Puma has reported another challenging quarter as part of its ongoing corporate reset, with sales falling 5 percent to 1.78 billion euros in the three months ending September 30. On a currency-adjusted basis, this figure represents a decline of 6.3 percent. The disappointing performance has led the German sportswear brand to revise downward its low-end forecast for full-year operating profit.
Chief Executive Officer Arthur Hoeld, who assumed leadership in July 2025 with a mandate to clean up inventory and curb over-discounting at mass merchants, stated that the third-quarter results aligned with expectations. He emphasized that the company is using this transition year to lay the foundation for future growth, aiming for a return to expansion in 2027. The sales decline was attributed to reset measures initiated during the same period last year, alongside the impact of volatile geopolitical situations on consumer sentiment.
Regional performance varied significantly across the globe. Sales in Puma's largest market, Europe plus the Middle East and Africa, dropped sharply by 12 percent to 801.2 million euros. In the Americas, revenue slid 2 percent to 580.4 million euros, with North America experiencing a steeper decline than Latin America, where the brand managed to maintain growth. Conversely, the Asia Pacific region emerged as a bright spot, posting a 7.5 percent increase to reach 394.6 million euros. This growth was driven by momentum in low-profile footwear from the Speedcat family and the brand's partnership with the fitness trend Hyrox.
Despite the regional success in Asia, momentum in China has been slightly slower following the finalization of a deal this month that made Anta Sports Puma's largest shareholder. As the third-largest sportswear firm in China, Anta favors a direct-to-consumer model, which has reportedly made local partners and distributors more cautious since the announcement. Hoeld described the partnership as a strong vote of confidence in the company's strategy and management team.
In terms of product categories, footwear sales decreased by 3.3 percent to 1.01 billion euros due to muted performance in certain core styles, though this was partially offset by growing demand for low-profile looks and new running shoes. Apparel sales slumped significantly by 8.9 percent, while accessories saw a decline of 2.1 percent. The brand's operating profit, or EBIT, also turned negative, shifting from a profit of 16.2 million euros in the same period last year to a loss of 11.4 million euros this quarter. The company attributed this shift to one-off effects related to its cost-efficiency program.
The third-quarter results broadly met market expectations, with analysts having forecast sales of 1.76 billion euros and an EBIT around minus 10 million euros. However, based on these outcomes, Puma has adjusted its full-year outlook. While the company still anticipates sales to decline by low- to mid-single digits, it now forecasts a full-year EBIT between minus 80 million and minus 130 million euros, a revision from its previous guidance of minus 50 million to minus 150 million euros.
Sources: WWD.