Puma touted growing demand for its retro terrace-style line on Wednesday, reporting first-quarter results that met analysts’ expectations but nonetheless sent shares higher.
The German footwear giant’s net profit and earnings per share fell in the quarter ended March 31, but its sales in the Americas rose for the first time in four quarters.
Puma also said its profit margins had improved “despite significant currency headwinds” as the surging US dollar had led to a weakening of the euro this year.
At a press conference, CEO Arne Freundt reported growing demand for the Palermo, which was commonly worn on European soccer fields in the 1980s.
Puma relaunched the shoe line last year, tapping high-profile celebrities including pop superstar Dua Lipa and Manchester City FC winger Jack Grealish to promote the retro shoes.
“We have only been on the market for six months with the Palermo and we see how the franchises continue to go from strength to strength,” Freundt said.
Growing demand for a similar patio shoe sold by Adidas, the Samba, was one of the defining fashion stories of last summer, although rival Puma recently said it would work to manage the request in order to prevent the brand from becoming a victim of its own success.
The Adidas Samba was popular last summer. Édouard Berthelot/Getty Images
Last month, British Prime Minister Rishi Sunak was widely mocked after attending an interview wearing a pair of Sambas, leading some Brits to conclude the trend was dead.
“Anyone in the world can wear our product and I will be happy if they wear it,” Adidas CEO Bjørn Gulden said on an earnings conference call last week, in response to a question about Sunak’s choice of shoes.
Shares of Frankfurt-listed Puma jumped just over 12%, erasing this year’s losses and valuing the company at around $8 billion.
However, that pales in comparison to Adidas, which is worth about $43 billion after the stock rose 22% so far this year.
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