Under Armour (UAA) - Get Report posted stronger-than-expected first quarter earnings Tuesday, and lifted its full-year sales guidance, as retailers continue to benefit from state re-openings in the waning months of the coronavirus pandemic.
Under Armour said adjusted diluted profits for the three months ending in March came in at 16 cent per share, up from a loss of 34 cents for the same period last year and well ahead of the Street consensus forecast of 3 cents per share. Group revenues, Under Armour said, rose 35% to $1.3 billion, firmly ahead of analysts' estimates of a $1.126 billion tally.
Looking into the 2021 financial year, Under Armour said it sees revenues growing at a 'high teens percentage rate', up for a 'high single digit' forecast, but note that "continued COVID uncertainty" could still have a material impact on its results.
"Under Armour is off to an excellent start for the year. Our first-quarter results demonstrate that our improved operating model and investments we're making to amplify our connection with consumers are enabling us to deliver against strong demand for our brand," said CEO Patrik Frisk.
"Additionally, with a solid balance sheet and well-managed inventory, we're confident in our ability to drive well through 2021 as we get back on offense and make measured progress to returning to sustainable, profitable growth over the long-term," Frisk said.
Under Armour shares were marked 1% lower in early trading immediately following the earnings release to change hands at $19.70 each, a move that would clip the stock's six-month gain to around 57%.