Puma's new CEO has set out his plan to turn around the beleaguered German sportswear brand, saying it must discount less, improve marketing and cut its product range as it announced plans to slash 900 corporate jobs.
Puma's market value has halved since the start of this year as it struggled to spark interest in its panther-branded sneakers and tracksuits, losing market share in an increasingly competitive sportswear market.
Arthur Hoeld, formerly sales chief at Puma's arch-rival Adidas, took over in July to reboot the company.
"Puma has become too commercial, overexposed in the wrong channels, with too many discounts," he said in a press conference at its headquarters in Herzogenaurach, Germany.
"I am sure we will get the cat on track again."
Investors may have to wait for turnaround payoff
To limit discount pricing and boost consumers' perception of the brand, Puma is overhauling its wholesale strategy to sell fewer products into off-price retailers in the U.S. and increase direct sales through its website and stores.
The company, which announced third-quarter results on Thursday, stuck to its guidance of a loss for 2025.
Puma said it aims to return to growth in 2027 after a "transition year" in 2026, indicating investors may still have a while to wait before the turnaround pays off.
It had already cut 500 roles in a cost-cutting programme announced in March.
Puma shares, which are down more than 50% since January 1, fell 1% by 0930 GMT.
CEO Hoeld: No plans to sell
Rumours have swirled over a potential sale of Puma.
Puma's biggest shareholder Artemis, the privately-owned holding company that controls Gucci owner Kering, has said it is considering all options for its 29% stake, though a source close to the firm told Reuters last month that it would not sell at Puma's current market value.
Reacting to reports it could dispose of some segments, Hoeld said Puma does not plan to sell its golf business or any other part of its portfolio.
Puma said it has already taken steps to cut "undesired" wholesale business, reduce excess inventory at retailers, and limit discounting.
To clear stock that has failed to sell, Puma said it took back products from retailers, driving its inventories up 17.3% to 2.12 billion euros in the quarter. It expects inventories to return to normal levels only by the end of 2026.
Sales fell 15.3% to 1.96 billion euros in the third quarter, slightly below the 1.98 billion expected by analysts in a company-provided poll, due to increased discounting, Puma said.
In currency-adjusted terms the drop was 10.4%. A weak dollar has hurt sales at Puma and its rival Adidas, which report in euros.
