Products will be on display at an Under Armor store in New York City on November 4, 2019.
Brendan McDermid | Reuters
Under Armor reported a surprising gain for the holiday quarter on Wednesday as sales were boosted by strong digital growth.
The sneaker manufacturer also offers an initial outlook for 2021. He expects sales to rise in the high single digits, aided by a recovery in consumer demand in North America. Revenue fell by 15% in 2020.
Its shares jumped more than 5% in pre-trading.
Here’s how the company performed for the fourth quarter compared to what analysts had expected, based on a survey by Refinitiv:
- Earnings per share: 12 cents, adjusted, at a loss of 7 cents, expected
- Revenue: $ 1.4 billion versus $ 1.27 billion, expected
For the fourth quarter, net income grew to $ 184.5 million, or 40 cents per share, compared to a loss of $ 15.3 million, or 3 cents per share, a year ago. If the cost is not one-time, the company earned 12 cents a share, better than the 7-cent analysis forecast.
Sales fell 3% to $ 1.40 billion from $ 1.44 billion a year ago, but analysts’ estimates of $ 1.27 billion were better.
Wholesale revenue fell 12%, while Under Armor’s direct-to-consumer business grew by 11%, driven by a 25% increase in e-commerce sales. More buyers visited his website to buy exercise equipment and other outdoor sports equipment to stay active during the pandemic.
But under America, the domestic market remained weak, with sales in North America up 6%. Revenue increased by 7% in international markets.
Although the pandemic is still making uncertainties, the company has released a forecast for this year that predicts a loss of 18 cents to 20 cents per share. After adjustments, however, Under Armor expects to earn 12 cents to 14 cents per share. According to Refinitiv, analysts asked for earnings of 13 cents per share.
The company has warned that the outlook could continue to be jeopardized by the ongoing health crisis. Although most stores are open, most still do not operate at full capacity, he said.
Under Armor shares have risen by about 2% since the market closed over the past twelve months. The company has a market capitalization of $ 9.42 billion.
Find the full press release from Under Armor here.