Under Armour Inc. (NYSE: UA)
Shares of Under Armour Inc. jumped 2.5% to $21.30 Tuesday after the maker of athletic shoes and apparel posted upbeat fourth-quarter profits, and affirmed its full-year EPS and revenue guidance.
The Baltimore, MD-based company sold fewer discounted sneakers and slashed product sourcing costs during the quarter. Growing demand for its HOVR, Project Rock, and Curry 6 sneakers, helped the sportswear maker to reduce promotional discounts. The company also kept a closer hold on its inventory levels.
Under Armour said apparel sales rose 2% during the fourth quarter, driven by its training business. Footwear sales were down 4%, while accessories sales dropped 2%. UA stock has gained more than 50% in the last twelve months.
UAA Earnings & Outlook
Under Armour reported net income of $4.218 billion, or $0.01 per share for the three months ended December 2018. In the same period a year ago, the company had a loss of $87.9 million, or $0.20 per share. On an adjusted basis, the company reported earnings in the fourth quarter of 9 cents per share, surpassing the 4 cents Refinitiv consensus.
Revenue jumped 1.5% to $1.389 billion from $1.369 billion in the year-earlier period. Analysts polled by Refinitiv had called for revenue of $1.38 billion. Sales in the U.S. came to $965 million during the quarter, down 6% year-over-year. International sales were $395 million, up 28% on currency neutral basis.
Gross margin rose by 160 basis points to 45% from the same three months a year ago, thanks in part to lower air freight costs, product cost improvements, and lower promotional actions. Looking ahead, Under Armour expects 2019 revenue to grow of in range of 3% to 4% and earnings to be between 31 and 33 cents per share.
Under Armour CEO Comments
“Our 2018 results demonstrate significant progress against our multi-year transformation toward becoming an even stronger brand and more operationally excellent company,” said Under Armour Chairman and CEO Kevin Plank.
“As we look ahead to 2019, our accelerated innovation agenda, disciplined go-to-market process and powerful consumer-centric approach gives us increasingly greater confidence in our ability to deliver for Under Armour athletes, customers and shareholders.”
Under Amour Inc. 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