Puma expects another loss and cancels dividend in turnaround drive

By Linda Pasquini and Helen Reid

Feb 26 (Reuters) - German sportswear brand Puma cancelled its dividend and said it expected to report another loss this year, although last year's results were better than analysts had expected, which boosted the share price in early trade on Thursday.

CEO Arthur Hoeld, formerly a sales chief at rival Adidas who became Puma's boss in July, said last year was a "reset year" for the company. Its sales have fallen as it lost ground to other sportswear brands in an increasingly competitive market.

Puma on Thursday said it expects an operating loss of between 50 million and 150 million euros ($59-$177 million) in 2026, and reported an operating loss of 357.2 million euros in 2025 having made a profit of 548.7 million a year earlier.

Its shares, which have fallen for the last four years, gained more than 3% at the open as the 2025 loss was better than the 374.3 million analysts expected.

Bernstein analysts said Puma's inventory numbers showed it was clearing out stock faster than it had expected, a positive sign.

MORE EXPOSED THAN ADIDAS AS CONSUMERS CUT SPENDING

Puma typically sells at lower prices than Adidas, which has left it more exposed to shoppers with limited budgets who have been forced to curb spending.

Its 2024 release of the Speedcat range was less successful than it had hoped.

Hoeld has said he will curb discounting, cut the product range, and improve the brand.

Puma may also get some help from China's leading sportswear brand Anta which struck a deal last month to become the company's biggest shareholder. It bought a 29% stake from Artemis, the Pinault family holding company that also owns luxury group Kering. Anta said it would help Puma grow its sales in China.

Sales will keep declining this year, Puma said, but at a slower pace in the low- to mid-single-digit percentage range. Sales slid 8.1% in currency-adjusted terms to 7.3 billion euros in 2025.

Puma has taken on more debt to finance its turnaround, securing promissory note loans in May and November last year for a total of 275 million euros, and a 500 million euro bridge loan in December. Net debt jumped to 1.064 billion euros by the end of 2025, up from 119.8 million euros a year before.

($1 = 0.8462 euros)

(Reporting by Linda Pasquini and Helen Reid, Editing by Ludwig Burger and Barbara Lewis)