German sportswear brand Puma released its fiscal 2025 results on February 26, a period marked by significant transformation. This report comes shortly after ANTA SPORTS (HK02020) announced its acquisition of a 29.06% stake in Puma.

The financial report made no mention of ANTA's investment or any changes in shareholding structure, indicating management's focus on internal affairs. However, the figures were challenging: full-year sales fell approximately 8.1% to 7.296 billion euros. Adjusted EBIT was -166 million euros, and after including 192 million euros in restructuring and goodwill impairment charges, reported EBIT reached -357 million euros. Puma's outlook for 2026 remains cautious.

During a subsequent conference call, Puma CEO Arne Holte acknowledged that Puma's sales in China might face short-term pressure. He noted that ANTA favors a direct-to-consumer (DTC) strategy, which differs from Puma's reliance on retailer sales.

Currently, Greater China accounts for only about 7% of Puma's total sales. Given ANTA's retail expertise and successful track record, several brokerage firms anticipate this share could increase following the completion of the stake acquisition.

An industry insider commented on Puma's performance in the domestic market, stating, "Sales last year were actually mediocre, but to be fair, Puma's product strength remains solid. The key question is whether ANTA can help turn things around in the Chinese market."

Puma's strategic focus for 2025 was clear: clearing channel inventory, revitalizing brand appeal, and optimizing operational efficiency. These proactive measures contributed to the full-year financial decline.

According to the earnings report, Puma's full-year currency-adjusted sales decreased by 8.1% to 7.296 billion euros. The gross margin fell by 260 basis points to 45.0%. Including one-time restructuring and impairment charges of approximately 192 million euros, EBIT for the period was -357 million euros. The fourth quarter was particularly challenging, with adjusted sales dropping 20.7% and the gross margin declining sharply by 750 basis points to 40.2%.

Puma initiated several adjustments last year: reducing non-core wholesale business, clearing excess inventory, scaling back promotions in owned channels, trimming North American mass-market merchant channels, and gradually exiting low-efficiency operations in Latin America, EMEA, and Asia-Pacific. These actions led to a 12.8% decline in wholesale revenue for the full year, worsening to a 27.7% drop in the fourth quarter.

In contrast, the direct-to-consumer (DTC) business was a bright spot, growing 3.4% for the year and increasing its share from 28.9% to 32.4%. In the Asia-Pacific region, which includes China, full-year sales declined 7.4% to 1.595 billion euros, also showing a structural shift of "wholesale down, DTC up," indicating strengthening brand direct-selling capabilities.

CEO Holte stated, "2025 was a year of full-scale 'reset' for Puma. We aim to build Puma into one of the top three global sports brands, with a mid-term goal of returning to above-market growth and achieving healthy profitability."

Puma's inventory stood at 2.06 billion euros at the end of 2025, a slight increase of 2.3% from the start of the year. The company reported that inventory clearance progress was slightly ahead of plan, with levels expected to normalize by the end of 2026. Free cash flow was -530 million euros, but the company secured additional financing, ending the year with 1.202 billion euros in unused credit lines.

Due to a net loss in 2025, Puma's Management and Supervisory Boards will propose no dividend for fiscal 2025 at the Annual General Meeting on May 19.

For the new fiscal year, Puma provided a cautious outlook: it expects currency-adjusted sales to decline by a low to mid-single-digit percentage. EBIT is projected to be between -50 million and -150 million euros. Planned capital expenditure is approximately 200 million euros, with ongoing investment in logistics, digitalization, and other infrastructure.

Holte described 2026 as a "transition year." Throughout the year, Puma will continue to focus on streamlining distribution channels and further reducing inventory levels. The top priority during this transition is to prepare the company for sustainable development, ensure financial stability, and position Puma to return to healthy, above-market growth from 2027 onward.

One month prior, on January 26, ANTA SPORTS, China's largest sportswear brand, announced an agreement with Artémis, owned by the Pinault family, to acquire a 29.06% stake in Puma for approximately 1.5 billion euros in cash. This deal will make ANTA one of Puma's largest shareholders, drawing significant attention in the global sporting goods industry.

Despite the major acquisition news, Puma's management made no reference to ANTA's incoming stake in the latest earnings report. This deliberate omission may signal that, pending the finalization of the ownership change and clarity on strategic synergies, Puma's leadership is concentrating on its ongoing business restructuring to address market concerns through performance.

However, on the day ANTA announced the acquisition, CEO Holte issued a statement saying, "Puma's strategic focus is very clear: to strive to become one of the top three sports brands globally. ANTA's goal is to help Puma fully realize its brand potential while preserving its brand essence."

Brokerages, including China Renaissance Securities, noted that China is one of the world's largest sporting goods markets. With Puma's sales in Greater China accounting for only about 7%, well below the industry average, ANTA's deep understanding of Chinese consumers and its omnichannel, full-chain operational capabilities are expected to unlock significant growth potential for Puma in China.

Driven by factors including fiscal 2025 results that were better than expected, Puma's stock price surged 9.8% at the market close. An industry professional commented, "Puma's performance this year came as no surprise to the industry; it's a case of anticipated news finally happening. As the strategic direction under ANTA's influence becomes clearer, it will be worth watching to see if Puma can stage a comeback in the domestic market."