Under Armour Bounces Back

Strong earnings and guidance lift the stock 16%.
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A big quarter and strong sales guidance Wednesday sent shares of

Under Armour

(UARM)

up more than 15% Wednesday morning.

The maker of special sweatshirts earned $8.7 million, or 18 cents a share, in the quarter, compared with $2.5 million, or 5 cents a share, last year. Seven analysts surveyed by Thomson First Call had produced a mean earnings estimate of 7 cents a share for Under Armour's latest first quarter.

First-quarter revenue jumped 50.7% from last year to $87.7 million, eclipsing the consensus Wall Street estimate of $72 million. Excluding licensee revenue, sales rose 50.3% to $85.3 million in the quarter.

"We exceeded our performance goals for the period as our top line benefited from continued strong sales contributions from all product categories throughout all channels of distribution," Under Armour said. "Our men's category posted a 31.8% sales increase to $52.5 million for the quarter, largely a result of our ability to successfully introduce exciting new product offerings including our golf polos as well as the continued expansion of our product within existing doors. This was coupled with the ongoing strong demand that the Under Armour brand enjoys among our core consumers."

For the second quarter, Under Armour expects to post revenue of $70 million to $75 million. Analysts had pegged the quarter at $72 million. For the full year, Under Armour sees revenue of $380 million to $390 million, well ahead of the $353.5 million Thomson First Call consensus.

The stock was recently up $5.31, or 16.2%, to $38.02. The stock, which doubled on its first day of trading in November and added another 55% through January, plunged on soft guidance issued Feb. 7 and has spent the interval since bouncing around $30 a share.