Fashion
Germany’s Puma’s Q3 sales drop 10.4% as brand executes strategic reset
The gross profit margin fell by 260 basis points to 45.2 per cent, primarily due to elevated promotional activity in the wholesale channel, inventory write-downs, and increased freight costs. This was partially cushioned by a favourable mix shift towards direct-to-consumer (DTC).
Puma’s Q3 2025 sales have declined 10.4 per cent on a currency-adjusted basis to €1,955.7 million (~$2.27 billion) amid distribution clean-up, reduced wholesale exposure, and fewer e-commerce promotions.
The brand reported a net loss of €62.3 million (~$72.3 million) and a 45.2 per cent gross margin.
CEO Arthur Hoeld reaffirmed 2025 as a ‘year of reset’.
Operating expenses, excluding one-time costs, decreased 2.6 per cent to €850.6 million, reflecting early benefits from the cost-efficiency programme. However, marketing costs rose as a share of sales due to reduced revenues. Adjusted EBIT dropped sharply to €39.5 million from €237.0 million a year earlier, while reported EBIT came in at €29.4 million after accounting for €10.1 million in one-time restructuring costs. Consequently, the EBIT margin fell to 1.5 per cent. Net loss stood at €62.3 million compared with a €127.8 million net profit in the same period last year. Earnings per share came in at negative €0.42.
The company faced multiple challenges during the quarter, including muted brand momentum, elevated inventory levels across the trade, and lower-quality distribution, as part of its ongoing strategic reset aimed at strengthening long-term brand health by reducing undesirable wholesale business, curbing promotions, and improving inventory quality, Puma said in a press release.
Wholesale revenue decreased 15.4 per cent (currency-adjusted) to €1,385.7 million, reflecting reduced exposure to low-margin channels in North America, Europe, Middle East, and Africa (EMEA), and Latin America. The company also phased out undesirable business and executed significant takebacks to clear excess inventory from trade partners.
DTC sales, however, grew by 4.5 per cent (currency-adjusted) to €570 million, driven by a 5.6 per cent increase in e-commerce and a 3.9 per cent rise in owned and operated retail stores. This boosted the DTC share to 29.1 per cent from 25.1 per cent in Q3 2024, as the company shifted focus towards higher-margin, brand-controlled channels.
Sales fell across all key regions due to the ongoing reset. In the Americas, sales decreased 15.2 per cent (currency-adjusted) to €678.1 million, largely due to reduced exposure to mass merchants in North America. The US market was particularly affected given its significant share of wholesale business. The Asia/Pacific region recorded a 9 per cent decline to €367.1 million, primarily due to a drop in Greater China’s wholesale business, partially offset by growth in DTC. In the Europe, Middle East, and Africa (EMEA) region, sales declined 7.1 per cent to €910.6 million, impacted by takebacks and the deliberate scaling back of low-quality wholesale business.
All product divisions were affected by the strategic reset. Footwear sales declined by 9.9 per cent (currency-adjusted) to €1,045.8 million, with broad-based softness across most categories. Nonetheless, the Speedcat family within the Sportstyle Prime segment performed well, especially in the Asia-Pacific region. Performance categories such as Basketball and Performance Running showed resilience, driven by successful launches like the HALI 1 basketball shoe and Velocity NITRO 4 running shoe.
Apparel sales decreased by 12.8 per cent to €635.5 million, reflecting weaker performance in Sportstyle, while growth in Training—bolstered by Puma’s exclusive HYROX partnership—along with Motorsport and Basketball, provided partial offsets. Accessories declined 6.1 per cent to €274.4 million.
For the first nine months of 2025, Puma’s sales decreased 4.3 per cent (currency-adjusted) to €5,973.9 million, while reported sales dropped 8.5 per cent. Wholesale declined 8.6 per cent, while DTC rose 8.4 per cent—driven by strong e-commerce growth of 14.2 per cent and retail growth of 5.2 per cent. DTC’s share of total sales increased to 28.8 per cent from 25.5 per cent.
Gross profit margin for the nine months decreased 130 basis points to 46.1 per cent due to higher promotions and currency headwinds. Adjusted EBIT fell to €102.0 million from €513.2 million, while one-time costs and impairments led to a reported EBIT loss of -€10.7 million. The company posted a net loss of €308.9 million for the period, compared to a €257.1 million profit in 2024.
“At the end of July, we stated that 2025 would be a year of reset. Since then, we have taken important steps to clean up Puma’s distribution, improve our cash management and reset our operational expenses. By expanding our cost efficiency programme, we are moving quickly to address challenges and make the business more efficient and resilient. With third-quarter results meeting our expectations, we remain committed to executing these measures with discipline,” said Arthur Hoeld, chief executive officer (CEO) of Puma.
“I strongly believe the Puma brand has incredible potential with more than 77 years of history, one of the best product archives in the industry and huge credibility in many major sports. We have identified the areas in which we need to take decisive action and outlined our strategic priorities to become one global sports brand with globally resonating product ranges and inspiring storytelling across markets. With these strategic priorities, we have the clear ambition to establish Puma as a Top 3 sports brand globally, returning to above industry growth and generating healthy profits in the medium term,” added Hoeld.
Puma has expanded its cost-efficiency programme to include a targeted reduction of approximately 900 additional white-collar roles globally by the end of 2026. The company expects these actions, alongside its distribution reset and focus on brand consistency, to create a leaner and more agile operating structure, added the release.
Despite ongoing macroeconomic and geopolitical uncertainty, Puma confirmed its full-year 2025 outlook, expecting sales to decline by a low double-digit percentage on a currency-adjusted basis and a reported EBIT loss for the year. Capital expenditures are projected around €250 million.
Fibre2Fashion News Desk (SG)
The exemptions had been discontinued on March ** this year as the government did not issue a fresh notification before the expiry of the previous one. As a result, duty exemptions were unavailable to Indian exporters from April until the new notification was issued on October **.
Under the latest notification, imports of materials including wet blue, crust, and finished leather; buckles, zips, soles, linings, and fittings will continue to enjoy Nil customs duty when used in the manufacture of leather garments, footwear, and accessories meant for export.
Prada achieved double-digit growth in Asia Pacific (10 per cent), with improving trends in Mainland China. Europe rose 6 per cent, supported by resilient local demand and steady tourism. The Americas advanced 15 per cent, showing sequential acceleration in the third quarter. Japan grew 3 per cent, with stronger local and traveller demand after exceptional tourism in 2024. The Middle East delivered robust 21 per cent growth, moderating slightly in the third quarter.
Prada Group’s retail sales increased 9 per cent to €3,647 million (‘$4.26 billion) in the nine months to September 2025, with the third quarter up 8 per cent.
Asia Pacific grew 10 per cent, the Americas 15 per cent, Europe 6 per cent, Japan 3 per cent, and the Middle East 21 per cent.
Miu Miu surged 41 per cent, while Prada remained resilient.
“The consistency of our results, in a complex macroeconomic environment, confirms the strength of our brands and the validity of our strategy. With the one just closed, the group has delivered 19 quarters of uninterrupted growth. We continue to focus on creativity, product excellence and craftsmanship as foundations for enduring relevance and long-term development. These principles guide us as we navigate an evolving landscape with confidence, discipline and responsibility,” Patrizio Bertelli, Prada Group chairman and executive director, said.
Prada showed good resilience, with retail sales at -1.6 per cent over the nine-month period and -0.8 per cent in Q3. The brand continued to express its creative dynamism, driving a well-balanced product category mix and a consistent focus across strategic price points. The Womenswear SS26 fashion show offered a unique reflection on the role of clothes in reaction to the overloaded contemporary culture, the company said in a press release.
Miu Miu progressed on a healthy growth trajectory at 41 per cent y-o-y, with the third quarter at 29 per cent, driven by widespread appreciation across categories and geographies, as its captivating aesthetics continued to nurture the global influence of the brand. The SS26 fashion show underlined the social importance of work in women’s life. The FW25 campaign re-imagined wardrobe archetypes through a fluid interplay of tailoring and feminine silhouettes, while the Atheneum pop-up initiative embedded collegiate codes with the brand’s irreverence.
“Our performance confirms the health of our brands and further solid, diligent execution by our teams. Prada accelerated versus the previous quarter; Miu Miu has maintained a sustained growth trajectory for 4 years, including in this quarter that was facing triple-digit comps. Despite a still challenging environment, we remain confident in our trajectory, focusing on products and experiences that spark emotional engagement, while further improving our speed and flexibility,” Andrea Guerra, group chief executive officer, said.
Fibre2Fashion News Desk (RR)
Published
November 4, 2025
In France, the Galeries Lafayette group made its position clear as soon as the Société des Grands Magasins announced its plan to introduce ultra-fast-fashion brand Shein into five regional Galeries Lafayette stores that SGM has operated for several years. After weeks of negotiations, and on the eve of Shein taking up more than 1,000 square metres at BHV, the two parties formally acknowledged their disagreement in a joint press release.
“Galeries Lafayette and the SGM group have agreed to terminate the affiliation agreements that have bound them since 2021 for the seven stores that SGM owns and operates under the Galeries Lafayette banner,” read the statement. “These stores are located in Angers, Dijon, Grenoble, Le Mans, Limoges, Orléans, and Reims.”
Frédéric Merlin‘s company SGM has announced that it will operate these department stores under a new name, to be revealed shortly.
“This decision stems from a strategic divergence within the collaboration,” read the joint press release. “This collaboration will end in the coming weeks, according to a timetable which is currently being finalised.”
These stores, located in prime sites in major French cities, currently carry numerous Galeries Lafayette own-brand ranges and brands listed by the Galeries Lafayette group’s central buying office. Due to this, the continuity of operations at these locations is now in question.
The two parties state that they are “pursuing their discussions in a constructive spirit and doing their utmost to ensure an orderly transition that respects teams and customers.” Nonetheless, customers and employees will naturally be concerned about this situation.
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