Puma raises profit, sales guidance after strong first quarter

German sporting goods maker Puma lifted its profit and sales guidance for 2017 after posting strong first-quarter earnings in a surprise release on Wednesday that looked set to lift its shares 2.5 percent at market open.

Puma, majority-owned by French luxury-goods company Kering, said it expected earnings before interest and tax (EBIT) of 185-200 million euros ($196-$212 million) in 2017, up from a previous guidance of 170-190 million euros.

First-quarter EBIT jumped by about 70 percent to 70 million euros, it said.

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In February, Retro sneakers and endorsements by stars like Usain Bolt and Rihanna had already helped Puma deliver strong sales growth in the fourth quarter and make a confident forecast for 2017.

Chief Executive Bjorn Gulden has led a gradual turnaround of a brand that had fallen far behind market leaders Nike and Adidas.

It also said on Wednesday that sales would increase by a low double-digit percentage rate, when adjusted for currency swings, up from a previous guidance of a high single-digit percentage increase.

Puma plans to release full quarterly results on April 25.

($1 = 0.9422 euros)