People walks past a Under Armour clothing store in Siam Center, Bangkok.
Guillaume Payen | SOPA Images | LightRocket | Getty Images
Under Armour reported Tuesday fiscal second-quarter profit and sales that topped analysts’ estimates as its turnaround efforts took hold and shoppers bought more of its merchandise at full price.
The athletic apparel maker also hiked its outlook for the full year, anticipating that its momentum will build. It now expects fiscal 2021 revenue to rise at a low-20s percentage, compared with a previous forecast of a high-teen percentage increase.
Under Armour shares were climbing around 6% in extended trading.
Here’s what Under Armour reported for the three-month period ended June 30, compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 24 cents adjusted vs. 6 cents expected
- Revenue: $1.35 billion vs. $1.21 billion expected
In the quarter ended June 30, Under Armour swung to a profit of $59.2 million, or 13 cents per share, from a loss of $182.9 million, or 40 cents per share, a year earlier. Excluding one-time charges, the company earned 24 cents per share. Analysts surveyed by Refinitiv had been looking for 6 cents.
Revenue climbed 91% to $1.35 billion from $707.6 million a year earlier, beating estimates for $1.21 billion.
Sales in North America, its largest geography, rose 101% year over year to $905 million, while international revenue doubled to $446 million.
Wholesale revenue grew 157% to $768 million, and direct-to-consumer revenue increased 52% to $561 million, the company said. E-commerce sales represented 39% of Under Armour’s direct-to-consumer business during the quarter.
Under Armour’s apparel segment was up 105%, as consumers around the world bought more clothes to sweat in the gym. Footwear sales were up 85% from the prior year. Accessories revenue was up 99%.
“I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth,” CEO Patrik Frisk said in a statement.
Under Armour raised its forecast for 2021 adjusted earnings to a range of 50 cents to 52 cents per share, compared with a prior range of 28 cents to 30 cents per share.
Analysts surveyed by Refinitiv had been looking for full-year adjusted earnings per share of 35 cents on sales of $5.35 billion, which would represent year-over-year growth of 19.5%.
Find the full earnings press release from Under Armour here.
This story is developing. Check back for updates.
