Under Armour results beat quarterly estimates, lifts profit outlook
today Oct 30, 2018
Under Armour Inc raised its full-year profit forecast on Tuesday after reporting third-quarter results that topped Wall Street estimates, as the sportswear maker benefited from higher overseas sales and lower expenses.
Shares of the Baltimore-based company, which have risen about 26 percent this year as it strives to regain momentum in its battle to become one of the big players in global sportswear, rose nearly 9 percent to $19.81 in premarket trading.
The company discounted less to sell its shoes and offered fewer promotional add-ons as part of its efforts to shore up margins after a tough period where Nike Inc and Adidas AG have pushed back against its initial progress in U.S. markets.
Gross margins rose for the first time in several quarters, rising 20 basis points to 46.5 percent in quarter and beating analysts' expectation of 45.8 percent.
The maker of Curry 5 and Project Rock 1 sneakers has been spending heavily on international markets, as it shifts focus away from its North America business where sales in the quarter fell 1.6 percent. International sales rose 15.1 percent.
The company raised its full-year adjusted earnings per share forecast to between 19 cents and 22 cents from a prior guidance of 16 to 19 cents.
Net profit rose to $75.3 million, or 17 cents per share, in the quarter ended Sept. 30. Excluding certain items, Under Armour earned 25 cents per share, beating analysts' estimate of 12 cents.
Net revenue rose 2.4 percent to $1.44 billion, edging past analysts' average estimate of $1.42 billion, according to Refinitiv data.
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