Under Armour shares soar as earnings beat prompts retailer to hike annual outlook

Under Armour shares soared in premarket trading Tuesday as strong fiscal third-quarter earnings revealed the athletic apparel maker is seeing progress in improving its brand image under CEO Patrik Frisk.

With heightened demand for its sneakers and sweat-wicking clothing, Under Armour said it now anticipates sales will rise 25% from 2020 levels, topping its prior outlook.

The company's stock was recently up around 9%.

Here's how Under Armour did compared with what analysts polled by Refinitiv were expecting:

  • Earnings per share: 31 cents adjusted vs. 15 cents expected
  • Revenue: $1.55 billion vs. $1.48 billion expected

Net income for the three-month period ended Sept. 30 rose to $113.4 million, or 24 cents per share, compared with $38.9 million, or 9 cents a share, a year earlier. Excluding one-time items, Under Armour earned 31 cents per share, more than double the 15 cents per share that analysts expected.

Revenue rose 8% to $1.55 billion from $1.43 billion a year earlier. Analysts had anticipated sales of $1.48 billion.

Wholesale revenue rose 10% while direct-to-consumer sales were up 12%. Online sales were down 4% from the prior year, as pandemic-fueled e-commerce activity slowed.

Sales in North America were up 8% while international revenue was up 18%. Within Under Armour's international segment, sales were up 19% in Asia-Pacific, up 15% in its Europe, Middle East and Africa division, and up 27% in Latin America.

For fiscal 2021, Under Armour said earnings per share will reach about 74 cents, on an adjusted basis, compared with its prior estimate of 50 cents to 52 cents.

Revenue is estimated to rise about 25%, compared with its previous forecast for an increase in the low twenties.

Under Armour shares are up about 28% year to date, as of Monday's market close. The company has a market cap of $10.3 billion.

Find the full earnings press release from Under Armour here.

This story is developing. Please check back for updates.

Source: Read Full Article