The global sportswear market has claimed another high-profile casualty. PUMA SE has announced a sweeping restructuring effort that includes the reduction of around 900 white-collar roles worldwide by the end of 2026. The move comes as part of the brand’s expanded cost efficiency programme, marking another chapter in the growing layoff wave that has swept through the apparel and retail sectors this year.
For the third quarter of 2025, PUMA reported a steep 10.4% decline in sales on a currency-adjusted basis to €1.96 billion. Reported sales fell 15.3% due to a strong euro and a strategic pullback from mass-market channels. The sportswear giant’s wholesale business shrank 15.4%, reflecting its deliberate move to clean up distribution, while its Direct-to-Consumer arm grew modestly by 4.5%, buoyed by e-commerce gains and improved pricing discipline.
Profitability took a hit as well. The company’s gross profit margin narrowed by 260 basis points to 45.2%, pressured by increased promotions, inventory clean-up costs, and higher freight expenses. Adjusted EBIT dropped to €39.5 million, while reported EBIT stood at €29.4 million after accounting for €10.1 million in one-time restructuring charges. Net loss came in at €62.3 million, compared with a profit of €127.8 million a year ago.
The results reflect a turbulent but intentional phase for PUMA. The brand, once celebrated for its strong streetwear-meets-sport positioning, now finds itself contending with muted brand momentum, excessive inventory, and the after-effects of over-commercialization. To address these issues, PUMA has initiated what it calls a “reset year”, a strategic overhaul aimed at rebuilding brand equity, simplifying operations, and setting the foundation for sustainable growth from 2027 onwards.
Regional performance revealed widespread softness. In the Americas, sales fell 15.2%, driven by a sharp decline in North America, where PUMA is phasing out mass merchant relationships. The Asia-Pacific region saw a 9% dip, impacted by weaker demand in Greater China, while EMEA sales slipped 7.1% due to slower wholesale activity across Europe.
The company’s cost efficiency drive now extends beyond its earlier “NextLevel” initiative, under which 500 roles had already been eliminated. PUMA is also rationalising its product portfolio, aiming to reduce the number of new articles released each season and sharpen focus on high-performing categories such as Football, Running, Training, and Sportstyle Prime.
Despite the grim figures, PUMA has reaffirmed its full-year 2025 outlook, expecting a low double-digit decline in sales and a reported EBIT loss, before returning to profitability in the medium term. The brand maintains that the current period of contraction will ultimately strengthen its foundation, allowing it to compete more effectively with global rivals.
Arthur Hoeld, Chief Executive Officer of PUMA SE, said, “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.”
“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.” he added.
