Puma SE reported net profit advanced 92.2 percent in the first quarter of 2016 versus the same prior-year period.
The German sporting goods maker’s net earnings reached 49.6 million euros, or $52.8 million, in the three months ended March 31. Meanwhile, its gross margin — a key indicator of profitability — gained 30 basis points to 47.1 percent from 46.8 percent. Earnings before interest and taxes rose 70.1 percent to 70.2 million euros, or $75 million.
Boosted by strong sell-throughs driven by footwear, Puma said it got off to a better than expected start to the year, surpassing the 1 billion euros, or $1.1 billion, in sales in a quarter for the first time in the company’s history. Revenues rose 18 percent, driven by all regions, which posted double-digit gains.
Dollar figures are converted at average exchange for the period to which they refer.
Earlier in the month, Puma had raised its sales outlook for 2017 to a low double-digit percentage rate increase in currency-adjusted terms, up from high single digits.
Puma’s full-year earnings before interest and taxes are now anticipated to fall between 185 million euros and 200 million euros, or $196.1 million and $212 million at current exchange, up from the previous guidance of 170 million euros to 190 million euros, or $180.2 million to $201.4 million.
Management at the company controlled by French group Kering maintains net earnings will improve significantly in 2017.