Puma streamlines North America distribution through licensing partnership with United Legwear

German sportswear company Puma SE is implementing a new distribution model for specific product categories in North America as part of its ongoing reform efforts.

On Tuesday, the company announced an extension of its long-standing licensing partnership with the US textile manufacturer United Legwear Company LLC. As part of the agreement, United Legwear will now also manage the distribution of Puma products in the socks and underwear categories, as well as children's clothing and accessories, in the US and Canada.

United Legwear has long been a production and logistics partner for Puma for the relevant product groups in North America. However, distribution in the region was previously handled by a joint venture between the two companies called Puma United, in which the German sportswear manufacturer held a 51 percent majority stake.

Following the transition to a full licensing model, which took effect on November 1, Puma will now classify the former joint venture as a discontinued operation in its financial reporting. In the 2024 financial year, Puma United generated a turnover of 427.9 million euros, according to the company. The profit attributable to non-controlling interests amounted to 60.7 million US dollars.

With this newly announced measure, Puma aims to create “a leaner, more efficient business model while maintaining its strong brand presence in these categories with its long-standing partner,” according to the company. The “transition to a licensing model” is also consistent with “common practice in North America, where the production and sale of socks and underwear are typically licensed to third parties.” The move is driven by the company's desire to “reduce the complexity of its business model in North America and focus more on its core business in the region.”

This article was translated to English using an AI tool.

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