Puma Steps Up in North America: Licenses Underwear Business to Local Partner

Puma is changing its strategy in the North American market. The German fashion and sports equipment group has signed an agreement with its local partner, United Legwear Company (ULAC), to license its business in the United States and Canada. ULAC was until now Puma’s partner in these two countries, a business that was operated through the company Puma United, controlled by Puma 51% and ULAC 49%.

The agreement, which came into force on November 1st, enables ULAC to sell socks, underwear and children’s fashion under the Puma brand in the two North American countries. Until now, Puma United products were manufactured, transported and stocked by ULAC and its suppliers. The business now franchised by Puma in the U.S. and Canada amounts to $427.9 million, while net attributable profit in 2024 was $60.7 million.

The move from a joint venture to an exclusive licensing agreement “is part of Puma’s strategy to reduce the complexity of its North American operating model and moves the focus to its core business in the region.“ The agreement, Puma has noted, also fortifies an agreement between Puma and ULAC that has been in place for 25 years.

Puma closed the first nine months of 2025 with a sales decline of 8.5% to €5,973.9 million

Puma is aligning itself with this agreement to market practices in North America, says the company, where “the production and sale of products are often licensed to third parties.“ With this change, Puma is seeking a leaner and more efficient business, while maintaining “a strong brand presence with these categories through a long-term licensing agreement.“

At the end of October, coinciding with the presentation of results for the first nine months of the year, Puma announced the layoff of 900 head office employees. The staff adjustment follows years of languishing with a brand dependent on the whims of fashion rather than sports results.

The German company ended the first nine months of the financial year with a drop in sales of 8.5%, to €5,973.9 million, and ended the same period with a loss of €308.9 million, compared to the €257.1 million it earned in 2024.