PUMA Hit With €357 Million Loss as It Completes a Full Year Strategic Reset

PUMA has finished a deep strategic reset in 2025, absorbing a sharp sales decline and a swing to losses as it cleans up inventories and distribution. Additionally, the company is designating 2026 as a transition year before targeting renewed growth from 2027 onward.

Reset Year and 2025 Results

For the full year 2025, PUMA’s sales fell 8.1% currency adjusted to €7,296.2 million, a 13.1% reported decline. This was driven mainly by deliberate distribution clean up, reduced promotions, and weaker wholesale demand across regions. Meanwhile, wholesale revenue dropped 12.8% (ca) to €4,935.0 million, while Direct to Consumer grew 3.4% (ca) to €2,361.1 million. As a result, DTC’s share rose to 32.4% of sales.

Gross margin for the year slipped 260 basis points to 45.0%, pressured by elevated wholesale promotions, inventory write downs linked to takebacks, and negative currency effects. Furthermore, adjusted EBIT (excluding one time items) fell to €‑165.6 million; after €191.6 million of one off costs tied to a cost efficiency program and goodwill impairments, reported EBIT came in at €‑357.2 million. Earnings per share from continuing operations reached €‑4.37.

Q4 2025 Reports Heavy Clean Up and Deeper Loss

In Q4 2025, currency adjusted sales declined 20.7% to €1,564.9 million, with reported sales down 27.2% as PUMA pulled back from mass merchants. The company also cleared excess stock and cut lower quality wholesale distribution. Wholesale revenue dropped 27.7% (ca) to €921.4 million, while DTC fell 8.0% (ca) to €643.5 million. Even so, DTC’s share of quarterly sales rose to 41.1%.

Gross margin in the quarter slid 750 basis points to 40.2%, mainly due to aggressive wholesale promotions, inventory reserves, and FX. This was partially offset by a better DTC mix and lower freight and sourcing costs. Adjusted EBIT fell to €‑228.8 million, and after €78.9 million of one time costs, reported EBIT was €‑307.7 million. This produced a loss from continuing operations of €‑335.0 million and Q4 EPS of €‑2.27.

Categories, Regions, and Inventory

Across 2025, Footwear revenue decreased 7.1% (ca) to €4,113.8 million, with broad declines partly offset by strength in Sportstyle Prime & Select and Performance Running. In particular, the Velocity Nitro 4 stood out. Apparel sales fell 9.7% (ca) to €2,328.5 million, with softness in Sportstyle and Teamsports tempered by growth in Training, Basketball, and Motorsports. Accessories dropped 8.5% (ca) to €853.9 million, weighed down by Golf.

Regionally, EMEA sales declined 6.9% (ca) to €3,143.2 million, Asia/Pacific slipped 7.4% (ca) to €1,594.7 million, and the Americas were down 10.0% (ca) to €2,558.2 million. This was largely due to North American distribution cuts. Inventories ended the year at €2,060.0 million, up 2.3% reported (about 10.7% ca), reflecting takebacks from wholesale partners. PUMA says its clean up is slightly ahead of plan and expects a normalized inventory level by end 2026.

Cash, Debt, and No Dividend

Free cash flow for 2025 was ‑€530.3 million, significantly lower than €464.3 million in 2024. This is mainly due to the operating loss and higher net working capital. CAPEX was €206.3 million, focused on logistics, digital infrastructure, DTC expansion, and longer-term competitiveness.

Cash and cash equivalents stood at €290.0 million, down 21.2% year on year. However, available credit lines rose to €2,562.8 million, leaving €1,202.2 million undrawn at year end.

2026: Transition Year and Strategic Focus

For 2026, PUMA guides for a currency adjusted sales decline in the low to mid single digit range, with particular softness expected in North America as it continues to streamline distribution. The company forecasts EBIT between €‑50 million and €‑150 million, including further one time effects linked to its cost efficiency program. Furthermore, PUMA plans CAPEX of around €200 million focused on digital, DTC, and key strategic initiatives.

CEO at Puma, Arthur Hoeld, said, “2025 was a reset year for us. We want to establish PUMA as a Top-3 sports brand globally, return to above-industry growth and generate healthy profits in the medium term. It is crucial to make the PUMA brand less commercial and ensure we once again excite our consumers with attractive products, compelling storytelling and distribution in the right channels. I’m satisfied with the progress we have made so far. We cleaned up most of our distribution by reducing promotions in our own channels and cutting our exposure to those wholesale channels that damage our brand’s desirability. To better position our product icons and our performance offering and tell more engaging product stories, we created the right structures inside our company. We also addressed operational inefficiencies and further optimized our cost base. I want to thank our employees for their commitment to this reset. We are confident that by implementing the winning principles of one global sports brand, we will capture PUMA’s significant potential.”