Puma Is a Legitimate Challenger in the Attractive Global Sportswear Market, but It Lacks a Moat

We view Puma as a leader in global activewear but do not believe it has achieved a competitive advantage. Since 2014, Puma’s annual sales have risen to more than EUR 8 billion from EUR 3 billion as the company has expanded distribution, introduced new products, and stepped up its marketing. At approximately 2.6%, the brand had the fifth-largest share (by sales) of the fragmented but attractive $396 billion sportswear market in 2023, according to Euromonitor. However, wide-moat Nike and narrow-moat Adidas are the leaders by wide margins in most regions, and we do not expect Puma will gain significant share on either. Moreover, the company faces threats from fast-growing competitors like narrow-moat activewear firms Lululemon, Anta, and Li Ning.