (own retail, e-commerce) is expected to grow more strongly, as Puma has so far been heavily influenced by wholesale.
Overall, Puma has become “too commercial”. This is reflected in lower brand desirability, lower sales quality and a product range that cannot establish itself on the market. CEO Hoeld sees 2026 as a year of transition. Puma will not return to a growth path until 2027.
Sales fell by 15 percent in the third quarter
Puma saw further declines in the third quarter. Sales fell by 15.3 percent to just under 2 billion euros. The gross profit margin, which received much attention from analysts, fell by 2.6 percentage points to 45.2 percent. Discounts in wholesale, higher freight costs and provisions due to the reduction of inventories had a negative impact. Earnings before interest and taxes (EBIT) therefore fell by a good 87 percent to 29.4 million euros. Puma put the one-off costs at around 10 million euros.
Inventories rose by 17.3 percent to 2.1 billion euros. According to the information, Puma has initiated the adjustment of inventories and expects the inventory level to normalize by the end of 2026.
The bottom line is that Puma posted a loss of 62.3 million euros, after a profit of 127.8 million euros in the previous year. The results were “within expectations,” said Hoeld. The group confirmed the forecast that was lowered in the summer. He continues to expect a currency-adjusted decline in sales in the low double-digit percentage range as well as a loss before interest and taxes (EBIT). In addition to the home-made problems, geopolitical and economic uncertainties as well as the effects of US tariffs are also likely to have a negative impact.