Under Armour (UAA) - Get Free Report shares spiked higher Tuesday after the sports apparel group posted stronger-than-expected second quarter earnings, and boosted its 2021 sales forecast, as shoppers returned to brick-and-mortar stores as pandemic restrictions lifted in major economies around the world.
Gains were later capped, however, after the company said supply-chain delays and COVID uncertainty could challenge its improved second half outlook.
Under Armour said adjusted earnings for the three months ending in June came in at 24 cents per share, well ahead of the Street consensus of 5 cents and up from a 31 cents per share loss over the same period last year. Group revenues, Under Armour said, rose 91% to $1.4 billion, again topping the consensus analysts' estimate of $1.2 billion.
Looking into the final half of the year, Under Armour said it sees "a low twenties percentage rate" growth in group revenues, up from a "high teens" forecast in May, with adjusted operating income of between $340 million to $350 million.
"We are very pleased with Under Armour's better than expected second-quarter results, which reflect solid progress compared to both 2020 and 2019. Given the continued momentum, we're raising our full-year outlook, which puts us on track to achieving a solid performance in 2021," said CEO Patrik Frisk. "With the critical mass of our transformation behind us and the continued improvements across product, marketing, and our financial results, I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth."
"At the halfway point of our fiscal year, I'm confident in our ability to execute our strategy by putting Focused Performers at the center of everything we do and increasing our capacity to drive consistent, profitable growth for our shareholders over the long-term," he added.
Under Armour shares were marked 1.6% higher in early trading immediately following the earnings release -- following pre-market gains of nearly 7% -- to change hands at $21.50 each.