By Ozan Ergenay
Oct 30 (Reuters) - Puma reported quarterly sales slightly above market expectations and flagged a sharp reduction in its inventories on Friday, reassuring investors about the German sportswear maker's cost-cutting progress and partnership with Chinese retail giant Anta Sports.
Puma, which is attempting to reboot its brand appeal to better compete with larger rivals Adidas and Nike, has been grappling with weaker demand and elevated inventory levels at sporting goods retailers through
which it generates most of its sales.
The company's third-quarter sales fell 5% to €1.77 billion ($1.98 billion), but exceeded analysts' average forecast of €1.75 billion. Inventories fell 24.3% to €1.6 billion due to lower purchasing volumes.
"Perhaps the one encouraging feature today is a reduction in inventory levels to already below the target expected by the end of this year," Jefferies analysts said in a note.
Puma's shares rose around 8% by 0900 GMT, on track for their best trading day since February.
UBS analysts said investors should find the results reassuring, as they suggest Puma remains on track to normalise inventory levels by year-end despite the challenging market environment.
Puma also narrowed the guidance range for its 2026 operating result, seeing a loss of €80 million to €130 million instead of the earlier range of €50 million to €150 million.
"We need to see more confidence on the 2027 and mid-term outlook at some stage," Deutsche Bank said in a note to clients.
Puma is investing in advertising to boost its brand and pursuing efforts to improve its credentials as a performance sportswear maker, particularly in running, where it has worked on its shoe technology.
ANTA PARTNERSHIP
Earlier in 2026, China's biggest sportswear brand Anta Sports struck a deal to buy an around 29% stake in Puma from the Pinault family for €1.5 billion, becoming the company's largest shareholder. The acquisition was completed in October.
Puma's CEO Arthur Hoeld told reporters that the Anta partnership represented an opportunity for Puma to grow in China, even as wholesalers cut orders awaiting clarity on the collaboration.
"We reached out to Anta as our partner to define our future operating model in China," Hoeld said in the press call.
($1 = 0.8930 euros)
(Reporting by Ozan Ergenay in Gdansk and Alessandro Parodi in Paris, editing by Milla Nissi-Prussak)
