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
PG Earnings: Procter & Gamble Q3 profit climbs, beats estimates
Consumer goods behemoth The Procter & Gamble Company (NYSE: PG) announced financial results for the third quarter of 2024, reporting a double-digit growth in net profit. Sales rose modestly. Core
AXP Earnings: All you need to know about American Express’ Q1 2024 earnings results
American Express Company (NYSE: AXP) reported its first quarter 2024 earnings results today. Consolidated total revenues, net of interest expense, increased 11% year-over-year to $15.8 billion, driven mainly by higher
Netflix (NFLX) Q1 2024 profit tops expectations; adds 9.3Mln subscribers
Streaming giant Netflix, Inc. (NASDAQ: NFLX) Thursday reported a sharp increase in net profit for the first quarter of 2024. Revenues were up 15% year-over-year. Both numbers exceeded Wall Street's
Comments
Comments are closed.