PUMA Reports Improved Profitability in First Quarter 2026 as Inventory Reduction Supports Transition Year Strategy

PUMA Reports Improved Profitability in First Quarter 2026 as Inventory Reduction Supports Transition Year Strategy

(IN BRIEF) PUMA reported a solid start to 2026 despite a slight decline in sales, with first-quarter revenue reaching €1.86 billion, down 1.0% on a currency-adjusted basis. The performance was supported by inventory clearance efforts, which also contributed to an improved gross profit margin of 47.7% and a 19.6% increase in EBIT to €51.9 million. The company made strong progress in reducing inventory levels and improving operational efficiency, while also expanding its direct-to-consumer business. Regional performance was mixed, with growth in the Americas and Asia-Pacific offset by declines in EMEA. Product performance was supported by strong demand in running, training, and football categories, alongside new product launches tied to major sporting events. Despite seasonal negative free cash flow and higher net debt, PUMA maintains strong liquidity and has confirmed its full-year outlook for 2026, positioning the year as a transition period aimed at restoring growth and profitability from 2027 onwards.

(PRESS RELEASE) HERZOGENAURACH, 30-Apr-2026 — /EuropaWire/ — PUMA SE has reported a steady start to its 2026 financial year, supported by ongoing inventory reduction efforts, while reaffirming its outlook for what it describes as a transition year. The company generated sales of €1,863.8 million in the first quarter, representing a modest decline of 1.0% on a currency-adjusted basis, with a reported decrease of 6.3% due to unfavourable exchange rate movements, particularly involving the U.S. dollar, Turkish lira, and Argentine peso.

Despite softer top-line performance, PUMA delivered notable improvements in profitability. The gross profit margin increased by 60 basis points to 47.7%, driven by the reversal of inventory reserves, reduced freight costs, and a more favourable sales channel mix. Operating profit (EBIT) rose by 19.6% to €51.9 million, even after accounting for one-time charges of €12.6 million linked primarily to personnel expenses under the company’s cost efficiency programme.

Chief Executive Officer Arthur Hoeld highlighted both sporting and operational achievements during the quarter, noting that PUMA-sponsored athletes secured 21 medals at the World Athletics Indoor Championships and set new records at the Berlin Half Marathon. He also pointed to successful product launches, including a performance shoe tailored for HYROX and new federation kits for the upcoming FIFA World Cup 2026. Operationally, the company made progress in reducing inventory levels faster than expected, simplifying its product portfolio, and improving internal processes.

Inventory management remained a central focus during the quarter, with stock levels declining by 8.6% to €1,898.0 million as purchasing volumes were reduced. The company indicated that its inventory clean-up programme is slightly ahead of schedule and expects normalisation by the end of 2026. Working capital also improved, falling by 9.7%, reflecting lower inventories, reduced receivables, and decreased payables.

From a channel perspective, wholesale revenue declined by 2.8% on a currency-adjusted basis due to weaker demand in the EMEA region, while direct-to-consumer (DTC) sales increased by 3.8%, supported by strong performance in owned retail stores and targeted promotional activities. E-commerce sales saw a slight increase despite reduced promotional intensity, aided by expansion into additional marketplaces in the Asia-Pacific region. The DTC share of total sales rose to 28.3%, underlining the company’s ongoing shift toward more direct customer engagement.

Regional performance showed mixed trends. Sales in EMEA declined significantly due to weaker demand, adjustments to wholesale distribution, and geopolitical challenges in the Middle East. In contrast, the Americas recorded growth of 6.1% on a currency-adjusted basis, supported by strong demand in Latin America and modest gains in North America. Asia-Pacific delivered a 7.9% increase, with Greater China performing particularly well due to robust demand across both retail and digital channels, as well as strong seasonal sales during the Chinese New Year period.

Across product categories, footwear sales declined slightly overall, although running and training segments performed strongly, driven by NITRO™ technologies and the expansion of HYROX-related products. Apparel sales remained broadly stable with growth in football, golf, and training categories, supported in part by demand linked to national teams qualifying for the FIFA World Cup 2026. Accessories sales were largely unchanged, with positive contributions from golf products.

Free cash flow remained negative at €-201.4 million due to seasonal factors but showed a marked improvement compared to the previous year, reflecting better working capital management and reduced capital expenditure. Investments during the quarter focused primarily on strengthening digital infrastructure and expanding the DTC business, particularly in e-commerce.

Net debt increased to €1,357.6 million, reflecting seasonal financing needs, while liquidity remained robust with €1,104.7 million in combined cash and available credit facilities. This provides the company with sufficient flexibility to pursue its strategic priorities.

Looking ahead, PUMA has confirmed its full-year 2026 outlook, expecting a currency-adjusted sales decline in the low- to mid-single-digit percentage range and an EBIT between €-50 million and €-150 million. Capital expenditure is projected at around €200 million, with a focus on digital capabilities, direct-to-consumer channels, and long-term competitiveness initiatives.

While external uncertainties, including geopolitical developments and macroeconomic conditions, continue to present challenges, PUMA remains focused on strengthening its operational foundation. The company views 2026 as a transitional phase following its strategic reset in 2025, with the measures currently underway expected to support a return to growth and improved profitability from 2027 onwards, as it works toward its ambition of becoming one of the world’s top three sports brands.

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Media Contacts:

Anne Putz
Senior Director Corporate Communications
anne.putz@puma.com

Manuel Boesing
Director Investor Relations
investor-relations@puma.com

SOURCE: PUMA