Puma shares rally in Frankfurt following a better-than-expected third quarter
The sportswear company reported a 6.3 per cent fall in turnover to 1.78 billion euros, improved its margins and reduced its losses
(Il Sole 24 Ore Radiocor) - Puma shares surged on the Frankfurt Stock Exchange thanks to better-than-expected third-quarter results, with sales falling less than feared, improved margins, reduced losses and a well-received revision to its guidance.
Puma ended the third quarter with revenue down 6.3 per cent to 1.78 billion euros, slightly above forecasts, EBIT of -11.4 million (down from +16.2 million) and a loss of 54.9 million euros, an improvement on last year’s loss of -62.3 million. The company explained that revenue performance was weighed down by reorganisation measures and weaker demand in North America and the EMEA region. The gross margin, however, increased by 420 basis points to 49.5 per cent, partly due to the reimbursement of US tariffs and currency effects. EBIT includes 11.7 million in costs relating to the efficiency programme. Inventories also fell by 24 per cent to 1.6 billion. Free cash flow reached 92 million euros (up from -43 million in the third quarter of 2025), driven by an improvement in working capital, lower taxation and reduced capital expenditure.
“Our third-quarter results were in line with expectations, as we continued to steer Puma through this year of transition, whilst laying the foundations for future growth,” commented CEO Arthur Hoeld. “October marked an important new chapter in Puma’s history, with the entry of Anta Sports as our largest shareholder. We regard this as a strong vote of confidence in our strategy, our management team and our future, and we look forward to building a successful partnership together,” added the CEO, emphasising that, thanks to the strategies implemented, the company has “the ambition to reach the top three and become one of the world’s top three sports brands”.
Against this backdrop, with one quarter still to go, Puma has revised downwards its EBIT forecast for the 2026 financial year and updated its Capex forecasts ‘based on our current assessment of the company’s performance and the operating environment’. The 2026 guidance now targets EBIT of between –80 and –130 million euros (previously: between –50 million euros and –150 million euros), and capital expenditure is expected to come in at under 150 million euros, compared with the 200 million initially forecast. According to market analysts, the quarterly results announcement contains several positive factors that have helped to offset the operating loss in investors’ assessments. These include the improvement in the gross profit margin, thanks to lower procurement costs and a refund of tariffs of €29.8 million, whilst the Asia-Pacific region recorded double-digit growth, acting as a bright spot against the weakness in Europe and North America.
The significant reduction in stock levels was also highly appreciated, whilst the reduction in capital expenditure was seen as evidence of greater financial discipline. Prior to the publication of the results, UBS had forecast an 8 per cent decline in adjusted sales and an operating loss of around 20 million euros, meaning the actual results were relatively better than analysts’ most conservative estimates. Overall, the combination of higher-than-expected turnover, a significantly improved gross margin, a downward revision of full-year loss forecasts for thefull year, and the strategic credibility conferred by Anta Sports’ recent entry as Puma’s largest shareholder, provided investors with sufficient reasons to drive the share price higher, despite the company still being in a phase of transition and reorganisation, with operating losses expected until the end of the year.
