Puma improves profit despite revenue decline as inventory reduction progresses

Sportswear manufacturer Puma has started the new year with a decline in sales. Performance was impacted by the strong euro and weaker demand in the EMEA region. The company, which is currently undergoing a restructuring, saw its revenue fall by 6.3 percent to almost 1.87 billion euros (2.18 billion dollars), as announced by Puma in Herzogenaurach, Germany on Thursday. On a currency-adjusted basis, the decrease was one percent. Progress was also made in reducing excess inventory.

The company was, however, able to improve its earnings. This was supported by the reversal of valuation allowances on inventories; lower freight costs; and a higher share of its own retail business. Headwinds came from discounts and currency effects. Adjusted earnings before interest and taxes (EBIT) rose by five percent to 64.4 million euros. This figure excludes costs for the ongoing savings programme. The consolidated net income improved significantly from 0.5 million to 26.5 million euros. Puma confirmed its forecast.

“Operationally, we have had a solid start to our transition year 2026,” commented CEO Arthur Hoeld. “We were able to reduce our inventories faster than planned. We have also reduced our product portfolio and operational inefficiencies.”

This article was translated to English using an AI tool.

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