Anta Horse Year Purchase of "Horse" Creates Complications? Puma Welcomes Powerful Secondary Shareholder

Buying a “horse” in the Year of the Horse has a sequel. German sports brand PUMA (Puma) recently welcomed its second-largest shareholder. The UK fashion retail group Frasers Group, controlled by billionaire Mike Ashley, has acquired nearly 6% of Puma’s shares, making it the second-largest shareholder after Chinese sportswear group Anta Sports. Its subsidiary, Sports Direct, is Puma’s core retail channel in Europe. Frasers Group’s entry at this time places it between Anta and Puma’s brand management, potentially evolving into a game over brand positioning, corporate governance, pricing strategies, and channel distribution.

Puma’s full-year and Q4 2025 financial reports show that due to strategic restructuring measures, annual sales decreased by 13.1% year-over-year to €7.3 billion (about RMB 59.2 billion), a fixed exchange rate decline of 8.1%. All regions and product segments experienced sales declines. The full-year gross profit margin fell by 260 basis points to 45.0%, operating profit turned negative with €357 million, and net loss reached €646 million (about RMB 5.2 billion). In Q4, sales declined 27.2% YoY to €1.565 billion, a 20.7% decrease at fixed exchange rates.

Regionally, EMEA declined 9.6% to €3.143 billion, the Americas fell 17.9% to €2.558 billion, and Asia-Pacific, including China, dropped 11.7% to €1.595 billion. However, direct operations in Greater China grew 10% YoY, marking nine consecutive quarters of growth. China is one of Puma’s most important strategic markets. In 2025, Puma accelerated its “sports” and “fashion” dual strategy in China, investing continuously in sports technology, product innovation, and retail experience to engage Chinese consumers’ sports and fashion lifestyles.

The financial report states that throughout 2026, Puma will continue streamlining its distribution network and further reducing inventory levels. It has already recovered a large volume of products from channels and plans to clear inventory by 2026. Cost efficiency measures launched last year will continue, including further product portfolio simplification and completing a plan to cut about 1,400 jobs since early 2025. Puma CEO Arne Freundt said that during this transition, Puma’s key task is to prepare for long-term success, ensure financial stability, and lay the foundation for profitability recovery in 2027.

“2025 is a year of restructuring for us. We aim to position Puma among the top three global sports brands, restore above-industry growth, and generate healthy profits in the medium term. The key is to reduce the over-commercialization of the Puma brand and ensure we can once again excite consumers with attractive products, compelling storytelling, and distribution through the right channels.” The product strategy will focus on: the football category centered around the 2026 World Cup; the running category driven by the NITRO platform; and strengthening brand heritage and storytelling through the Sportstyle category.

According to Southern Metropolis Daily earlier reports, on January 27, Anta Sports reached an agreement with Artémis S.A.S. to acquire 29.06% of Puma’s shares for €1.506 billion (about RMB 12.278 billion), expected to be completed by the end of 2026. After the deal, Anta will become Puma’s largest shareholder. This transaction is seen as Anta’s successful maneuver following its acquisitions of FILA and Amer Sports, marking a key move in the global sports goods landscape. However, over a month later, on March 6, UK retailer Frasers Group announced it had acquired 5.77% of Puma’s shares, ranking second after Anta.

At the earnings conference, regarding the impact of Anta becoming the largest shareholder, Puma CEO Arne Freundt responded: “Puma’s China market business was slightly below €500 million in 2025. The business structure there is opposite to the global situation—about 70% through DTC channels and 30% wholesale. With Anta’s involvement, we expect Puma’s distribution model to possibly shift further toward DTC in the future. The potential result could be some wholesale partners not renewing contracts, but the mid- to long-term benefits will far outweigh these short-term fluctuations.”

Mike Ashley

Frasers Group is controlled by UK billionaire Mike Ashley, known for his aggressive style and dubbed the “vulture” of UK retail. He has long used shareholdings to strategically position himself in multiple retail and fashion companies, including ASOS and Hugo Boss. The group has often used minority stakes as leverage to influence companies to adopt its sales channels. Sports Direct is one of Europe’s largest retail chains, often leveraging scale to pressure suppliers on wholesale prices. Industry insiders believe Ashley is keenly aware that Puma’s existing distribution profit chain will be restructured. His shareholding allows him to exert influence and secure favorable long-term supply agreements.

Puma expects sales in 2026 to decline in the low to mid single digits (fixed exchange rate basis), with operating profit projected between -€50 million and -€150 million. Nonetheless, Puma remains a valuable brand asset, with strong brand recognition, product diversity, and global influence. Anta, leveraging its operational expertise, channel optimization, and supply chain background, is expected to accelerate Puma’s brand transformation and revival, while also supporting Anta’s global expansion. Now, with the “reform” turning into “uncertainty,” whether Puma and its two major shareholders can collaborate effectively will be crucial to the brand’s future trajectory.

Southern Metropolis Daily Video Reporter Wang Xin