Products are displayed in an Under Armour store in New York City, November 4, 2019.
Brendan McDermid | Reuters
Under Armour on Friday reported revenue about flat with a year earlier, with earnings topping estimates, as consumers stocked up on the brand’s sneakers and workout gear.
Chief Executive Patrik Frisk cited higher demand for the athletic apparel maker’s products during the coronavirus pandemic, especially in North America, for the better-than-expected performance.
The company said it expects full-year revenue to be down by a high-teen percentage rate, as it sells fewer products through department stores and off-price retailers. Previously, it had been calling for a drop of 20% to 25%. Its new outlook, though still a decline, is better than the 25.7% drop that analysts had predicted.
Under Armour shares jumped more than 7% in premarket trading.
Here’s how the company did during its fiscal third quarter, compared with what analysts were expecting, based on Refinitiv data:
- Earnings per share: 26 cents, adjusted, vs. 3 cents, expected
- Revenue: $1.43 billion vs. $1.16 billion, expected
For the quarter ended Sept. 30, Under Armour’s net income shrank to $38.9 million, or 9 cents per share, from $102.3 million, or 23 cents a share, a year earlier. Excluding one-time charges, it earned 26 cents per share, topping expectations for 3 cents, according to Refinitiv estimates.
Revenue was about flat from a year ago, at $1.43 billion, outpacing estimates for $1.16 billion.
In North America, revenue decreased 5% to $963 million, while international sales increased 18% to $433 million.
Apparel sales fell 6% to $927 million, while footwear revenue jumped 19% to $299 million, and accessories revenue rose 23% to $145 million, the company said.
Under Armour earnings as of Thursday’s market close are down about 36% this year. The company has a market cap of $6.3 billion.
This story is developing. Please check back for updates.