Can Puma's Turnaround Succeed When Sales Are Still Falling?

A successful business turnaround does not always start with rising sales. Sometimes a company must first reduce inventory improve its supply chain, control costs and rebuild its market presence before revenue can grow.

That is the situation facing the German sportswear company Puma. After struggling with demand too much inventory and less brand energy the company has been working on a big business reset aimed at regaining its edge against bigger competitors like Nike and Adidas.

Its recent financial results, released on October 30 2026 show a mixed situation. Pumas third-quarter sales dropped by 6.3% when adjusted for currency to €1.776 billion. However the company also reported a 24.3% drop in inventory better gross profit margins and positive free cash flow.

These signs suggest that its restructuring efforts are starting to help parts of the business. But the financial results also show a problem: cost improvements are not enough if customers are not buying more products.

Puma has called 2026 a transition year. Is hoping for healthy growth in 2027. Whether that happens will depend on its ability to bring back demand while keeping the discipline it introduced during the reset.

1. Falling Sales Show That the Recovery Is Not

Pumas latest sales numbers explain why the turnaround is still tough.

In the quarter of 2026 currency-adjusted sales dropped by 6.3% to €1,776.2 million down from €1,870.1 million in the same time period in 2025. On a basis revenue dropped by 5%.

The drop came from a mix of choices and weaker customer demand. Puma has intentionally cut business with some mass-market retailers and partners it sees as not fitting its long-term brand goals. At the time customer demand stayed low in key areas, especially North America and Europe.

This creates a situation. Cutting quality wholesale business can help the brand and profits over time but it also lowers immediate sales. The company needs to make up for the lost money with demand from better retail partners, direct sales and good product launches.

Puma’s results also show that the problem is not one product area. Footwear sales dropped by 5.1% when adjusted for currency and apparel sales fell by 9.4%. Accessories had a drop of 3.2%.

The numbers suggest that Puma has not yet seen a recovery in demand across its full range of products.

The difference between planned sales cuts and real demand weakness is important. Some of the revenue loss is part of the company’s plan. Other parts come from customers choosing other brands or spending less on sportswear. A strong turnaround will require Puma to solve both of these problems.

2. Lower Inventory Is One of the Important Improvements

One of the biggest problems Puma had in its previous business cycle was too much inventory. Many unsold items can force a sportswear company to give discounts, lower prices and take weaker profits.

It can also hurt relationships with partners. When wholesalers have products than they can sell they might order less and delay new purchases.

Puma has been working to fix this by cutting buying amounts clearing products and changing its distribution system.

The latest results show progress. Inventory ended at €1,608.9 million at the end of September 2026 a drop of 24.3% compared to the time in 2025.

This improvement is important because lower inventory can free up money reduce the need for sales and give the company control over future product launches.

The drop needs to be looked at closely. Puma said the improvement mainly came from buying less. Lower inventory does not always mean products are selling faster or that demand has gone up.

The next challenge is to keep inventory without running out of popular products. A company that buys much risks discounts and extra stock while one that buys too little might miss out on sales if demand increases.

For Puma managing inventory is key, to the turnaround. The goal is not just to reduce what’s in the warehouse but to make and send the products in the right amounts to match customer needs.