Categories Earnings, Other Industries

Under Armour (UAA) stock falls on guidance cut; Q3 earnings beat

Sportswear company Under Armour (NYSE: UAA) reported stronger-than-expected earnings for the third quarter of 2019, despite a decline in revenues. The company also revised down its full-year guidance, sending the stock sharply lower during Monday’s pre-market trading session.

Third-quarter net income rose to $102.32 million or $0.23 per share from $75.27 million or $0.17 per share in the same period of last year. Analysts were looking for a lower profit.

Under Armour (UAA) stock falls on guidance cut; Q3 earnings beat

Revenues declined 1% annually to $1.43 billion but came in slightly above analysts’ forecast. Wholesale revenue decreased by 2 % and direct-to-consumer revenue rose 1%.

Also see: Gap Q2 sales miss estimates, cuts earnings outlook

During the quarter, strength in the international business continued to offset weakness in the North American division. Revenue from international markets grew 5% during the quarter, compared to a 4% declined witnessed in North America.

“Our ongoing transformation across the business continues to make us smarter, faster and more operationally excellent. As we make the turn into 2020, we are confident in our ability to deliver our fourth quarter targets while proactively supporting higher levels of strategic marketing investments that will further fuel the Under Armour brand,” said CEO Kevin Plank.

Related: Sogou Inc (SOGO): Q3 2019 Earnings Snapshot

The management said it expects full-year revenue to grow about 2%, which is below the earlier forecast for 3-4% growth.

Under Armour shares lost about 12% early Monday, soon after the earnings report, after closing the previous session higher.

Earlier this month, Kevin Plank announced that he would move on to the position of Executive Chairman and Brand Chief, while Patrik Frisk would take over as the new CEO, effective January 1, 2020.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues

Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came

Riding the AI wave, Nvidia looks set to stay on the high-growth path

After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on

Target (TGT): A look at some of the challenges faced by the retailer in 3Q24

Shares of Target Corporation (NYSE: TGT) stayed green on Thursday, recovering from the stumble it took a day ago after delivering disappointing results for the third quarter of 2024 and

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top