Puma SE's (PMMAF) stock gained Tuesday after the sportswear group reported a better-than-expected start to the year with footwear driving growth.
Puma saw sales increase by 15% on a constant currency to €1.005 billion, in its first-quarter earnings released Tuesday, with footwear growing by 24.9% compared with the same quarter last year. The company saw its biggest growth in the Americas, with sales increasing by 17% in the quarter to €346.5 million.
"For the first time in the PUMA history, we achieved sales exceeding € 1 billion in a quarter," CEO Bjorn Gulden said in a statement. "Our EBIT also developed very positively with a growth of 70% to €70 million. This stronger than expected start of the year further shows that PUMA is on the right path."
Puma shares gained 1.39% in Frankfurt to change hands at €364, extending a three-month increase of 27.94%.
Puma now expects currency-adjusted sales in the full year to grow at a low double-digit percentage rate. The sportswear company earlier in April said it expected sales for the full year to increase by high-single digits.
The operating result is now anticipated to come in between € 185 million and € 200 million up from between € 170 million and € 190 million. Management still expects net earnings will improve significantly in 2017.
Puma is owned by luxury group Kering, which also reported on Tuesday.
U.S. sports shoe makers have been under pressure and sportswear retailers have felt the pinch due to a delay in tax refunds.
Foot Locker (FL) - Get Foot Locker, Inc. Report last week issued a surprise profit warning, saying first quarter sales were "significantly" impacted by delays in consumers getting back their income tax refunds.
In comparison to Puma, Under Armour's stock has fallen 46.56% over the past 12 months as retail headwinds like the closure of The Sports Authority, and the subsequent liquidation sales that flooded the market with discounted items, took a toll on the bottom line. The company broke its own impressive streak of 26 consecutive quarters of at least 20% revenue growth, reporting growth of just 12% in the fourth quarter.
Not helping matters for Under Armour: backlash by noted brand spokespeople such as NBA star Stephen Curry and actor Dwayne "The Rock" Johnson to pro-Trump comments from Under Armour founder Kevin Plank.