FRANKFURT, Germany — Puma SE’s first-quarter profit almost doubled as the German sports apparel maker raised prices and sold fewer goods at a discount, bolstering its turnaround plan.
Net income jumped 92 percent to €50 million ($54.4 million), the company said Tuesday, less than two weeks after raising its full-year earnings forecast. More efficient sourcing also provided a boost.
Puma is in the fourth year of a turnaround, balancing sportswear and street styles with the help of endorsements from celebrities including singer Rihanna and sprinter Usain Bolt. While profitability is still a far cry from the record levels the company achieved more than a decade ago, revenue in the quarter topped 1 billion euros for the first time.
The “strong brand momentum” will help bring “a more normalised level of profitability” to the company, Berenberg analysts Zuzanna Pusz and Mariana Horn said in a note.
Puma shares rose 2.5 percent to €368 at 9.50 a.m. in Frankfurt.
The company also said Tuesday it will sponsor French soccer club Olympique de Marseille, having signed a similar deal with Germany’s Borussia Monchengladbach earlier this month.
By Richard Weiss, with assistance from Heather Burke; editors: Eric Pfanner and Paul Jarvis.