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Under Armour revenue gets global boost, profit slides

By
Reuters
Published
today Jul 26, 2018
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Sportswear maker Under Armour Inc topped Wall Street estimates with an 8 percent rise in revenue in the second quarter as a recent rise in investment in international markets began to pay dividends.


Net revenue rose nearly 8 percent to $1.17 billion - Divulgação



Sales in North America also inched up by 1.6 percent, breaking a run of declines dating back several quarters, and shares in the Baltimore-based company rose nearly 4 percent to $20.48 in trading before the bell.

Buffetted by competition from sneaker giants Nike Inc and Adidas AG, Under Armour has shifted focus to its international markets and sales in Europe and Asia rose 31 and 34 percent respectively.

The company’s net loss, however, widened to $95.5 million, or 21 cents per share, in the second-quarter ended June 30, from $12.3 million, or 3 cents per share, a year earlier

Selling, general and administrative costs rose 10 percent to $553 million mainly due to its additional investments.

Excluding certain items, Under Armour lost 8 cents per share, in-line with analysts’ estimates, according to Thomson Reuters I/B/E/S.

Net revenue rose nearly 8 percent to $1.17 billion, beating analysts’ average estimate of $1.15 billion.

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