NEW YORK ( TheStreet) -- It must be the shoes.
Shares of Under Armour (UA) were racing higher Tuesday as investors appeared stoked about the athletic apparel company's adjusted outlook and strength of its footwear line.
Shares of the Baltimore-based company were at $53.89, up 5.51, or 11.4%, and jumped as high as 13.7% after it beat top- and bottom-line estimates, improved its margins and -- why analysts believe the stock is on the move -- boosted its 2012 sales forecast to $1.82 billion, up from a previous $1.8 billion.
"No question revenues are really the driver here and they were certainly above what people were expecting in terms of the growth rate that really kind of flowed through slightly better gross margins," said Christopher Svezia, senior analyst at Susquehanna Financial Group.The updated forecast signaled that Under Armour's new product innovation has started to pay off for a company that does about 90% of its business inside the United States. The apparel and footwear manufacturer credited significant strength in men's, women's and youth apparel business, but one analyst said investors are probably upbeat about the success of footwear that should strengthen through 2012 and into 2013. "I think people are encouraged by the momentum in the footwear business, specifically the launch of the Spine RPM, which sold into the stores well ... and their high-priced Highlight football cleat has reportedly come back pretty strong," said Jonathon Grassi, senior analyst at Longbow Research. The
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