The Puma SE logo is displayed in the window of the flagship store in Berlin, Germany, Wednesday, March 1, 2023. Puma forecasts slower profit growth as new CEO Arne Freundt faces excess inventory and higher marketing costs for sneakers and apparel. Photographer: Krisztian Bocsi/Bloomberg via Getty Images
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Puma Stocks finished 18.9% higher on Thursday following a report that China Anta Sports is one of several companies looking to buy the struggling German sports brand.
Puma is in the midst of what is being called a “reset” as sales growth has fallen sharply following a surge in revenue during Covid-19. However, post-pandemic, the brand has struggled with declining customer resonance and resulting high inventories.
Earlier this month, shares hit their lowest level in more than 10 years, while year-to-date losses total more than 50% amid an increasingly competitive sportswear market and tariffs weighing on customer confidence.
According to a Bloomberg report citing unnamed sources, the company is now considering a purchase. Hong Kong-listed Anta Sports is said to be weighing a possible bid for the sportswear maker, the outlet reported.
Puma declined to comment and Anta Sports did not immediately respond to a request for comment from CNBC.
For Anta, the Puma acquisition could be a gateway to the Western world, said Metzler analyst Felix Dennl, highlighting the Chinese company’s strong track record in turning around underperforming assets. “On the one hand, Anta already has extensive exposure to the international market through its stake in Amer Group, so the added value that Puma is expected to add to the portfolio is not entirely clear,” he added.
Puma could also attract interest from Chinese clothing company Li Ning and Japan’s Asics Corp, according to the Bloomberg report.
“So far, the company has not engaged in any substantial negotiations or evaluations regarding the transaction mentioned in the news,” Li Ning said in an emailed statement. Asics did not immediately respond to a request for comment.
Frankfurt-listed Puma shares are up 13.7% as of 12:30 p.m. London time (7:30 a.m. ET), Before the end of the session it rose 18.9%.
Puma actions so far this year
Puma CEO Arthur Hoeld, appointed on July 1, is tasked with reviving the ailing brand. Its recovery plan involves cutting jobs, reducing its product range and improving marketing operations.
“At the end of July, we declared that 2025 would be a reset year,” Hoeld said in a statement on Oct. 30. “Since then, we have taken important steps to clean up PUMA’s distribution, improve our cash management and restore our operating expenses. By expanding our cost efficiency program, we are moving quickly to address challenges and make the business more efficient and resilient.”
The company also said it aims to establish itself as one of the “top 3 global sports brands” as it reported quarterly sales fell by double digits.
Puma acknowledged that key challenges included weak brand momentum, US tariffs and high inventory levels.
In July, the company cut its 2025 guidance, saying it now expects sales to decline at a low-double-digit percentage rate, from a previous guidance of sales growing at a low- to mid-single-digit percentage rate.
It also said it expects to post an operating profit loss in 2025, a big swing from previously expected profits of between 445 million euros ($516 million) and 525 million euros, due to the impact of the tariffs.
Puma’s largest shareholder is currently Artemis, which owns a 29% stake in the company. Artemis: the holding company of France’s billionaire Pinault family and the largest shareholder of the owner of Gucci. Kering – has been spending a lot and has seen his debt skyrocket.
Artemis’ valuation expectations for Puma could be a major hurdle for any transaction involving the sports brand, Bloomberg reported.
–Karen Gilchrist contributed to this report.
