Puma's New CEO Launches Ambitious Turnaround Plan to Boost Growth by 2027

Puma, the world's third-largest sportswear company, is embarking on a significant turnaround strategy to address recent financial setbacks. Trailing behind industry giants Nike and Adidas, the Germany-based brand has appointed Arthur Hoeld as its new CEO, who is spearheading an ambitious plan to revitalize the company by the end of 2026. This comprehensive overhaul will include substantial administrative changes and a focused streamlining of its product offerings.

Headquartered in Herzogenaurach, Puma has reported concerning losses during the first nine months of the current year. The company saw an 8.5% decline in sales, dropping to €5.97 billion when compared to the same period last year. This downturn also led to a significant decrease in consolidated earnings, which fell by approximately half a billion euros. Consequently, Puma posted a net loss of €257 million after nine months, highlighting the urgency of its planned strategic adjustments.

To reverse these trends, Puma intends to sharpen its focus on key categories, including football, training, running, and sports fashion. A crucial element of this strategy involves bolstering its direct-to-consumer business, encompassing both its proprietary retail stores and e-commerce platforms. This shift aims to reduce Puma's heavy reliance on wholesale distribution, a channel that has historically dominated its sales. The new CEO has characterized 2026 as a pivotal transition year, with the ultimate goal of returning the company to a trajectory of growth from 2027 onward.

Under Hoeld's leadership, the company plans to strengthen the Puma brand and its distinctive leaping cat logo. Expressing strong confidence in the brand's intrinsic value, Hoeld stated, "I firmly believe that the Puma brand is intact and has incredible potential." The strategy also includes a deliberate reduction in wholesale's share of revenue, largely because discounted sales through major retailers have negatively impacted brand desirability. Furthermore, Puma will implement measures to lower its overall inventory levels, contributing to a more streamlined and profitable operation.