German sportswear maker Puma has tightened its financial outlook for 2026, signaling that the worst of its current slump may be passing. The company now expects an operating loss of between €80 million and €130 million next year, a narrower range than its previous forecast of €50 million to €150 million. The move came after third-quarter sales beat analyst expectations, even though revenue still declined.
For the three months ended September, Puma reported sales of €1.77 billion, down 5% from the same period a year earlier. That was better than the market had feared, and investors took some comfort from a sharp 24% drop in inventories, suggesting the company is making progress clearing excess stock.
A transition year for Puma
Puma has described 2026 as a “transition year” as CEO Arthur Hoeld works to refresh the brand and win back shoppers from rivals Adidas and Nike. The company is also grappling with a broader slowdown in consumer spending on sneakers and athletic apparel, a trend that has hit the entire sportswear sector.
One of the biggest challenges is the retail environment. Sporting-goods retailers, which account for most of Puma’s sales, have been working through their own excess inventory after over-ordering during the pandemic boom. That has meant fewer orders for Puma and other brands, putting pressure on revenue.
The inventory reduction is a positive sign. A 24% drop in stock levels suggests that Puma’s products are moving off shelves, and that retailers may soon need to restock. That could set the stage for a recovery in orders later in 2026 or into 2027.
What the numbers mean
Puma’s revised loss forecast is a mixed bag. The midpoint of the new range is €105 million, slightly lower than the previous midpoint of €100 million, meaning the company expects a marginally deeper loss. But the range is much tighter, giving investors a clearer idea of where results are likely to land.
For everyday investors, the key takeaway is that Puma is still losing money, but the pace of decline may be slowing. The better-than-expected sales figure and the big inventory reduction are both encouraging, but the company remains in a difficult spot as it tries to revive its brand in a crowded market.
Puma is not alone in facing these headwinds. Columbia Sportswear recently beat estimates and raised its outlook, showing that some outdoor brands are faring better. But the broader sportswear sector is still dealing with weak demand and discounting.
What to watch next
Investors will be watching several things in the coming months. First, whether Puma can return to sales growth, particularly in its key markets like North America and China. Second, whether the inventory improvement translates into better orders from retailers. Third, any signs that the brand refresh is resonating with consumers, especially younger shoppers who have been gravitating toward Adidas and emerging brands.
The company’s ability to control costs will also be crucial. With sales falling, Puma needs to keep expenses in check to limit losses. The narrower forecast suggests management has a better handle on the cost side.
For those holding Puma shares, the news is cautiously positive. The stock has been under pressure as the company struggled, but the improved outlook could provide some support. However, the company is still expected to lose money next year, so a full recovery is likely still some way off.
In the meantime, investors should keep an eye on the broader retail environment. If consumer spending picks up and retailers start ordering again, Puma could benefit. But if the slowdown persists, the company may need to make further adjustments to its plans.
Puma’s situation is a reminder that even well-known brands can face tough periods. The key is whether management can execute on its turnaround strategy and return the company to profitability. The narrowed loss forecast is a small step in the right direction, but there is still a long road ahead.
