China’s Anta Sports is reportedly looking to buy the firm

Puma shares jumped as much as 16% early Thursday following a report that China’s Anta Sports is among a number of firms looking to buy the struggling German athletic brand.

Puma is in the middle of what is calls a “reset,” as sales growth has dramatically dropped after a revenue bump during Covid-19. Post-pandemic, however, the brand has wrestled with fading customer resonance with customers and resulting high inventories.

Earlier this month, shares hit their lowest level in more than 10 years, while year-to-date losses amount to more than 50% amid an increasingly competitive sportswear market and tariffs hitting customer sentiment.

The company is now reportedly considering a buy-out, according to a report from Bloomberg citing unnamed sources. Hong Kong-listed Anta Sports is said to weigh a potential bid for the sportswear maker, the outlet reported.

Puma declined to comment and Anta Sports didn’t immediately to respond to a CNBC request for comment.

For Anta, acquiring Puma could be a gateway to the Western world, said Metzler analyst Felix Dennl, noting the Chinese company’s strong track record in turning around underperforming assets. “On the one hand, Anta already has broad-based international market exposure via its stake in Amer Group, hence the additional value add from Puma is expected to add to the portfolio is not completely clear,” he added.

Puma may also attract interest from Chinese apparel firm Li Ning and Japan’s Asics Corp, the Bloomberg report said.

“As of now, the company has not engaged in any substantive negotiations or evaluations regarding the transaction mentioned in the news,” Li Ning said in an emailed statement. Asics didn’t immediately respond to a request for comment.

Puma’s Frankfurt-listed shares were up 13.7% by 12:30 p.m. London time (7:30 a.m. ET).

Puma CEO Arthur Hoeld, who was appointed on July 1, is tasked with reviving the ailing brand. His turnaround plan involves cutting jobs, narrowing its product range, and improving marketing operations.

“At the end of July, we stated that 2025 would be a year of reset,” Hoeld said in a statement on Oct. 30. “Since then, we have taken important steps to clean up PUMA’s distribution, improve our cash management and reset our operational expenses. By expanding our cost efficiency programme, we are moving quickly to address challenges and make the business more efficient and resilient.”

The company also said it is aiming to establish itself as a “Top 3 global sports brand,” as it reported quarterly sales that fell on a double digit basis.

Puma acknowledged that key challenges included a muted brand momentum, U.S. tariffs, and high inventory levels.

In July, the company cut its 2025 guidance, saying its now expecting a sales decline at a low double-digit percentage rate, from a previous guide of sales growth at a low- to mid-single digit percentage rate.

It also said it expects to post an operating profit loss in 2025 — a huge swing from the previously expected profit of between 445 million euros ($516 million) and 525 million euros — due to the impact of tariffs.

Puma’s biggest shareholder is currently Artemis which holds a 29% stake in the company. Artemis — the holding company of France’s billionaire Pinault family as well as the largest shareholder of Gucci-owner Kering — has been on a spending spree and has seen its debt balloon.

Artemis’ valuation expectations for Puma may be a major hurdle to any transaction involving the athletic brand, Bloomberg reported.

— Karen Gilchrist contributed to this report.