Puma's first-quarter sales met expectations, buoyed by a resurgence in the Americas, sparking a 12 per cent surge in its shares. The company, renowned for its revamped retro footwear like the Palermo, has tapped into the nostalgia trend of the 1970s and 80s, aligning with consumer preferences amidst restrained spending habits and retail inventory challenges.

CEO Arne Freundt expressed optimism, citing a robust order book for the year ahead, particularly highlighting a growing demand for their Palermo shoes. Market sentiments were further uplifted by Freundt's assurance of 2-3 per cent sales growth in the second quarter.

The shift in momentum comes amidst concerns raised by Hugo Boss' cautious outlook, signaling a potential short squeeze. Puma's strategic approach includes ramping up production of Palermo shoes while cautiously avoiding oversupply, echoing Adidas' recent management stance.

Analysts, recognizing Puma's belated but impactful foray into the terrace trend, anticipate sustained growth. Despite challenges posed by retail inventory clearance, Puma saw a 16.8 per cent reduction in inventories, setting the stage for further improvement.

Currency-adjusted sales reached 2.1 billion euros, with a notable upswing in the Americas, fueled by a resurgent US market. Puma's strategic investments in advertising and technology, evidenced by athlete Edna Kiplagat's recent podium finish at the Boston Marathon, underscore its commitment to reclaiming its status as a performance sportswear leader.

However, the running segment remains fiercely competitive, with emerging brands challenging incumbents like Nike and Adidas. Morningstar analyst David Swartz emphasized Puma's uphill battle in this crowded space, signaling the company's need for concerted efforts to expand its market share.