Under Armour Inc (NYSE:UA)
Under Armour stock is poised for a remarkable Tuesday session on the New York Stock Exchange after the footwear and sports apparel maker posted strong third quarter results. The company beat expectations on both profit and revenue before issuing a higher full-year profit forecast.
Total revenues jumped nearly 2.4% during the quarter, boosted by solid growth in its international operations. Shares of the company, which have risen nearly 26% year to date, were up 21.95% to $20.47 at 10:35 a.m.
Earnings & Outlook
The company reported net income of $75.3 million, up from $54.2 million, a year ago. On per-share basis, the company earned 17 cents, up 5 cents from the comparable period last year.
Adjusted for special items, the earnings came in at 25 cents per share. Analysts had forecast adjusted earnings of 12 cents per share, according to figures compiled by Refinitiv.
Third-quarter net revenues were $1.44 billion, an increase of nearly 2.4% from $1.41 billion a year ago, and ahead of expectations of $1.42 billion. International revenue was $351 million, up 15% from the comparable period last year, while North America came in at $1.1 billion, a decline of 2%.
Under Armour posted flat sales of $465 million from its own website and stores, while revenue from its wholesale channels $914 million, up 4%.
For the full year, the company boosted its adjusted earnings guidance to the range of $0.19 to $0.22 per share, compared with its earlier forecast of $0.16 to $0.19 per share.
Revenue is expected to grow 3% to 4% this year. The company expects footwear to grow at a rate in the low single digits and apparel at mid-single digits.
Under Armour CEO Comments
“Our third quarter results demonstrate that our multi-year transformation is on track,” commented Under Armour Chairman and Chief Executive Officer Kevin Plank.
“As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences. Coupled with increasingly greater business discipline and resulting efficiencies, we continue to gain confidence in our long-term path and ability to deliver for our consumers, customers and shareholders.”
Under Armour Inc Company Profile
Under Armour, Inc. engages in the development, marketing, and distribution of branded performance apparel, footwear, and accessories for men, women, and youth. It operates through the following segments: North America, EMEA, Asia-Pacific, Latin America, and Connected Fitness.
The North America segment comprises of U.S. and Canada. The Connected Fitness segment offers digital fitness subscriptions, along with digital advertising through its MapMyFitness, MyFitnessPal and Endomondo. applications. The company was founded by Kevin A. Plank in 1996 and is headquartered in Baltimore, MD. – CNN Money