EXEC: Puma Earns Stock Upgrade as Anta Partnership Seen Boosting China Sales

Why It Matters

The deal gives Puma a credible growth engine in China, the world’s largest sports‑apparel market, and could boost earnings enough to narrow the gap with Nike and Adidas.

Key Takeaways

• Anta invested $1.8 bn for 29.06% stake in Puma.
• Citi forecasts 36% China sales CAGR FY26‑28, constant‑currency.
• Puma sales projected 6% above consensus FY27, 13% FY28.
• Expected margin expansion: 240 bps FY26, 50 bps FY27, 140 bps FY28.
• DTC focus and Anta partnership to drive higher‑margin growth.

Pulse Analysis

06 percent stake in Puma, the German sportswear maker. While Anta stopped short of a full takeover, the deal secures a seat at Puma’s supervisory board and creates a conduit for the German label to tap Anta’s extensive distribution network across mainland China, Hong Kong and Macau. For Anta, the partnership adds a premium Western brand to its portfolio, complementing its ownership of Fila and a stake in Amer Sports, and strengthens its bid to challenge Nike and Adidas in the world’s biggest consumer market. Citi Research now rates Puma a ‘Buy’, projecting a 36 percent compound annual growth rate for Chinese sales on a constant‑currency basis between fiscal 2026 and 2028.

The analyst’s model lifts Puma’s overall revenue forecast by 6 percent in FY27 and 13 percent in FY28 relative to consensus estimates. Such acceleration would outpace the average growth of Puma’s APAC peers and could narrow the gap with Nike and Adidas, whose China exposure remains constrained by pricing pressure and inventory challenges. The upside hinges on Anta’s ability to translate its retail clout into shelf space and brand visibility for Puma.

Beyond top‑line momentum, Puma is poised for a meaningful margin rebound. Citi expects gross margin improvement of 240 basis points in FY26, followed by incremental gains of 50 and 140 basis points in FY27 and FY28 respectively, driven by a higher‑margin direct‑to‑consumer mix, favorable foreign‑exchange dynamics and reduced promotional spend. The DTC push aligns Puma’s channel profile with industry averages and leverages Anta’s e‑commerce platforms, which have shown resilience amid freight cost volatility. If realized, the combined sales and profitability lift could reposition Puma as a more attractive growth story for investors seeking exposure to the fast‑growing Chinese sportswear market.