Under Armour Inc. (UAA) - Get Report posted stronger-than-expected first quarter earnings Thursday, and boosted its full year earnings guidance, as solid overseas demand offset a fall in North American sales for the athletic apparel maker.
Under Armour said earnings for the three months ending in March came in at 5 cents per share, swinging 12 cents from a loss posted over the same period last year and 5 cents ahead of the Street consensus forecast. Group revenues, the company said, rose 1.6% to $1.204 billion.
Looking into 2019, Under Armour said it sees full year earnings in the range of 33 to 34 cents per share, a two penny upgrade from its prior forecast, with gross margins improving between 110 and 130 basis points from last year. Group revenues are likely to rise between 3% and 4% from last year, as well, the company said.
"Our first quarter results demonstrate our unwavering commitment to protecting and growing our premium performance athletic brand through a disciplined go-to-market process that delivers innovative products and experiences to make athletes better," said Under Armour Chairman and CEO Kevin Plank. "As we execute against our long-term plan, Under Armour will emerge from 2019 and our 'Protect This House' chapter as an even stronger brand and company."
Under Armour shares were jumping 7.5% to $23.69 in trading Thursday.
North America revenue fell 3% to $843 million, Under Armour said, while international business sales surged 12% to $328 million thanks to a 25% increase in the Asia Pacific region.