Puma Reports Sales Decline but Earnings Growth in Transition Year

German sportswear manufacturer Puma has navigated a challenging start to 2026, reporting a decrease in revenue while simultaneously achieving an increase in earnings. This mixed financial performance reflects the company's ongoing strategic adjustments aimed at optimizing operations and preparing for a more robust future, particularly with the upcoming FIFA World Cup in North America on the horizon.

According to CEO Arthur Hoeld, the company has made solid operational progress in what is termed a 'transition year.' Key achievements include a faster-than-planned reduction of inventory levels and a focused effort on refining the product portfolio and eliminating operational inefficiencies. These measures, while impacting top-line sales, are designed to improve profitability and streamline the business model.

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Operatively, we have started our transition year 2026 solidly.

Puma's performance was bolstered by the success of athletes sponsored by the brand, who secured numerous medals at the World Athletics Indoor Championships and set national records at the Berlin Half Marathon. Furthermore, new product launches, such as a shoe developed for the Hyrox fitness trend, have been well-received in the market. The company is particularly optimistic about the revenue potential from jersey sales during the World Cup, highlighting its role in outfitting teams including Portugal, led by superstar Cristiano Ronaldo.

However, the company faces headwinds, notably the strong Euro and weaker demand in the Europe-Arabia-Africa economic region. Currency fluctuations and a subdued market impacted revenues, which fell by 6.3 percent to approximately 1.87 billion Euros. Despite these challenges, Puma managed to improve its earnings, driven by the release of provisions for inventory, reduced freight costs, and a stronger performance in its own retail sector. The adjusted operating profit (EBIT) rose by five percent to 64.4 million Euros, with the group's net income significantly increasing from 0.5 million to 26.5 million Euros. The company also announced a change in its financial leadership, with Mark Langer set to take over as CFO.

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We were able to reduce our inventories faster than planned, reduced our product portfolio and operational inefficiencies.