Puma's Brand Equity Faces Challenges Amid Strategic Shifts

Puma's brand value fell 38% to $1.2B in Germany, dropping 15 ranking spots. The company counters with major sports sponsorships, targeting UEFA Champions League ball supply.

The latest data on brand valuation presents a mixed picture for Puma. While the sportswear giant is aggressively pursuing new high-profile sponsorship agreements, its core brand value has suffered a significant contraction, according to a major industry study. This contrast underscores the challenges the company is navigating in what its management has already framed as a transitional year.

A Steep Decline in Brand Ranking

Findings from the comprehensive "Kantar BrandZ German Top 50" ranking reveal a stark downturn for Puma. The study, which draws from over 117,000 consumer interviews, shows the company's brand value plummeted by 38 percent to $1.2 billion. This collapse resulted in Puma tumbling 15 places to land at rank 48 within the German market. This decline occurs as the firm's leadership has designated 2026 as a period for fundamental realignment of its business model.

In response to this erosion, Puma is deploying an assertive sponsorship strategy. A notable example is a comprehensive partnership with handball club VfL Gummersbach, set to commence with the 2026/27 season. The deal extends beyond merely outfitting the professional team to include the club's academy and merchandising. In an unusual move, Puma CEO Arthur Hoeld will personally join the club's economic advisory board, assuming an active consulting role that transcends a traditional supplier relationship.

European Football: A Key Battleground

The company's ambitions are even more pronounced in European football. Industry reports indicate Puma is positioning itself as a potential successor to Adidas as the official match ball supplier for the UEFA Champions League. Adidas's current contract, which has been in place since 2001, is scheduled to conclude after the 2026/27 season. A potential new rights package could also include the Europa League and the Conference League.

Puma brings relevant experience to this pursuit. The group recently displaced Nike as the official ball supplier for the English Premier League and already provides match balls for Spain's LaLiga and Italy's Serie A. Securing the UEFA competitions would represent a major step in consolidating its market position across Europe—precisely the region where the brand study indicates the most significant need for improvement.

On the financial markets, Puma's shares are trading slightly below their 50-day average of €22.41 and have seen a modest decline since the start of the year. The effectiveness of these substantial sponsorship investments in halting the brand's decline will become clearer with the release of upcoming quarterly financial results.