The gross profit margin fell by 260 basis points to 45.2 per cent, primarily due to elevated promotional activity in the wholesale channel, inventory write-downs, and increased freight costs. This was partially cushioned by a favourable mix shift towards direct-to-consumer (DTC).
Puma’s Q3 2025 sales have declined 10.4 per cent on a currency-adjusted basis to €1,955.7 million (~$2.27 billion) amid distribution clean-up, reduced wholesale exposure, and fewer e-commerce promotions.
The brand reported a net loss of €62.3 million (~$72.3 million) and a 45.2 per cent gross margin.
CEO Arthur Hoeld reaffirmed 2025 as a ‘year of reset’.
Operating expenses, excluding one-time costs, decreased 2.6 per cent to €850.6 million, reflecting early benefits from the cost-efficiency programme. However, marketing costs rose as a share of sales due to reduced revenues. Adjusted EBIT dropped sharply to €39.5 million from €237.0 million a year earlier, while reported EBIT came in at €29.4 million after accounting for €10.1 million in one-time restructuring costs. Consequently, the EBIT margin fell to 1.5 per cent. Net loss stood at €62.3 million compared with a €127.8 million net profit in the same period last year. Earnings per share came in at negative €0.42.
The company faced multiple challenges during the quarter, including muted brand momentum, elevated inventory levels across the trade, and lower-quality distribution, as part of its ongoing strategic reset aimed at strengthening long-term brand health by reducing undesirable wholesale business, curbing promotions, and improving inventory quality, Puma said in a press release.
Wholesale revenue decreased 15.4 per cent (currency-adjusted) to €1,385.7 million, reflecting reduced exposure to low-margin channels in North America, Europe, Middle East, and Africa (EMEA), and Latin America. The company also phased out undesirable business and executed significant takebacks to clear excess inventory from trade partners.
DTC sales, however, grew by 4.5 per cent (currency-adjusted) to €570 million, driven by a 5.6 per cent increase in e-commerce and a 3.9 per cent rise in owned and operated retail stores. This boosted the DTC share to 29.1 per cent from 25.1 per cent in Q3 2024, as the company shifted focus towards higher-margin, brand-controlled channels.
Sales fell across all key regions due to the ongoing reset. In the Americas, sales decreased 15.2 per cent (currency-adjusted) to €678.1 million, largely due to reduced exposure to mass merchants in North America. The US market was particularly affected given its significant share of wholesale business. The Asia/Pacific region recorded a 9 per cent decline to €367.1 million, primarily due to a drop in Greater China’s wholesale business, partially offset by growth in DTC. In the Europe, Middle East, and Africa (EMEA) region, sales declined 7.1 per cent to €910.6 million, impacted by takebacks and the deliberate scaling back of low-quality wholesale business.
All product divisions were affected by the strategic reset. Footwear sales declined by 9.9 per cent (currency-adjusted) to €1,045.8 million, with broad-based softness across most categories. Nonetheless, the Speedcat family within the Sportstyle Prime segment performed well, especially in the Asia-Pacific region. Performance categories such as Basketball and Performance Running showed resilience, driven by successful launches like the HALI 1 basketball shoe and Velocity NITRO 4 running shoe.
Apparel sales decreased by 12.8 per cent to €635.5 million, reflecting weaker performance in Sportstyle, while growth in Training—bolstered by Puma’s exclusive HYROX partnership—along with Motorsport and Basketball, provided partial offsets. Accessories declined 6.1 per cent to €274.4 million.
For the first nine months of 2025, Puma’s sales decreased 4.3 per cent (currency-adjusted) to €5,973.9 million, while reported sales dropped 8.5 per cent. Wholesale declined 8.6 per cent, while DTC rose 8.4 per cent—driven by strong e-commerce growth of 14.2 per cent and retail growth of 5.2 per cent. DTC’s share of total sales increased to 28.8 per cent from 25.5 per cent.
Gross profit margin for the nine months decreased 130 basis points to 46.1 per cent due to higher promotions and currency headwinds. Adjusted EBIT fell to €102.0 million from €513.2 million, while one-time costs and impairments led to a reported EBIT loss of -€10.7 million. The company posted a net loss of €308.9 million for the period, compared to a €257.1 million profit in 2024.
“At the end of July, we stated that 2025 would be a year of reset. Since then, we have taken important steps to clean up Puma’s distribution, improve our cash management and reset our operational expenses. By expanding our cost efficiency programme, we are moving quickly to address challenges and make the business more efficient and resilient. With third-quarter results meeting our expectations, we remain committed to executing these measures with discipline,” said Arthur Hoeld, chief executive officer (CEO) of Puma.
“I strongly believe the Puma brand has incredible potential with more than 77 years of history, one of the best product archives in the industry and huge credibility in many major sports. We have identified the areas in which we need to take decisive action and outlined our strategic priorities to become one global sports brand with globally resonating product ranges and inspiring storytelling across markets. With these strategic priorities, we have the clear ambition to establish Puma as a Top 3 sports brand globally, returning to above industry growth and generating healthy profits in the medium term,” added Hoeld.
Puma has expanded its cost-efficiency programme to include a targeted reduction of approximately 900 additional white-collar roles globally by the end of 2026. The company expects these actions, alongside its distribution reset and focus on brand consistency, to create a leaner and more agile operating structure, added the release.
Despite ongoing macroeconomic and geopolitical uncertainty, Puma confirmed its full-year 2025 outlook, expecting sales to decline by a low double-digit percentage on a currency-adjusted basis and a reported EBIT loss for the year. Capital expenditures are projected around €250 million.
Fibre2Fashion News Desk (SG)