German athletic apparel and footwear company Puma SE began 2026 with a measured performance, navigating currency pressures and softer demand in key markets while making steady progress on operational priorities, while improving profitability with a rise in gross margins.
The company’s revenue declined by 1 per cent to €1,863.8 million (~$2.18 billion) in the first quarter (Q1) of fiscal 2026 (FY26). Adverse currency movements, particularly in the US dollar, Turkish lira and Argentine peso, weighed on performance, resulting in a reported sales decline of 6.3 per cent.
Puma has reported a 1 per cent decline in Q1 FY26 revenue to €1,863.8 million (~$2.18 billion), with a sharper 6.3 per cent drop on a reported basis due to currency headwinds.
Gross margin improved to 47.7 per cent, supported by cost efficiencies and inventory clearance.
The company reaffirmed its FY26 outlook, expecting sales pressure and negative EBIT as it continues restructuring.
“Operationally, we were off to a solid start to our transition year in 2026. We have managed to reduce our inventory levels faster than planned, streamlined our product portfolio and addressed operational inefficiencies,” said Arthur Hoeld, chief executive officer (CEO) of Puma. He added that the company has made progress in further improving the organisation and its operating model.
The gross profit margin increased by 60 basis points (bps) to 47.7 per cent, supported by reversals of inventory reserves, lower freight costs, and a higher direct-to-consumer (DTC) share, partially offset by wholesale promotions, as well as product, regional mix and currency effects.
Wholesale weak; DTC growth continues
By channel, Puma’s wholesale business decreased by 2.8 per cent to €1,335.7 million (~$1.56 billion), due to lower demand from retail partners in Europe, Middle East and Africa (EMEA). Puma’s DTC business grew by 3.8 per cent, reaching €528.1 million (~$0.62 billion), the company said in a press release.
The increase was primarily attributed to sales growth of 5.7 per cent in owned and operated retail stores, driven by inventory clearance through its outlet stores, supported by targeted promotional activities.
Although e-commerce promotions were reduced, sales experienced a modest increase of 0.6 per cent, supported by additional e-commerce marketplaces across Asia Pacific (APAC). The DTC share for Puma increased to 28.3 per cent in Q1 FY26, up from 27.5 per cent in the same period last year.
Footwear dips; running and training gain
From a product division perspective, sales in footwear decreased by 2.3 per cent to €1,089.6 million (~$1.28 billion). However, both running and training saw strong growth, driven by NITRO styles and the rapid expansion of HYROX products.
“We successful product launches such as the first-ever performance shoe made specifically for HYROX, as well as our federation kits for the FIFA World Cup,” noted Hoeld.
Apparel sales increased by 0.9 per cent to €546.3 million (~$0.64 billion). In addition to golf and training, football also demonstrated robust performance, driven by sales of Puma jerseys for eleven teams, including Portugal, that have qualified for the FIFA World Cup 2026. By contrast, apparel sales in Core, Sportstyle and Kids declined year on year.
Outlook cautious amid uncertainties
Puma has reaffirmed its FY26 outlook following a solid start to the year, while cautioning that geopolitical and macroeconomic uncertainties continue to pose risks. It forecasts EBIT in the range of -€50 million to -€150 million, including one-time effects linked to its cost efficiency programme. Capital expenditure of around €200 million is planned, with a focus on digital infrastructure, DTC expansion, and strategic initiatives to strengthen long-term competitiveness.
The company expects a modest decline in currency-adjusted sales, largely due to weaker performance in North America amid distribution streamlining, with growth in Latin America and Middle East, Africa and India only partly offsetting the impact.
“For the remainder of the year, we will continue to focus on improving the quality of our distribution, cost base and cash management. In doing so, we are laying the foundations for future growth,” concluded Hoeld.
Fibre2Fashion News Desk (RR)
