Under Armour Rises as Earnings Stand Strong Against Pandemic

Sports-apparel retailer Under Armour's revenue was flat with a year earlier and topped the FactSet analyst consensus.
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Under Armour  (UA) - Get Report shares rose on Friday after the sports-apparel retailer posted stronger-than-expected third-quarter profit, withstanding the coronavirus pandemic.

The stock recently traded at $12.73, up 5.73%. The shares had fallen 37% year to date through Thursday amid the pandemic and stiff competition in the industry.

Profit registered $38.9 million, or 9 cents a share, for the latest quarter, down from $102.3 million, or 23 cents a share, in the year-earlier quarter. Adjusted earnings per share totaled 26 cents, exceeding the analyst consensus of 3 cents in a FactSet survey.

Revenue was unchanged from the year-ago quarter at $1.43 billion, topping the FactSet analyst consensus of $1.2 billion.

“Our third-quarter results reflect considerably better-than-expected performance due to higher demand and our strong execution, especially in North America," Under Armour Chief Executive Patrik Frisk said in a statement.

"We believe that the critical mass of our transformational challenges is behind us, and we remain sharply focused on operational improvements and financial discipline.”

To be sure, Under Armour isn’t out of the woods yet. "Due to ongoing uncertainty related to covid-19 and its potential effect on global markets, the company expects material impacts on its business results for the remainder of 2020 and into 2021," it said in a statement.

Under Armour expects revenue to drop by a high-teen-percentage for all of 2020 and expects an adjusted loss per share of 47 cents to 49 cents. The analyst consensus calls for a drop of 71 cents.

Meanwhile, the company unveiled an agreement to sell its MyFitnessPal platform to the San Francisco private-equity firm Francisco Partners for $345 million. Under Armour expects the deal to close this quarter.