Puma SE Faces Continued Losses Amid Strategic Reset

The German sports‑wear conglomerate Puma SE, listed on the Xetra exchange under the ticker PUMA, concluded 2025 with a net loss of €643.6 million – a figure that underscores the company’s ongoing struggle to regain profitability. This loss represents the third consecutive red quarter, a trend that has eroded investor confidence and prompted a sharp reevaluation of the firm’s strategic direction.

Financial Performance and Market Reaction

  • 2025 Net Loss: €643.6 million, a sharp decline from prior periods, reflecting falling revenues and shrinking operating margins.
  • Dividend Policy: In line with the heavy loss, Puma announced that it would revoke its dividend for the year, signaling a focus on internal restructuring rather than shareholder payouts.
  • Stock Price: As of 23 February 2026, the share price stood at €23.22 (down from a 52‑week high of €30.53), reflecting market skepticism.
  • Market Capitalisation: Approximately €3.34 billion as of the most recent trading day.
  • Price‑Earnings Ratio: A negative -11.88, indicating that the company is operating at a loss and investors are pricing shares at a discount relative to earnings.

Despite the disappointing fundamentals, the stock displayed a degree of resilience. On 26 February, the share price climbed 2.5 % to €23.20, buoyed by the release of the quarterly results and speculation that the firm’s “reset” strategy might soon yield visible gains.

“Reset” Strategy and Structural Changes

Puma’s management has dubbed 2025 its “Reset Year”, signalling an aggressive overhaul of its product portfolio and cost structure. Key aspects of this strategy include:

  • Product Line Rationalisation: The company is streamlining its offerings, focusing on high‑margin footwear and apparel while reducing inventory of low‑performing categories.
  • Supply‑Chain Optimisation: Efforts to curb excess inventory, which has been a significant contributor to the current losses, are underway.
  • Leadership Transition: The appointment of Arthur Hoeld as CEO on 1 July has brought a new perspective to the board, with an emphasis on lean operations and innovation.

These initiatives are still in early stages, and analysts caution that the full impact on profitability will not materialise until 2026 or 2027, when the restructuring costs are fully amortised.

Investor Sentiment and Short‑Selling Activity

The period following the release of 2025 results saw a noticeable uptick in short‑selling activity. According to data published by 4Investors.de, Puma SE was among the most heavily short‑sold stocks in February, alongside peers such as Auto1 and Energiekontor. This activity suggests that a segment of the market remains wary of the company’s trajectory, despite the modest upward movement in the share price.

Outlook

While the company’s quarterly results for 2025 have not met expectations, several signs point towards a possible turnaround:

  • Operational Focus: The emphasis on high‑margin products and lean inventory management could improve margins once the new supply chain is fully operational.
  • Market Position: Puma continues to maintain a global presence, with a diversified customer base across running, tennis, training, and basketball segments.
  • Strategic Partnerships: Ongoing collaborations with athletes and sports teams could help drive brand visibility and sales in key markets.

Nonetheless, the negative price‑earnings ratio and ongoing losses signal that investors will likely adopt a cautious stance in the near term. The company’s ability to navigate this “reset” period and translate operational changes into measurable financial improvement will be closely monitored by market participants and analysts alike.