Puma is making some changes to its partnership with United Legwear Co.

According to the German sportswear brand, it has moved from a business partnership to a licensing agreement structure with its long-term partner for socks, underwear, children’s apparel and accessories. Financial details of the new licensing agreement with United Legwear were not disclosed.

Previously, Puma and United Legwear Company’s partnership, dubbed Puma United, focused on the sale of these products in the U.S. and Canada. As part of the partnership, Puma held a 51 percent capital share in Puma United. The products sold by Puma United were manufactured, transported, and stored by United Legwear and its suppliers.

As a result of this change, Puma United will be classified as a discontinued operation in the company’s financial reporting from November 2025 onwards. Accordingly, current year and prior-period figures will be restated, with Puma United’s results, assets, and liabilities presented separately from continuing operations, the company said.

Sales generated by the partnership amounted to 427.9 million euros, while net earnings attributable to non-controlling interests were 60.7 million euros for the 2024 financial year.

When reached by FN for comment, a Puma representative confirmed that this transition to a licensing model “aligns with market practices in North America,” where the production and sale of mainly socks and underwear, but also including children’s apparel and accessories, are typically licensed to third parties.

The company added that the move from a partnership to an exclusive licensing agreement is part of Puma’s strategic initiative to “reduce complexity within its operating model in North America and sharpen the focus on its core business in the region.”

Through this shift, Puma noted that it “aims to create a leaner, more efficient” business model while maintaining a strong brand presence in these categories via its valued long-term licensing partner. The transition also “enhances transparency for investors and the capital market by enabling clearer financial reporting,” the company added.

In October, Puma logged a third-quarter sales drop of 10.4 percent as its new chief executive officer Arthur Hoeld also outlined his plans for the strategic reset.

Organic sales at Puma fell 10.4 percent in the third quarter to 1.96 billion euros. Earnings before income tax, or EBIT, also collapsed, with both adjusted and reported EBIT falling by more than 80 percent.

The German activewear firm cited a strategic “reset” as it navigates “several company-specific challenges, including muted brand momentum, elevated inventory levels across the trade and low quality of distribution.”