Puma Q1 shows stability as management keeps cautious full-year outlook

Germany’s second global sportswear brand also maintains a cautious outlook for 2026. Puma management views the current year as a transition year, marked by distribution streamlining and structural adjustments. Nevertheless, the first quarter presents a solid operating picture: Revenue declined slightly by 1 percent on a currency-adjusted basis to €1.86 billion (in euros: -6.3%).

Ebit rose to €51.9 million with a margin of 2.8 percent, with an adjusted figure of approximately €64.4 million and one-time effects of €-12.6 million weighing on the result. At the same time, the gross margin improved by 60 basis points to 47.7 percent, and free cash flow also performed significantly better than in the previous year at €-201 million (€-737.6m). This shows that cost control, inventory reduction, and initial efficiency measures are taking effect faster than expected.

Contradiction: Strong start and cautious outlook

Nevertheless, Puma continues to expect a revenue decline in the low to mid-single-digit percentage range for 2026, as well as a negative Ebit of €50 million to €150 million. In summary: The start of the year was better than the 2026 forecast suggests, but not representative of the full year.

And upon closer inspection, a clear contradiction also emerges between the solid start to the year and the outlook. Q1 shows operational stabilization at the store level, while at the same time it becomes clear that the reset is not yet complete. The impact of restructuring and distribution adjustments is likely to become even more pronounced as the year progresses.

Europe is dragging down performance, while China is holding its own

Operational performance in the first quarter was already significantly shaped by structural effects. The wholesale business remained weak and declined on a currency-adjusted basis, weighed down by significantly lower demand in the EMEA region as well as the ongoing streamlining of unprofitable distribution channels. At the same time, the direct-to-consumer segment proved more resilient and grew on a currency-adjusted basis, further increasing its share of total revenue.

Another key factor was the targeted reduction of inventory, which was driven both in wholesale and through our own outlet channels. Regionally, the picture is mixed: While Europe is clearly under pressure, markets in the Americas and, in particular, Asia/Pacific – led by China – continue to show growth.

Performance gains momentum, lifestyle slows down

At the product level, the picture is clearly differentiated. The main growth drivers were the Running and Training categories, which benefited from strong demand for performance products such as the Nitro line and the dynamically growing Hyrox segment. The soccer business also remained stable to positive, supported by high demand for national team jerseys in the run-up to the upcoming 2026 FIFA World Cup. The golf division also grew. In contrast, the lifestyle-oriented segments remained weaker: core, sportstyle, and kids were down on the previous year and weighed on overall performance.

Key challenge in the reset year

The heterogeneity across markets and product categories thus remains a key challenge for Puma – and shapes its strategic direction and reset course. Following a 2025 marked by massive losses, margin pressure, and a profound restructuring of the wholesale business, the company is now clearly focusing on quality rather than volume. Unprofitable distribution channels – particularly in the North American mass market – are being scaled back, while direct-to-consumer and brand positioning are being strengthened. 2026 is seen as a transition year with continued weak profitability, before profitable growth is expected to be achieved again starting in 2027.

On the right track: Puma among the top 3 

At the same time, Anta Sports’ entry with a stake of around 29 percent opens up optional strategic potential, particularly in the important Chinese market. This is expected to account for up to one-third of the business in the future. In the short term, however, the environment remains marked by uncertainties – such as U.S. tariffs, currency effects, and fragile demand. CEO Arthur Hoeld nevertheless emphasizes the long-term ambition: “We are on track to establish Puma as a top 3 global sports brand, to grow above the industry average again, and to achieve healthy profits in the medium term.”

In good company with Adidas and Nike

With this ambition, Puma is currently in good company: Nike and Adidas are also grappling with inventory reduction, a more challenging wholesale mix, and an overall demanding market environment. While Adidas has already visibly achieved its turnaround and is regaining momentum, Puma is gradually getting back on track. Nike, on the other hand, is showing initial progress – for example, in wholesale and in North America – but continues to be held back by weakness in China and a declining direct-to-consumer business. The bottom line is a clear ranking: Adidas in the lead, Puma catching up – and Nike still in the midst of a turnaround.