Improving margins and cash flow suggest operational repair, but declining footwear, wholesale and regional sales show that Puma’s brand recovery remains unfinished.
Puma reported a 9.4% currency-adjusted decline in second-quarter sales to €1.69 billion, marginally ahead of market expectations but reflecting continued weak demand and the deliberate withdrawal from lower-quality distribution. The German sportswear group retained its 2026 outlook rather than raising guidance, sending its shares down as much as 7%.
Wholesale bears the reset
Wholesale revenue fell 14% to €1.09 billion as Puma reduced business with mass merchants, particularly in North America and Europe. Direct-to-consumer sales edged up 0.4% to €595.8 million, lifting DTC’s share of quarterly revenue from 32.1% to 35.2%. E-commerce advanced 1.8%, offsetting a 0.5% decline in company-operated stores.
Regionally, sales dropped 15.4% in the Americas and 12.9% in Europe, the Middle East and Africa. Asia-Pacific provided the main counterweight, growing 8.6% as low-profile footwear, including the Speedcat family, performed strongly. Greater China increased 0.9%.
Footwear remains the weak point
Footwear sales declined 11.7% to €935.6 million, with weakness in core and children’s products outweighing growth in running, training and low-profile styles. Apparel performed comparatively better, falling 4.3% to €552.1 million, supported by football jerseys linked to Puma’s 11 teams at the 2026 FIFA World Cup. Accessories decreased 12% to €202.8 million.
Margins improve as purchasing contracts
Gross margin rose 180 basis points to 48%, supported by lower sourcing costs, favourable channel mix and €11.5 million of recognised US tariff refunds. Puma’s operating loss narrowed to €53.1 million from €109.1 million a year earlier and beat analysts’ €68.7 million loss estimate.
Inventories fell 15.3% to €1.82 billion, while trade payables declined 20.8%, indicating materially lower purchasing volumes. Free cash flow rose to €328.8 million.
For suppliers, the figures point to cautious ordering, tighter vendor selection and uneven demand across categories. Puma expects full-year sales to fall by a low- to mid-single-digit percentage and an operating loss of €50–150 million. The next test is whether cleaner inventories and stronger Asia-Pacific demand translate into renewed orders and profitable growth from 2027.
