Shoppers pass an Under Armour store in White Plains, New York.
Scott Mlyn | CNBC
Under Armour on Tuesday reported first-quarter earnings and sales that topped estimates, and the sports apparel maker hiked its sales and profit outlook for the full year.
Its stock jumped more than 3% in premarket trading.
Here’s how the company did during its quarter ended March 31 compared with what analysts were anticipating, based on a Refinitiv survey:
- Earnings per share: 16 cents adjusted vs. 3 cents expected
- Revenue: $1.26 billion vs. $1.13 billion expected
Under Armour’s net income grew to $77.8 million, or 17 cents per share, compared with a loss of $589.7 million, or $1.30 per share, a year earlier. Excluding one-time charges, the company earned 16 cents per share, better than the 3 cents that analysts were anticipating, based on Refinitiv estimates.
Sales rose to $1.26 billion from $930.2 million a year earlier, beating estimates for $1.13 billion.
Under Armour said it now expects full-year revenue to rise by a high-teen percentage rate, compared with a previous outlook of a high-single-digit increase.
It’s calling for 2021 adjusted earnings per share to be in the range of 28 cents to 30 cents, compared with a prior range of 12 cents to 14 cents.
CEO Patrik Frisk noted the company is seeing strong demand for the brand, as business rebounds across Asia and North America. In the year-ago period, Under Armour’s sales tumbled more than 20%, as its business took a blow from the coronavirus pandemic and its stores were forced shut, freezing turnaround plans.
On Monday, Under Armour said it agreed to pay the Securities and Exchange Commission $9 million to settle charges that it mislead investors from 2015 to 2016 by recording $408 million in sales that it expected to complete in future quarters.
The retailer settled the charges without admitting or denying the findings in the SEC’s order. Under Armour had also been responding to requests for documents and information from the U.S. Department of Justice, and said Monday that it hasn’t received any requests from the DOJ since the second quarter of 2020.
This story is developing. Please check back for updates.