Maryland-based Under Armour also raised its earnings guidance for full year. As of 12:44 p.m. ET, shares of the company were up 4.58% to $23.05. The stock has gained more than 27% since the beginning of the year.
UAA Earnings & Outlook
Under Armour had net income of $22.5 million, or $0.05 per share in the first quarter of 2019, compared with net loss of $30.2 million, or $0.07 per share in the same period last year. Analysts were expecting the company to report a loss of $0.01 per share.
Sales came to $1.2 billion, an increase of 2% from $1.19 billion in the earlier-year period. Analysts had been calling for sales of $1.18 billion based on figures compiled by Refinitiv.
Revenue in its North America segment declined 2.8% during the quarter to $843.2 million, while revenue in its Latin American division grew 5.7% to $49.2 million. Asia Pacific segment saw revenue jump 24.9% in the three ended March 31, 2019 to $144.3 million, while EMEA division was up 3.5% to $134.1 million.
Apparel sales rose 1% to $775 million, while footwear business revenues inched up 8% to $293 million boosted by running sneakers. Meanwhile, accessories revenues dropped 11% in the quarter in part because of weaker-than-expected sales of bags and backpacks.
For the full year, Under Armour hopes to report earnings of between $0.33 to $0.34 per share, compared with its earlier guidance for earnings of $0.31 to $0.33 per share. Management also expects operating income to between $220 million and $230 million in fiscal 2019, while its revenue outlook is for growth of 3% to 4%.
Under Armour CEO Comments
Under Armour Chairman and Chief Executive Officer Kevin Plank commented, “Our first quarter results demonstrate our unwavering commitment to protecting and growing our premium performance athletic brand through a disciplined go-to-market process that delivers innovative products and experiences to make athletes better. As we execute against our long-term plan, Under Armour will emerge from 2019 and our ‘Protect This House’ chapter as an even stronger brand and company.”
Under Armour Profile
Under Armour markets athletic apparel, footwear, and gear and owns technology assets in Connected Fitness. The brand made its name by developing performance apparel made of synthetic microfiber, designed to wick perspiration away from the skin and help regulate body temperature.
Although Under Armour is primarily a wholesaler to sporting goods retailers, it also operates 236 factory-house stores and 83 brand-house stores across the globe. Roughly 25% of total revenue is generated outside the U.S., including in Europe, Japan, and China.