Puma thinks its Palermo sneakers might be this year's Adidas Samba

• Puma posted quarterly earnings on Wednesday that pushed shares 12% higher.
• The German sportswear giant flagged rising demand for its Palermo sneakers.
• The "terrace" trend has helped boost sales for Puma and arch rival rival Adidas in recent years.

Puma touted rising demand for its retro terrace-style range on Wednesday as it posted first-quarter earnings that were in line with analysts' expectations but still sent shares soaring.

The German footwear giant's net income and earnings per share fell for the three months ending 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 major currency headwinds," with the soaring US dollar causing the euro to weaken this year.

In a news conference, CEO Arne Freundt flagged rising demand for the Palermo, which was commonly worn on European soccer terraces in the 1980s.

Puma relaunched the footwear line last year, tapping up high-profile celebrities including pop superstar Dua Lipa and Manchester City FC winger Jack Grealish to promote the retro shoes.

"We are only six months now in the market with the Palermo, and we see how the franchises are continuing to grow in strength," Freundt said.

Soaring demand for a similar terrace-style shoe sold by Adidas, the Samba, was one of the defining fashion stories of last summer, although the Puma rival recently said it would work to manage demand in a bid to stop the brand becoming a victim of its own success.

Last month, UK Prime Minister Rishi Sunak was widely mocked after attending an interview wearing a pair of Sambas, causing some Britons to conclude that the trend was dead.

"Anybody in the world can wear our product and I'll be happy if they wear it," Adidas CEO Bjørn Gulden said on an earnings call last week, in response to a question about Sunak's choice of footwear.

Shares in Puma, which is listed in Frankfurt, jumped just over 12%, wiping out this year's losses and valuing the company at about $8 billion.

However, that pales in comparison with Adidas, which is worth about $43 billion after the stock rose 22% so far this year.