Puma SE on Tuesday reported 101.2 million euros ($119 million) in earnings before interest and tax, spurred by brisk sales and improved profit margins over the third quarter.
Gross profit margin improved by 230 basis points to 48.1 percent, the sportswear company said, citing improvements in sourcing, sales of higher-margin products and price adjustments as helping the company boost its performance despite currency headwinds.
Operating expenses rose 11.4 percent over the period, due to higher marketing, selling and retail expenses, Puma said.
The company, which recently added Selena Gomez to its roster of brand ambassadors including Rihanna and Usain Bolt, last week raised its guidance as it reported a 13 percent rise in third-quarter sales. Revenues totaled 1.12 billion, up 17.4 percent when adjusted for currencies, with fast growth in all regions.
The Herzogenaurach, Germany-based company targets a 14 to 16 percent rise in sales for the year, adjusted for currencies, as well as a significant improvement in net earnings.