From Sports Trendsetter to Loss-Making Giant: Puma’s Decline and the Search for a Capital Exit

TradingKey - On August 25 (U.S. Eastern Time), market rumors emerged that German sportswear brand Puma (PUMA.DE) could be up for sale, as its controlling shareholder, the Pinault family, explores strategic options including a full divestment. The family has reportedly held preliminary discussions with potential buyers, including Anta and Li-Ning. Following the news, Puma’s shares surged 15% by the close of trading on Friday.

In response, Anta stated it “does not comment on market speculation,” while Li-Ning explicitly denied engaging in any substantive talks or evaluations regarding the acquisition, reiterating its focus on organic brand development.

It should be noted that the Pinault family is the largest shareholder and ultimate controlling party of Kering, the luxury conglomerate. Puma was once a Kering-owned brand but was spun off as the group refocused on luxury. However, the Pinaults still hold approximately 29% of Puma’s shares through their private holding company, Artemis.

Puma’s financial condition has deteriorated sharply, with no clear signs of recovery. Its Q2 2025 earnings report revealed:

• Sales declined 2.0% year-over-year to €1.942 billion, missing forecasts.
• Adjusted EBIT swung to a loss of €13.2 million.
• Net loss widened to €247 million for the quarter.

The company has issued a profit warning, forecasting full-year 2025 sales to fall by at least 10%, with the potential for an annual net loss — a grim outlook for a once-profitable global brand. As a result, Puma’s stock has plunged over 50% year-to-date.

In a fiercely competitive landscape, Puma is under mounting pressure. Rivals Nike and Adidas are showing signs of recovery, while emerging brands like On Running and HOKA are rapidly expanding through focused niche strategies.

To reverse its decline, Puma has launched a cost-efficiency initiative called “NextLevel”, which includes:

• Cutting 500 jobs globally,
• Closing underperforming stores, and
• Appointing Arthur Hoeld, a former Adidas executive, as its new CEO.

The company is also increasing investments in brand marketing, particularly in football and motorsports.

While the sale rumors have sparked investor interest, there is currently no confirmed evidence that any buyer has entered advanced or binding negotiations.

For Anta and Li-Ning, acquiring Puma could offer a fast track to global brand expansion and distribution reach. However, such a deal would come with significant integration risks and financial costs.

In the absence of confirmation from either party, the speculation appears less like an imminent takeover and more like a struggling international brand testing the market for a potential lifeline.