Categories Earnings, LATEST, Other Industries

Under Armour Q3 results top estimates on overseas sales; stock soars

Shares of Under Armour (UAA) rallied in the premarket Tuesday after third-quarter results topped Wall Street estimates as overseas sales of the sneaker maker rose sharply, aided by the ongoing expansion initiatives. The market was also buoyed by the upward revision of full-year earnings outlook.

Under Armour Q3 results beat estimates
Under Armour Q3 2018 Earnings Infographic

Net income, on an adjusted basis, rose to $112 million or $0.25 per share, exceeding analysts’ forecast. Reported profit was $75.3 million or $0.17 per share, up from $54.2 million or $0.12 per share a year earlier.

Revenues of the Baltimore-headquartered sneaker maker moved up 2.4% to $1.44 billion during the three-month period and came in above expectations, helped by a 15% growth in international sales that more than offset a 2% decline in the North American market.

Wholesale revenue advanced 4%, while direct-to-consumer revenue remained broadly unchanged year-over-year. While footwear and accessories remained sluggish, apparel revenue rose 4%.

Wholesale revenue advanced 4%, while direct-to-consumer revenue remained broadly unchanged from last year

The company incurred pre-tax costs of $154 million during the quarter in connecting with its ongoing restructuring program and expects about $200-$220 million in restructuring and related charges for the remainder of the year.

“As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences,” said CEO Kevin Plank.

Overseas sales boost Under Armour topline in Q2

In the whole of 2018, revenues are expected to grow between 3% and 4%, which reflects a low single-digit decline in North America and a 25% growth in the overseas market. Apparel is seen growing at mid-single-digits in 2018, footwear at a low single-digit and accessories at a mid-single-digit rate. Inventory is forecast to be flat to slightly down at the end of the year. The company revised up its full-year adjusted earnings guidance to the range of $0.19 per share to $0.22 per share from the previous outlook of $0.16-$0.19 per share.

Under Armour’s shares gained about 10% in the pre-market trading Tuesday, after closing the last trading session higher.

Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Viewing Highlight