Puma reported third-quarter sales of €1.77 billion ($1.98 billion), slightly surpassing market expectations despite a 5 percent decline compared to the same period last year. The German sportswear company highlighted a significant decrease in inventory levels, which has helped to reassure investors about its ongoing cost-cutting efforts and its strategic partnership with Chinese retail group Anta Sports.

The decrease in stock comes amid Puma’s broader initiative to revitalize its brand and enhance its competitiveness against larger industry players such as Adidas and Nike. The company has faced challenges with weaker consumer demand and elevated inventory levels within the sporting goods retail sector, its primary sales channel.

Jefferies analysts noted the inventory reduction as a positive development, pointing out that Puma’s stock levels have already fallen below the target set for the end of the year. This inventory management improvement is seen as a key step in improving Puma’s financial health and operational efficiency.

Puma’s efforts to align supply with demand and refine its global partnership network are central to its strategy to regain market share and strengthen profitability. The collaboration with Anta Sports, a major Chinese retailer, is viewed as an important factor in Puma’s plans to expand its presence in Asia and optimize its distribution.

While sales have declined year-over-year, the company’s ability to slightly outperform revenue forecasts and reduce excess inventory signals progress in addressing the challenges that have weighed on its performance. Puma continues to adapt to a changing retail landscape and shifting consumer preferences in the competitive sportswear industry.