German sporting goods retailer Puma SE is implementing a new distribution model for certain product categories in North America as part of its ongoing reform efforts.
On Tuesday, the company announced an expansion of its long-standing licensing partnership with the US textile manufacturer United Legwear Company LLC. As part of the agreement, United Legwear will also take over the distribution of Puma products from the socks and underwear as well as children’s clothing and accessories categories in the USA and Canada.
United Legwear has long been Puma’s production and logistics partner for the relevant product groups in North America. However, a joint venture between the two companies called Puma United, in which the German sporting goods manufacturer held a majority stake of 51 percent, had previously taken over sales in the region.
As part of the transition to a full licensing model, which took place on November 1st, Puma will now classify the previous joint venture as a discontinued operation in its financial reporting. According to the company, Puma United achieved sales of 427.9 million euros (368.9 million euros) in the 2024 financial year. The company’s earnings attributable to non-controlling interests therefore amounted to $60.7 million.
With the measure now announced, Puma says it is “aiming for a leaner, more efficient business model while at the same time maintaining its strong brand presence in these categories with its long-standing partner.” The “transition to a licensing model” also corresponds to “common practice in North America, where the production and sale of socks and underwear are usually licensed to third parties.” In the background is the company’s desire to “reduce the complexity of its business model in North America and focus more on its core business in the region.”
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