Puma Revenue Falls 5% as Europe and North America Weaken

A tough quarter for a household sportswear name

Puma’s latest set of results tells a story of two halves: a shrinking top line on one side, and a quietly improving margin on the other. Revenue for the third quarter came in at roughly €1.78 billion, down 5% on the same period a year earlier. Once currency movements are stripped out, the decline is steeper still at 6.3%.

The pressure was not spread evenly across the map. Demand softened most noticeably in Europe and North America, two markets that have historically carried a large share of the brand’s sales. That geographic split matters for anyone watching the wider sportswear sector, because it points to caution among shoppers in mature Western markets rather than a single regional blip.

Why the margin moved in the opposite direction

While sales slipped, profitability at the gross level moved the other way. The gross profit margin climbed from 45.4% to 49.5% — a meaningful jump in a sector where margins are usually fought over in fractions of a percentage point.

Two factors did the heavy lifting. First, sourcing costs came down, easing the pressure that footwear and apparel makers have felt on input prices. Second, the company received customs duty refunds worth €29.8 million, a one-off boost that flattered the margin picture.

It is worth being clear about what this means. A rising gross margin alongside falling revenue is not the same as a turnaround. It shows the business is buying and producing more efficiently, but it does not yet show that customers are coming back in greater numbers. Readers comparing this against other brands’ results should treat the refund as a helpful but non-recurring tailwind.

Operating profit, restructuring and the bottom line

Adjusted earnings before interest and taxes came in marginally positive at €0.4 million. On its own, that figure looks fragile but at least points in the right direction.

The net result, however, remained firmly negative. Puma posted a net loss of €54.9 million, an improvement on the €62.3 million loss recorded a year earlier, but still a loss. Restructuring costs are the main reason the company stayed in the red despite the positive adjusted operating figure — a reminder that reorganising a global brand carries a real price tag that lands directly on the income statement.

The key numbers at a glance

• Revenue: approximately €1.78 billion, down 5% year on year
• Currency-adjusted revenue change: −6.3%
• Gross profit margin: 49.5%, up from 45.4%
• Customs duty refunds: €29.8 million
• Adjusted EBIT: €0.4 million
• Net loss: €54.9 million, against €62.3 million a year earlier

Guidance for 2026 stays cautious

The outlook does not suggest a rapid bounce. For 2026, the company still expects a currency-adjusted revenue decline in the low- to mid-single-digit range — in other words, another year of contraction rather than recovery.

On operating profit, the guidance has been narrowed rather than loosened. Puma now expects an operating EBIT of between minus €80 million and minus €130 million. A narrower range gives analysts a tighter band to work with, but the direction of travel is unambiguous: losses are expected to continue at the operating level.

Capital spending pulled back

The company has also trimmed its plans for investment. Capital expenditure is now expected to come in below €150 million, down from an initial figure of around €200 million that had been earmarked.

Cutting capex is a common response when sales are under pressure. It protects cash in the short term, but it can also mean slower progress on store upgrades, logistics and product development. For a brand competing against larger rivals with deeper pockets, the balance between preserving cash and investing for recovery is a delicate one.

What to watch from here

The next few quarters will hinge on whether demand in Europe and North America stabilises. A second question is whether the sourcing-cost benefit and the duty refund represent a durable improvement in margin or a temporary cushion.

Restructuring costs should also be monitored closely: as they fade, the gap between adjusted operating profit and the net result ought to narrow. Until then, Puma’s story is one of a business tightening its cost base and its spending while waiting for shoppers in its core Western markets to return with more confidence.