Puma Hits ‘Reset’ Button, Won’t Return to Normal Until 2027

Core Insights - Puma is facing significant challenges in returning to profitability and desirability after a difficult third quarter [1] Financial Performance - Organic sales at Puma decreased by 10.4% in the third quarter, amounting to 1.96 billion euros [2] - Earnings before income tax (EBIT) fell by over 80% for both adjusted and reported figures [2] - Inventory levels rose to 2.12 billion euros, with expectations that normal levels will not be reached until the end of next year [6] Strategic Changes - New CEO Arthur Hoeld, who took over in July, is implementing a strategy to reduce reliance on wholesale and enhance direct-to-consumer channels [3][5] - The company plans to decrease the number of new product releases and reduce purchases from suppliers [5] - Hoeld indicated that Puma's return to healthy growth may not occur until 2027, with the upcoming year focused on transition [6] Market Positioning - Hoeld criticized the previous over-reliance on wholesale, stating it harmed the brand's image due to excessive discounting by larger retailers [4] - The company is currently navigating several challenges, including muted brand momentum and elevated inventory levels [2][6]