Brendan McDermid | Reuters
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.
Find the full earnings press release here.
This story is developing. Please check back for updates.
Original news source Credit: www.cnbc.com
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