Puma ETR: PUM reported a currency-adjusted sales decline of 9.4% in the second quarter of 2026, as the sportswear company continued its transition program, reduced undesirable wholesale business and faced softer consumer demand in several markets.
CEO Arthur Hoeld said the quarter developed in line with the company’s commitments for 2026, which Puma has described as a transition year within a three-year transformation plan. The company maintained its full-year outlook despite macroeconomic and geopolitical uncertainty, including the effects of the Middle East conflict.
Sales decline reflects reset measures and demand pressures
CFO Mark Langer said reported sales fell 9.7%, with foreign exchange accounting for roughly 30 basis points of the decline. He attributed the currency-adjusted decrease primarily to Puma’s marketplace-reset actions, including reduced mass-merchant exposure, lower promotional activity in full-price stores and e-commerce, and weaker consumer demand.
Wholesale revenue declined 14%, reflecting the reduction of business that Puma considers undesirable, especially compared with the prior-year period’s higher mass-merchant sales. Direct-to-consumer sales rose 0.4%, including a 1.8% increase in e-commerce, supported by marketplace expansion in Asia-Pacific and Greater China. The direct-to-consumer share increased to more than 35% of sales, from 32% a year earlier.
- EMEA sales declined 12.9% on a currency-adjusted basis, affected by weaker wholesale performance, subdued European consumer demand and lower Middle East sales amid the conflict.
- Americas sales fell 15.4%, including a 16.7% decline in North America, where weaker demand and reduced mass-merchant business weighed on performance.
- Latin America sales decreased 13.8%, partly due to softer consumer conditions and a warehouse and ERP-system transition in Mexico that affected deliveries. Puma expects some of that business to shift into later quarters.
- Asia-Pacific sales increased 8.6%, led by a 12.5% gain in markets outside Greater China. Greater China rose 0.9%, supported by direct-to-consumer growth and the 618 shopping festival.
Langer said wholesale partners in China had become more cautious after Anta’s planned acquisition of a stake in Puma was announced. Hoeld said Puma has not taken active steps to reduce Chinese wholesale business, but some partners appear to be delaying store renovations and expansions as they anticipate a more direct-to-consumer-led model.
Running, training and low-profile footwear provide bright spots
By product division, footwear sales declined 11.7%, apparel fell 4.3%, and accessories dropped 12%. Footwear performance was held back by weaker core and kids categories, although low-profile styles continued to gain momentum. Running and training grew, supported by NITRO products and HYROX-related offerings, while football apparel benefited from FIFA World Cup jersey sales.
Hoeld highlighted Puma’s visibility at the World Cup, where 11 national teams wore the company’s products and Morocco and Switzerland reached the quarterfinals. He said Puma ranked third in unpaid online media mentions related to the tournament and reported strong sell-through for national team jerseys, led by Portugal. However, the company did not see a significant commercial top-line benefit from the event during the quarter.
The CEO also pointed to progress in running and training. Puma ranked as the No. 4 brand among the top 10% of London Marathon finishers, according to Hoeld, while its HYROX partnership helped it become the leading brand in elite 50 men’s and women’s races at the HYROX World Championships in Stockholm.
In Sportstyle, Puma said the Speedcat franchise, including Speedcat Ballet and Speedcat Wedge models, continued to perform well. Hoeld said the low-profile footwear trend is gaining traction globally and could continue into 2027. The company is also incubating established franchises such as the Suede, with support from Puma ambassador A$AP Rocky.
Margins and cash flow improve despite operating loss
Gross profit margin rose about 180 basis points to 48.0%. Langer said lower sourcing prices, a more favorable channel mix from the larger direct-to-consumer business, currency effects and EUR 11.5 million in tariff refunds supported the improvement. The tariff refunds contributed roughly 60 basis points to the gross-margin gain.
Adjusted EBIT, excluding one-time items, was negative EUR 41.9 million, reflecting the lower sales base despite the margin improvement. One-time effects totaled EUR 11.2 million, mainly related to personnel and consulting costs under Puma’s cost-efficiency program. Reported EBIT improved to negative EUR 53.1 million from negative EUR 109 million in the prior-year quarter, producing an EBIT margin of negative 3.1%.
Operating expenses excluding one-time effects declined 4% to EUR 872.6 million, aided by cost-efficiency measures and favorable currency movements. However, expenses declined less than revenue, lifting the adjusted operating-expense ratio to 51.6% from 48.6%.
Inventory declined 15.3% to EUR 1.8 billion, while working capital fell 17% to about EUR 1.5 billion. Puma generated EUR 329 million in free cash flow, supported by lower purchasing volumes, inventory clearance, improved working-capital management and lower capital expenditures. Net debt stood at EUR 1.1 billion, though it declined from the first quarter.
Full-year outlook maintained
Puma reaffirmed its 2026 outlook for a low- to mid-single-digit currency-adjusted sales decline and EBIT between negative EUR 50 million and negative EUR 150 million. The guidance now incorporates management’s assessment of the Middle East conflict and lower tariff rates and refunds following a U.S. Supreme Court decision dated Feb. 20, 2026.
The company expects the conflict to hurt sales and profitability, while tariff-related benefits in the mid-double-digit-million-euro range are expected to largely offset that impact on EBIT. Puma expects third-quarter sales to remain negative but improve sequentially from the second quarter, with another improvement expected in the fourth quarter.
Hoeld said Puma will complete its workforce-reduction program by the end of 2026. The plan includes 500 positions announced in the first half of 2025 and an additional 900 positions identified later that year. He said the company remains focused on cleaner distribution, stronger product franchises, improved profitability and rebuilding brand momentum for growth beyond 2026.
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.
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