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Upgrade your everyday wardrobe with comfortable, versatile clothing from Fabletics. Get 70–80% off your first order when you sign up to be a VIP: https://fabletics.com/MichaelGirdley Thanks to @fabletics for sponsoring this video! #fableticspartner Puma went from a global footwear powerhouse with billions in annual sales to reporting one of the worst losses in its history. In this business breakdown, I trace the rise and fall of Puma, from the Dassler brothers' family feud and the rivalry with Adidas to its fashion-driven comeback, leadership mistakes, and recent financial collapse. Here's how one of the world's most recognizable shoe brands repeatedly rebuilt itself, and why its latest turnaround may be its toughest yet. Looking to become a channel member to support our production and receive exclusive content? Sign up here: https://www.youtube.com/channel/UC-mfn4ibOC5ewLcpmgl0C4g/join Get the 2-minute cheat sheet for this video → https://girdley.com/youtube 👇 SUBSCRIBE for more business breakdowns https://www.youtube.com/@Michael-Girdley?sub_confirmation=1 ------------------------------------------------------------------ ► Get my weekly letter to business owners: essential insights to run, grow, and stay ahead in your business → https://links.girdley.com/newsletter-yt ► For sponsorships or inquiries please reach out to: [email protected] ► Do you have a hat I should wear in a video? Send it to us: [email protected] ► Free events on all things small business: https://links.girdley.com/lectures-yt ► Deep dives on businesses for sale: https://www.youtube.com/@AcquisitionsAnonymousPodcast ► Follow me on Twitter/X: https://x.com/girdley ------------------------------------------------------------------ The story of Puma begins with one of the biggest family rivalries in business history. Brothers Adolf and Rudolf Dassler built an athletic shoe company together before splitting in 1948 to create Adidas and Puma. Their rivalry fueled decades of competition, from Olympic sponsorships to World Cup deals. But while they battled for dominance in European football, Nike was taking over the American athletic footwear market. Puma's first major decline came from chasing sales through cheaper shoes and discount retailers like Kmart. The strategy damaged its premium image and cost it partnerships with retailers like Foot Locker. By the early 1990s, Puma faced collapsing sales and mounting debt. CEO Johan Zeitz turned things around by cutting costs, moving production to Asia, and repositioning Puma as a fashion brand. By 2007, the company had attracted a multibillion-euro investment from the luxury group behind Gucci. Under Bjørn Gulden, Puma regained relevance through partnerships with stars like Rihanna. In 2022, the company generated €8.5 billion in sales and €640 million in profit. But when Adidas recruited Gulden to lead its turnaround, the rivalry shifted. Adidas successfully revived classics like the Samba, while Puma struggled to generate the same demand for its Speedcat. Sales continued growing, but profitability declined as discounting and distribution problems returned. By 2025 and 2026, Puma was facing another major restructuring. New leadership identified excessive discounting, poor distribution, and brand overexposure as key problems. The company announced hundreds of job cuts and plans to reduce its reliance on discount retailers. Meanwhile, Adidas was thriving under Puma's former CEO, and Puma's longtime major shareholder sold its remaining stake to a Chinese conglomerate. Puma's rise and fall is ultimately a lesson in brand positioning, leadership, and competition. The company repeatedly sacrificed its premium image to chase short-term sales, only to face the same problems years later. For founders, operators, and investors, Puma shows how difficult it is to build lasting brand value and how quickly the wrong strategy can destroy it.

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