Categories AlphaGraphs, Consumer, Earnings
Earnings: Under Armour Q2 loss narrows; stock falls on revenue miss
Sportswear company Under Armour (NYSE: UAA) reported a narrower net loss for the second quarter, aided by an increase in revenues. While the bottom-line surpassed the estimates, sales missed, driving the company’s stock lower in Tuesday’s pre-market session.
Second-quarter net loss narrowed to $17 million or $0.04 per share from $96 million or $0.21 per share in the same period of last year. Analysts were looking for a slightly wider loss. The results benefitted from improved product pricing and regional mix.
Revenues moved up 1% to $1.2 billion but missed the Street view. Wholesale revenue decreased by 1% while direct-to-consumer revenue rose 2%. North America revenue dipped 3% to $816 million, while international revenues rose 12% to $339 million. Apparel revenue was down 1% and footwear revenue up 5%, while accessories revenue remained unchanged.
North America revenue decreased 3% to $816 million, while international revenues rose 12% to $339 million
“By staying sharply focused on our long-term strategies – driving our premium athletic brand positioning through industry leading innovation, geographic expansion and creating deep connections with our consumers – we are on track to deliver against our expectations in 2019 ,” said CEO Kevin Plank.
Looking ahead, the company expects full-year revenue to grow 3-4%, reflecting a slight decline in North America and a low to mid-teen percentage rate increase in the international business. Gross margin is seen rising about 110-130 basis points.
Operating income is expected to be $230-$235 million, up from the previous estimate. The forecast for earnings per share is in the range of $0.33 to $0.34, which includes a negative impact from a minority interest in the company’s Japanese licensee. Full-year Capital expenditure is estimated at around $210 million.
Under Armour’s shares are currently trading at the highest level in about two-and-half years. The stock gained 54% since the beginning of the year. It closed the last trading session higher but fell sharply Tuesday morning.
Most Popular
QCOM Earnings: Qualcomm Q2 2024 revenue and profit beat Street view
Semiconductor company Qualcomm, Inc. (NASDAQ: QCOM) reported an increase in earnings and revenues for the second quarter of 2024. The numbers came in above analysts' estimates. At $9.39 billion, March-quarter
Key takeaways from Amazon’s Q1 2024 earnings report
Amazon.com Inc. (NASDAQ: AMZN) had an upbeat start to fiscal 2024, delivering strong growth across the business in the first three months of the year. While the cloud segment continues
Key takeaways from Pfizer’s (PFE) Q1 2024 earnings report
Shares of Pfizer Inc. (NYSE: PFE) gained over 5% on Wednesday following the company’s announcement of its first quarter 2024 earnings results. Although the top and bottom line numbers decreased
Comments
Comments are closed.