Investing.com -- Shares in German sportswear maker Puma jumped 7% on Friday, their highest since Aug. 10, as it reported third-quarter sales above analyst forecasts and a narrower 2026 loss range despite slipping to an operating loss.
Puma slipped to a quarterly operating loss as weak demand in North America and Europe outweighed a €30 million tariff refund, while the sportswear maker narrowed its 2026 loss forecast by trimming the best-case end of its range.
Third-quarter operating loss was €11.4 million, compared with a profit of €16.2 million a year earlier, as weaker consumer demand and efforts to reduce business with mass merchants weighed on sales.
The result included a €29.8 million tariff refund and €11.7 million in one-time costs related to its cost-cutting programme.
Analysts polled by Vara Research had forecast an operating loss of €10.0 million. Excluding one-time costs, operating profit was €0.4 million, compared with €26.3 million a year earlier and the €2.6 million analysts expected.
Sales fell 6.3% at constant currency to €1.78 billion, mainly reflecting measures launched in the third quarter of 2025 to reduce less desirable business with mass merchants and weaker consumer demand linked to the conflict in the Middle East.
Reported sales declined 5.0%, but beat analysts' €1.75 billion forecast. Analysts had expected a 7.0% decline, while second-quarter sales fell 9.4% at constant currency, Jefferies said.
North American sales fell 17.2%, reflecting weaker consumer demand and reduced business with mass merchants. Sales in Europe, the Middle East and Africa declined 11.5% to €801.2 million, as wholesale business weakened amid subdued European demand. Asia-Pacific sales rose 10.0% to €394.6 million, driven by strong demand for low-profile sneakers.
Gross margin increased to 49.5% from 45.4% a year earlier, benefiting from lower sourcing prices and the tariff refund, and exceeding analysts' 48.6% forecast.
Operating costs excluding one-time items rose 6.7% to €900.0 million, as higher online and store expenses, marketing and IT costs outweighed savings from the cost-cutting programme.
Puma narrowed its 2026 operating loss forecast to between €80 million and €130 million, from a previous range of €50 million to €150 million. Analysts' average forecast was a loss of €99.6 million. The company maintained its outlook for a low- to mid-single-digit percentage decline in constant-currency sales.
Jefferies, which rates Puma shares "hold" with a €23.50 price target, said the revised guidance "may reflect efforts to provide as clean a base as possible for 2027."
Free cash flow was €92.0 million, compared with an outflow of €43.0 million a year earlier. Inventories fell 24.3% to €1.61 billion, with Jefferies describing the reduction as "the one encouraging feature" and saying stocks were already below its target for the end of the year.
ANTA Sports became Puma's largest shareholder in October. Dennis Tao was elected chairman of the company's supervisory board on Oct. 21.
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