Puma The 75-year-old German sportswear brand is entering its most vulnerable period in a decade, with its market value falling nearly 56% since the start of the year. Facing intense competitive pressure, the company has declared a “year of reset” alongside a large-scale recovery plan, while sales continue to decline and U.S. tariffs erode profits, leading the company to anticipate losses this year.
This deteriorating situation has created a significant opportunity attracting interest from Asian investors, especially “Anta Sports” from China, which is reportedly considering acquiring Puma, along with Li Ning a Chinese sportswear brand, and some private equity funds that plan to collaborate on the bid.
Puma’s shares closed up 18.9% on Thursday after reports that Anta Sports, a Chinese sportswear giant, is among several companies considering acquiring the German brand amid its ongoing recovery.
Puma’s shares have dropped more than half since the beginning of the year amid fierce competition in the sportswear market and the impact of import tariffs that have pressured consumer spending. Emerging brands like On Running and Hoka have grown rapidly, capturing market share from Puma, while established rivals Adidas and Nike remain strong, especially in high-performance and increasingly popular streetwear lines.
Data from LSEG shows Puma’s market value at 2.52 billion euros, roughly 2.92 billion U.S. dollars, while Anta’s market value is around 30 billion U.S. dollars. Asics stands at 17.9 billion U.S. dollars, and Li Ning at about 6 billion U.S. dollars.
Amid declining sales, Puma’s board dismissed CEO Arne Freundt last April, appointing Arthur Hoeld —a former Adidas sales executive—as his replacement. Hoeld revealed a recovery plan including reducing promotions, cutting product lines, adjusting distribution channels, improving marketing strategies, and enhancing cash flow and operational cost efficiency. This included cutting more than 900 corporate jobs to accelerate cost reduction measures aimed at making the business stronger and more resilient.
Hoeld stated that Puma will incur losses this year but expects to return to growth in 2027 after a “transition” year in 2026. He also aims to restore Puma to a “Top 3 global sports brand,” despite recent quarterly sales still falling in double digits. However, analysts view this plan as similar to previous leadership efforts and possibly insufficient to drive significant change.
Currently, Puma is undergoing a business reset after a sharp sales slowdown. Although revenues increased during the COVID-19 pandemic, post-pandemic the brand has struggled with declining appeal and high inventory levels. In early November, shares continued to fall to 19 euros, the lowest in over 10 years, with cumulative losses exceeding 50% since the start of the year amid intensifying competition and tariff pressures undermining consumer confidence.
The company recently stated that its key challenges are weak brand momentum, declining demand, and high inventory. Puma cut its 2025 earnings forecast in July, now expecting sales to decline in double digits instead of previously projected single-digit growth. It also anticipates an operating loss in 2025, reversing earlier estimates of profits between 445 and 525 million euros, due to the impact of tariffs.
Puma’s largest shareholder, Artemis (the holding company of the Pinault family, owners of Kering and major shareholders of Gucci), which holds 29%, has confirmed it will not sell shares at current market prices, though all options remain under consideration. This complicates any acquisition deal. Artemis is also undergoing a major investment expansion, rapidly increasing its debt, which could pose a significant obstacle to a deal with widely differing valuations.
Reports indicate that Puma is also attracting interest from other major sportswear companies, including China’s Li Ning and Japan’s Asics. Li Ning stated by email that “there are currently no negotiations or evaluations of any agreements” as reported, while Asics did not respond to interview requests.
For Anta, acquiring Puma could serve as a “gateway to Western markets,” according to analysts at Metzler, who noted Anta’s strong track record in revitalizing struggling global brands like Amer Sports (owner of Salomon and Arc’teryx). Moreover, buying Puma could be a shortcut to expanding in Europe and the U.S., regions where Anta currently has limited influence.
However, Anta is already expanding internationally through its stake in the Amer Group, so it must assess how much strategic value Puma would add. With Puma’s share price having fallen over 50% this year, the deal may represent an opportunity to acquire a discounted asset and rebuild it—a strategy Anta is well known for.
Anta’s manufacturing network in China, distribution channels, and brand revitalization expertise could significantly reduce costs and boost Puma’s efficiency. If the acquisition succeeds, this deal could be a major driver propelling Anta into the top tier of the market and mark a significant turning point for the global sportswear industry, with Chinese companies rising to lead alongside established legacy brands.
Source information CNBC
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