Puma Q3 Earnings Call Highlights

Key Points

• Q3 sales declined 6.3% on a currency-adjusted basis, but management said performance improved sequentially. Asia Pacific, e-commerce, running and training provided support, while Europe and North America remained weak.
• Reported EBIT was a EUR 11.4 million loss as stronger gross margins were outweighed by higher operating expenses. Puma generated EUR 92 million in free cash flow and reduced inventory by 24.3% year over year.
• Puma maintained its full-year sales outlook for a low- to mid-single-digit decline but narrowed its EBIT forecast to an EUR 80 million–EUR 130 million loss and cut planned capital expenditure to below EUR 150 million.

Puma ETR: PUM reported a currency-adjusted sales decline of 6.3% in the third quarter of 2026, though management said performance improved sequentially from the second quarter as the company continued its transition and reset measures.

Chief Executive Officer Arthur Hoeld said demand remained challenging in key markets including Europe and North America, while double-digit growth in Asia Pacific and e-commerce provided support. The company also cited growing momentum in running and training, with running delivering double-digit growth and training posting single-digit growth.

Reported EBIT was negative EUR 11.4 million for the quarter, improving from the prior quarter. Chief Financial Officer Mark Langer said a stronger gross margin was more than offset by a higher operating-expense ratio. Puma generated EUR 92 million in free cash flow during the quarter, aided by working-capital improvements.

Channel and Regional Performance

Wholesale sales declined 9.6%, reflecting the reduction of what Puma described as undesirable business, including prior mass-merchant business, as well as softer demand among wholesale partners. Direct-to-consumer sales increased 1.2%, led by 7.8% growth in e-commerce. Sales in owned and operated stores fell 2.3% amid lower traffic and weaker consumer demand.

The direct-to-consumer share of sales rose to 33.1% from 30.5% a year earlier.

• EMEA: Sales declined 11.5% on a currency-adjusted basis, reflecting reduced undesirable business and subdued European demand. Puma said ongoing conflict in the Middle East had spillover effects on demand. Direct-to-consumer sales in the region grew, supported by HYROX and football products.
• Americas: Sales fell 8.1%, including a 17.2% decline in North America due to weaker consumer demand and lower mass-merchant wholesale business. Latin America grew 1.4%, helped by resilient demand in key markets and a partial recovery in Mexico following operational challenges in the prior quarter.
• Asia Pacific: Sales increased 10%. Greater China grew 3.5%, driven by double-digit direct-to-consumer growth and marketplace expansion, though wholesale partners became more cautious after ANTA Sports announced plans to acquire a stake in Puma. Other Asia-Pacific markets grew 13%, supported by wholesale performance, low-profile footwear trends and HYROX.

By product division, footwear sales declined 5.1%, with weaker results in core, football and selected Sportstyle franchises partly offset by low-profile styles and running. Apparel sales fell 9.4%, primarily due to softer core and kids demand, while football, training and motorsport grew. Accessories sales declined 3.2%, mainly because of lower golf sales.

Margins, Costs and Cash Flow

Gross profit margin increased about 420 basis points to 49.5%. Langer said the improvement included a EUR 29.8 million tariff refund effect, contributing about 170 basis points. Other contributors included lower sourcing prices, a higher direct-to-consumer mix, favorable currency effects and lower freight expenses. Negative product mix effects partially offset those gains.

Operating expenses, excluding one-time effects, increased 6.7% to EUR 900 million. Puma attributed the increase to its expanding direct-to-consumer business, higher marketing spending, general and administrative expenses, information-technology investments recognized as operating expenses rather than capital expenditures, and foreign-exchange effects.

The company said savings from its cost-efficiency program partly offset the increase, but it continues to reinvest savings into the brand, direct-to-consumer operations and strategic priorities. The operating-expense ratio rose to 50.7% from 41.1% a year earlier.

Inventory declined 24.3% year over year to EUR 1.6 billion, while working capital fell 24.4% to about EUR 1.4 billion. Puma said it remained on track to reach more normalized inventory levels by year-end. Net debt stood at EUR 1.1 billion, down EUR 127 million from a year earlier, while cash totaled EUR 353 million. The company also reported EUR 827 million of unused credit lines.

After the quarter ended, Puma refinanced EUR 100 million of its EUR 350 million bridge loan through a bilateral loan with DBS and said further refinancing of the remaining bridge loan was underway.

Outlook and Strategic Priorities

Puma maintained its full-year 2026 expectation for a currency-adjusted sales decline in the low- to mid-single-digit percentage range. Management expects sales performance to improve further in the fourth quarter compared with the third quarter.

The company narrowed its full-year EBIT outlook to a loss of between EUR 80 million and EUR 130 million, compared with its previous range of a EUR 50 million to EUR 150 million loss. Puma also reduced its capital-expenditure outlook to below EUR 150 million from around EUR 200 million, citing a more focused investment approach and the classification of certain IT investments as operating expenses.

Hoeld said running and training should remain the principal growth categories through year-end, particularly in Asian and Southeast Asian markets. He said Puma expects a gradual recovery rather than an immediate rebound as consumers and retailers remain cautious.

The company is also adjusting its football business, where Hoeld said the football-boot market faces pressure from inventories and promotions. Puma is working with key retail partners on what he described as a more streamlined go-to-market cadence, with more focused launches and marketing support.

Hoeld said ANTA Sports’ acquisition of a Puma stake had been completed, making ANTA Puma’s largest shareholder and a long-term strategic partner. Puma expects Dennis to become chairman of its supervisory board and Jeanne Huang to join as a supervisory board member.

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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