Six months into its fiscal year, the German sportswear company is making measurable progress on profitability and inventory reduction. However, persistent consumer caution across Europe and the Americas means a full recovery is not expected before 2027. Running, Lifestyle and direct-to-consumer are emerging as the pillars of Puma’s long-term repositioning.
Although revenue remained under pressure in the second quarter, Puma made progress on profitability. Currency-adjusted revenue fell by 9.4 percent to €1.69 billion. At the same time, Ebit improved to a loss of €53.1 million from a loss of €109.1 million in the prior year, while the net loss also decreased significantly. The gross margin rose by 180 basis points to 48.0 percent. Free cash flow increased to €328.8 million, compared to €94.9 million in the prior year.
Consumer caution as a headwind
Management cites ongoing consumer caution as a major headwind. This is affecting the German sporting goods manufacturer more severely than had been anticipated at the beginning of the year. In particular, weaker demand in Europe and the U.S., the conflict in the Middle East, and slowing momentum in Latin America are weighing on earnings. “We continue to see more muted consumer demand across markets,” said CFO Mark Langer.
The ongoing weakness in demand has now been factored into the outlook for the full year. Puma expects a currency-adjusted decline in revenue in the low to mid-single-digit percentage range, as well as Ebit between minus €50 million and minus €150 million. The company anticipates that the negative effects of the Middle East conflict and the positive effects of lower U.S. tariffs and duty refunds will largely offset each other in terms of full-year profitability.
| PUMA — Income / P&L | |||
| Q2, ended June 30 (€ millions) | |||
| Q2 2026 | Q2 2025 | Change | |
| Sales | 1,690.6 | 1,871.3 | -9.7% |
| Cost of sales | -878.3 | -1,006.9 | -12.8% |
| Gross profit | 812.2 | 864.4 | -6.0% |
| Royalty and commission income | 18.4 | 20.2 | -8.6% |
| Other operating income and expenses (adjusted) | -872.6 | -909.0 | -4.0% |
| Adjusted operating result (adjusted EBIT) | -41.9 | -24.5 | 71.4% |
| One-time effects | -11.2 | -84.6 | -86.8% |
| Operating result (EBIT) | -53.1 | -109.1 | -51.3% |
| Financial result | -20.3 | -43.7 | -53.6% |
| Loss before taxes (EBT) | -73.4 | -152.8 | -52.0% |
| Income taxes | 0.6 | -94.3 | – |
| Loss from continuing operations | -72.8 | -247.1 | -70.6% |
| Profit from discontinued operations, net of tax | 0.0 | 8.0 | -100.0% |
| Consolidated net income attributable to non-controlling interests | 0.0 | -7.9 | -100.0% |
| Consolidated net income | -72.8 | -247.0 | -70.5% |
| Earnings per share (€) | -0.49 | -1.67 | -70.5% |
| Earnings per share, diluted (€) | -0.49 | -1.67 | -70.5% |
Source: PUMA SE Q2 2026 earnings release, July 31 2026. All figures in € millions unless stated.
Running remains the bright spot
Running remains the key source of hope in Q2. CEO Arthur Hoeld once again described Running and Training as the company’s strongest growth drivers. Puma is expanding its product lineup with additional Nitro models, deepening its partnership with Hyrox, and introducing its cushioning technology to soccer for the first time with the Ultra 7. Further innovations are expected to follow in the second half of the year.
“Running and Training are not only growth categories; they also create a halo effect for our lifestyle business,” the CEO said during the earnings call. This indicates that management now attributes an even greater strategic role to Running than it did at the beginning of the year.
Speedcat attracts new female customers
For Puma, Speedcat is increasingly becoming more than just a successful sneaker. According to management, the Speedcat, Speedcat Ballet, and Speedcat Wedge are now available in Asia, Europe, and North America. Above all, however, the low-profile line is drawing in new customer groups. “We’re attracting female consumers who weren’t buying Puma before,” said Hoeld. Retailers have subsequently expanded their product ranges, while Puma is already preparing additional models as well as a relaunch of the Suede line.
China is stabilizing only slowly
In China, however, there are still no signs of a genuine turnaround. On a currency-adjusted basis, sales rose slightly by 0.9 percent in the second quarter, driven by direct-to-consumer business and e-commerce. Wholesale remained weak. In response to questions during the earnings call regarding the Anta investment, management emphasized that there are currently no operational impacts. Although some Chinese retail partners were acting more cautiously, the collaboration continues as before. “There are no operational impacts on our China business that we can report,” Hoeld replied.
DTC is gaining importance
Puma is also increasingly focusing on direct-to-consumer sales in other regions. The business grew slightly on a currency-adjusted basis in the second quarter (+0.4%) and accounted for a higher share of consolidated revenue at 35.2 percent. According to Hoeld, the e-commerce business continued to grow despite fewer discount promotions. New online marketplaces in Asia and more targeted digital marketing contributed to this growth. “We are very pleased with the progress we are making from an e-commerce perspective.” The goal is not maximum revenue growth, but a more profitable business with higher-quality distribution and more targeted promotions.
Wholesale is being further reduced
Conversely, the sporting goods manufacturer is consciously accepting further losses in the wholesale segment. Wholesale revenue declined by 14 percent on a currency-adjusted basis. Management emphasized repeatedly that this is part of the strategy. The company is strategically divesting itself of less profitable retail partners and reducing its presence with large-format retailers in order to position the brand more strongly in the long term. In doing so, Puma is gradually replacing its wholesale business with higher-value DTC business.
Inventory reduction is proceeding
Inventory levels provide further evidence of the progress of the restructuring. While management had identified inventory reduction as a key goal after the first quarter, the second quarter now shows initial success. Puma reduced its inventory by 15.3 percent at the end of the second quarter. The reduction is proceeding according to plan, as was stated several times during the earnings call.
This also benefited free cash flow, which increased significantly, primarily thanks to improved working capital management and lower capital expenditures. Inventories are expected to return to normal levels by the end of 2026 – an important prerequisite for reducing discount promotions and steering the brand more strongly toward full-price sales again.
No boost from the World Cup
Puma does not expect any additional momentum from the FIFA World Cup 2026. When asked, Hoeld said the tournament has not made a significant commercial contribution so far. Instead, the company is focusing on a more broadly diversified soccer business. “We are building our soccer business based on a balanced portfolio across federations, clubs … and players to promote soccer globally.” While soccer has recently provided a positive boost for competitors, this strategy is intended to strengthen the business in the long term. Following last year’s record loss, the measures implemented are now showing initial signs of success. Sustained growth, however, will likely depend primarily on a recovery in consumer demand in Europe and the Americas.
