Puma ETR: PUM reported first-quarter 2026 results that management described as “in line with our expectations,” while reiterating its full-year outlook and detailing ongoing reset and right-sizing actions across the business.
Leadership transition highlighted at the start of the call
Chief Executive Officer Arthur Hoeld opened the call by noting a leadership change in the finance function. Hoeld said Chief Financial Officer Markus Neubrand “has decided with the supervisory board to step down from his office as of today, end of the month, and will remain in the company until end of September.” Hoeld thanked Neubrand for his support during the CEO’s onboarding and for helping guide the company through what he called “not the easiest of times.”
Hoeld also referenced the “arrival of a new CEO,” identifying Mark Langer as starting “early next month,” and said he looked forward to welcoming him. (The remarks referred to Langer’s arrival in connection with the CFO transition.)
Sales down 1% currency-adjusted as clearance offset reset measures
For Q1 2026, Neubrand said sales declined 1% on a currency-adjusted basis, which he called “a notable improvement from the previous two quarters.” He attributed the quarterly performance to opposing forces: reset measures weighing on revenue and inventory clearance supporting sales through selected wholesale partners and Puma’s own factory outlets.
“Without the negative impact from reset initiatives and the positive effect from clearance, we recorded an underlying decline in sales in the low to mid-single digits,” Neubrand said, adding that the impact of both clearance and reset activities is expected to continue but “further decrease throughout the year.”
By channel, Neubrand said wholesale revenue declined 2.8%, “mainly due to a lower demand from wholesale partners in EMEA.” Direct-to-consumer (DTC) sales grew 3.8%, driven by a 5.7% increase in owned and operated retail store sales that “mainly resulted from inventory clearance in our outlets.” E-commerce grew 0.6%, which Neubrand said was supported by “new APAC marketplaces and reduced promotional activity.” DTC share rose to 28.3% from 27.5% a year earlier.
Regional and product trends: EMEA weak, Americas and APAC grew
Regionally, Neubrand said EMEA sales fell around 10% currency-adjusted, driven by “weaker underlying demand” and the company’s “reduction of undesirable wholesale business.” He added that the Middle East, which he said accounts for less than 2% of sales, was impacted by “the ongoing regional conflict.”
The Americas grew around 6% currency-adjusted, with double-digit growth in Latin America and 2% growth in North America. Neubrand said inventory clearance supported sales in both regions, particularly in the U.S., where it helped offset declines tied to reduced mass-merchant business. Asia-Pacific rose around 8% currency-adjusted, driven by strong DTC performance across stores and e-commerce.
On product divisions, Neubrand said footwear sales declined 2.3%, reflecting continued challenges in some categories, though running and training showed “strong momentum” supported by Nitro styles and the “rapid expansion of HYROX related products.” Apparel sales increased 0.9%, driven by training and golf. He said football delivered “a solid performance,” supported by demand for federation kits ahead of the FIFA World Cup. Accessories rose 0.3%, mainly supported by golf.
Hoeld and Neubrand also pointed to strength in “Low Profile” styles, including the Speedcat family. In the Q&A, Hoeld said the trend was gaining traction across Asia—calling out Korea, Japan, and Southeast Asia—and also in North America among more style-focused consumers, “with some retailers” where Puma is “the number 2 brand from a sellout perspective.” Hoeld added that last year’s reset actions have helped by right-sizing volumes in the market, which he said is “extending and prolonging the life cycle of these silhouettes.”
Profitability improved in Q1, helped by margin and OpEx reductions
Neubrand said reported sales declined 6.3% due to foreign exchange headwinds, especially from the U.S. dollar, Turkish lira, and Argentine peso. Gross margin improved 60 basis points to 47.7%, supported by several factors, including the “reversal of inventory reserves recorded in the second half of 2025,” lower freight costs versus the prior-year quarter, and a favorable channel mix with a higher DTC share. He said these were partly offset by product and regional mix as well as currency effects.
Operating expenses excluding one-time effects decreased 5.5% to EUR 848 million, driven by savings from the cost-efficiency program and lower marketing expenses. Neubrand emphasized the marketing decline was driven by phasing effects and “not a structural reduction,” saying the company continues to invest in brand and growth opportunities.
Adjusted EBIT increased to about EUR 64 million, up 5% year over year. One-time effects fell year over year to EUR 12.6 million, “mainly related to personal expenses connected to the cost efficiency program.” Reported EBIT came in at around EUR 52 million, up almost 20%.
Neubrand said financial results improved to about negative EUR 60 million, citing favorable currency movements—particularly the U.S. dollar and Mexican peso—that more than offset a slight increase in interest expenses. Profit from continued operations rose to EUR 26.5 million, which he called a significant improvement versus Q1 2025.
Inventory cleanup, cost program progress, and outlook reiterated
On working capital, Neubrand said inventories fell about 9% to EUR 1.9 billion, supported by lower purchasing volumes and clearance activities. Working capital declined nearly 10% year over year to EUR 1.8 billion, which he said reflected “continued progress on inventory cleanup and disciplined purchasing.” Free cash flow was negative EUR 201 million at the end of Q1, which Neubrand said is typical seasonality, though it improved from the prior year due to working-capital management, higher EBIT, and lower CapEx. He reiterated that the company expects free cash flow to be positive in 2026.
Net debt increased seasonally to EUR 1.3 billion versus about EUR 1.0 billion a year earlier. Neubrand said cash was EUR 326 million, up about 15%, and Puma had about EUR 800 million in unutilized credit lines, for total headroom of around EUR 1.1 billion. With net debt elevated, he said deleveraging is “a clear priority.”
Hoeld also outlined ongoing right-sizing and operating model initiatives, including efforts to elevate distribution quality in North America and a planned “steep double-digit decline” in U.S. mass-merchant business through year-end. He said the company has made progress on wholesale overstock reduction, noting a “mid double-digit decline” in inventory levels at selected wholesalers in North America. Hoeld said Puma has reduced purchase orders, with actions “fully implemented already for before winter 2026 season,” and has workstreams focused on account receivables and cost base management.
On the cost-efficiency program and corporate reductions, Hoeld said Puma is targeting a 20% reduction of corporate positions from the beginning of 2025 to the end of 2026. He said 500 positions were reduced in the first half of 2025 and a further 900 positions were identified for reduction through the end of 2026. As of the end of Q1, he said 450 roles had been executed and that, of the remaining 450, “80% were already identified and communicated,” with 20% identified and in various stages of local processes.
Hoeld also said Puma has reduced range complexity, describing a “significant mid-double digit” reduction in range size, and expects a “more significant global footprint” in mandatory assortment while still offering locally relevant products through regional creation centers.
Looking ahead, Hoeld reiterated the full-year 2026 outlook, while noting it “does not reflect potential implications” from the Middle East conflict or U.S. Supreme Court decisions on U.S. tariffs. He said Puma expects a currency-adjusted sales decline in the low to mid-single digits for 2026 and expects the second half to be stronger than the first half. He added that Q2 sales growth is anticipated to be “clearly below” Q1.
Hoeld said the company anticipates wholesale to decline while DTC continues to grow, expects a “substantial improvement” in gross margin, and said OpEx is not expected to materially decline in absolute terms due to continued investment in DTC channels. He reiterated an EBIT forecast range of negative EUR 50 million to negative EUR 150 million, with one-off effects expected to be significantly lower than in 2025. CapEx is expected to be around EUR 200 million, focusing on digital infrastructure and DTC investments.
In Q&A, Neubrand said the reset impact—particularly the reduction of undesirable business—would be “more pronounced in the second quarter,” and he confirmed the full-year EBIT guidance range amid what he called ongoing macroeconomic and geopolitical uncertainties.
On product and pipeline, Hoeld said Puma is building on the Nitro platform across running and training and expects continued success from Low Profile styles into 2027. He added that work is ongoing in lifestyle, including efforts to make Suede “a more iconic proposition” in 2026 and 2027, while expanding the offer in lifestyle running as a future pillar.
Asked about the closing timing of Anta’s acquisition of a minority stake in Puma, Hoeld said there was “no news versus what we announced earlier in the year,” adding the company is “awaiting the closure of the transaction.”
About Puma ETR: PUM
PUMA SE, together with its subsidiaries, engages in the development and sale of athletic footwear, apparel, and accessories in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company provides sports lifestyle products for football, handball, rugby, cricket, volleyball, track and field, motorsports, golf, and basketball. It issues licenses to independent partners to design, develop, manufacture, and sell watches, glasses, safety shoes, workwear, and gaming accessories. The company sells its products under the PUMA and Cobra Golf brands through retail stores, factory outlets, and online stores.
Featured Stories
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Puma, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Puma wasn't on the list.
While Puma currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Unlock the timeless value of gold with our exclusive 2026 Gold Forecasting Report. Explore why gold remains the ultimate investment for safeguarding wealth against inflation, economic shifts, and global uncertainties. Whether you're planning for future generations or seeking a reliable asset in turbulent times, this report is your essential guide to making informed decisions.
Get This Free Report
