Puma’s Asia Pacific markets outside China were the sportswear brand’s fastest-growing region in the third quarter. That growth offset part of a sharp slowdown in North America and Europe.
Sales in the rest of Asia Pacific, which includes Australia, rose 13 per cent on a currency-adjusted basis. Puma credited strong wholesale performance across the region, continued momentum in low-profile sneakers and growth in Hyrox, the fitness racing format.
In Australia, Puma operates a standalone website and sells through around a dozen outlet stores. The brand doesn’t have any full-price locations according to its website. It also sells through various stockists including JD Sports, David Jones, Foot Locker and the rolling out Sports Direct business locally.
Puma's rest of APAC market also includes Japan, Korea and Southeast Asia.
Across the wider Asia Pacific region, including China, sales climbed 10 per cent to €394.6 million – or around $631 million in AUD.
Greater China grew a more modest 3.5 per cent. Puma reported that e-commerce in China was lifted by marketplaces and social commerce channels, particularly Dewu and TikTok. Wholesale partners in China placed more cautious orders after Anta Sports announced plans to take a stake in the business.
“In Sportstyle, we continued to strengthen our key franchises with new product launches, while the Speedcat remained particularly popular with consumers in Asia,” Puma chief executive Arthur Hoeld said.
The regional result stood in contrast to the group’s overall performance. Global sales fell 6.3 per cent to €1.78 billion on a currency-adjusted basis. North America was down 17.2 per cent and EMEA was down 11.5 per cent.
Wholesale did much of the damage. The channel fell 9.6 per cent to €1.19 billion as Puma continued to cut what it described as “undesirable business” with mass merchants. It also faced weaker demand from retail partners in EMEA and the Americas. Asia Pacific was the exception, with Puma reporting a stronger wholesale business in the region.
Direct-to-consumer sales rose 1.2 per cent, driven by 7.8 per cent growth in e-commerce. That lifted direct-to-consumer to 33.1 per cent of group sales, up from 30.5 per cent a year earlier.
The wholesale reset now falls to newly appointed chief commercial officer Arne Arens, who joins Puma’s management board on November 15. Arens will lead the company’s global commercial organisation and marketplace strategy.
Arens was previously chief executive of Boardriders, owner of Australian-founded Billabong and Quiksilver. He was at the helm when Authentic Brands Group agreed to acquire the group in 2023. He has also held senior roles at Nike and The North Face.
Puma’s gross margin rose 420 basis points to 49.5 per cent, helped by lower sourcing prices and €29.8 million in tariff refunds. However, higher operating costs and lower sales pushed operating earnings to a €11.4 million loss for the quarter.
Puma narrowed its full-year guidance to an operating loss of between €80 million and €130 million. It still expects currency-adjusted sales to decline by a low- to mid-single-digit percentage.