Adidas-Puma Merger: A Game-Changer for the Athletic World?

Nothing is confirmed, but signals have been flying around the market for months. In Tuesday’s trading session, Puma shares soared in anticipation of a possible corporate operation. A few weeks earlier, the Pinaults (the company’s historic owners) had discussed the sale of their stake in Puma, pressured by the poor performance of their main asset, Kering. A year after Puma and Adidas, historic rivals, put aside their quarrels to celebrate their centenary together, rumors of a possible merger between the two companies sound louder than ever.

On Tuesday, Puma shares soared nearly 5% in anticipation of a possible takeover by Adidas. The rumors stem from an interview given to the German newspaper Handelsblatt by Roy Adams, co-founder of Metronuclear. Puma is in a state of emergency,“ he said, “if the management team fails, a merger with Adidas would be the best option.

The purchase of Puma by Adidas would mean the union of two of the world’s leading sports equipment brands, which also have a common origin. The brothers Adolf and Rudolf Dassler started working together in the family shoe business, but the outbreak of World War II caused them to drift apart, to the point that one, Rudolf, ended up launching Puma and, a year later, Adolf registered Adidas.

“Puma is in a state of emergency; if the management team fails, a merger with Adidas would be the best option,“ says the co-founder of Metronuclear

With Puma in the doldrums, and Adidas seeing the light of day after some difficult years (partly due to the failed venture with Kanye West), a merger between the two companies would not change the ranking of the world’s largest sports equipment companies, but it would strengthen Adidas in its pursuit of Nike. It would also come at a time of maximum harmony of management styles, as the CEO and COO of Puma come precisely from Adidas.

With a turnover of €23.683 billion in 2024 for Adidas and €8.817 billion for Puma, the resulting company would total a business of €32.500 billion, closer to the $46.309 billion of Nike, the undisputed giant of the sports industry, although also undergoing restructuring.

In terms of turnover, Adidas is the second largest private label sports equipment company in the world, followed by Lululemon (with $10.588 billion in revenues) and Puma. If the distribution groups (Decathlon, Intersport, JD Sports and Dick’s) are taken into account, Lululemon and Puma drop four places in the ranking.

Together, Adidas and Puma would concentrate in the same company some of the classic sneaker models ( one of the business lines that has grown the most among the brands in recent years) with the greatest market penetration. Adidas would contribute the Gazelle, the Samba or the Superstar, while Puma would add the Suede, the Club Era or the Speedcat. Originals was, in fact, one of the star categories of the Adidas footwear division in 2024, which achieved 26% growth.

Adidas is the second largest private label sports equipment company in the world, followed by Lululemon and Puma

Although both Nike and Adidas are insisting on highlighting the technicality of their products in their conversion plan, Puma would bring its rival closer to fashion, as it is one of the sports brands that has bet more on this territory in recent years, which makes it gain positioning but also more dependent on trends.

Puma closed the first half of 2025 in the red by €246.6 million (compared with a profit of €129.3 million for the same period in 2024) and a 1% drop in sales. For 2025 as a whole, it has already anticipated that it will close at a loss and has cut its sales forecasts. Adidas, on the other hand, ended the first half more than doubling its net income and raising its revenues by 7.3%, although the company has warned about the impact of tariff changes on its results.

A sector upside down

A hypothetical corporate transaction with this impact would add even more chaos to the sports equipment segment. After booming during the pandemic thanks to the rise of sports and more relaxed lifestyles and fashion, the global sports equipment industry is now facing a slowdown in its growth rate.

Against a backdrop of weak sales, the playing field is being redrawn, with giants such as Nike and Adidas losing penetration to younger brands. According to McKinsey data, the two biggest brands in the sector, Nike and Adidas, will lose around three points of market share in 2019 and 2024. At the end of 2024, Nike and Adidas accounted for 24% of total sports equipment sales, while 76% was accounted for by operators such as Lululemon, On, Acr’teryx and Hoka. In 2022, the two giants accounted for 26% and in 2019, 27%.

Corporate transactions have become commonplace in the segment in the last fiscal year, with notable deals such as the purchase of Skechers by 3G Capital for $9.4 billion or that of Helly Hansen by Kontoor (owner of Lee and Wrangler) for $900 million.

The big movement of the year took place in the field of sports equipment distribution. The US group Dick’s took over its great rival, Foot Locker, for $2.4 billion.