Previously, PUMA and United Legwear Company LLC had a partnership, PUMA United, which focused on the sale of these products in the U.S. and Canada. PUMA held a 51% capital share in PUMA United. The products sold by PUMA United were manufactured, transported, and stored by United Legwear and its suppliers.
The move from a partnership to an exclusive licensing agreement is part of PUMA’s strategic initiative to reduce complexity within its operating model in North America and sharpen the focus on its core business in the region. It further solidifies the continued close partnership between PUMA and ULAC which has existed for 25 years. As outlined during its third-quarter results on October 30, PUMA is executing a reset and is optimizing its distribution network. At that stage, PUMA had already said it was considering a shift to a licensing model with United Legwear. Financial details of the new licensing agreement with United Legwear are not disclosed.
This transition to a licensing model aligns with market practices in North America, where the production and sale of such products are typically licensed to third parties. Through this shift, PUMA aims to create a leaner, more efficient business model while maintaining a strong brand presence in these categories via its valued long-term licensing partner. The transition also enhances transparency for investors and the capital market by enabling clearer financial reporting.
As a result of this change, PUMA United will be classified as a discontinued operation in PUMA’s financial reporting from November of 2025 onwards. Accordingly, current year and prior-period figures will be restated, with PUMA United’s results, assets, and liabilities presented separately from continuing operations. Sales generated by the partnership amounted to €427.9 million, while net earnings attributable to non-controlling interests were €60.7 million for the 2024 financial year. For additional information regarding disclosures on non-controlling interests, please refer to page 315 of the PUMA Annual Report 2024.