Could Under Armour Inc. (UAA) really be on the upswing?
The struggling sports apparel company exceeded Wall Street forecasts Tuesday, Feb. 13, reporting a fourth-quarter revenue of $1.4 billion, compared with the anticipated $1.31 billion. Earnings per share were on par with analysts' expectation for Under Armour to break even. Under Armour shares closed up more than 17%, trading at $16.70.
"The dynamic landscape of 2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company," Under Armour CEO Kevin Plank said in a statement. "The tough decisions we're making are generating the stability necessary to create a more consistent and predictable path to deliver long-term value to our shareholders."
In the past year, Under Armour's shares have fallen by more than 30%.
In the fourth quarter, its $1.4 billion revenue marks a 5% increase since the same period last year. Revenue in North America was down 4%, but the slump was offset by international growth of 47%. The company took on $37 million in operating losses.
Its footwear category posted strong growth of 9% in revenue, followed by accessories with a 6% uptick and apparel with 2%. Last week, Under Armour unveiled its latest running shoe, the HOVR Phantom, which is already sold out at some stores.
For full-year 2017, Under Armour also met Wall Street's mark, posting earnings of 19 cents and total revenue of $5. Analysts predicted revenue to be $4.9 billion, according to FactSet. Direct-to-consumer revenue represented 35% of the total revenue, the company said.
As part of its restructuring plan announced in October, Under Armour spent about $129 million in its turnaround efforts in 2017. It announced today that it will spend an additional $110 million to $130 million in 2018 for lease terminations, contract terminations and asset-related impairments.
Subscribe on Youtube for extended interviews, Cramer Replays, feature content, and more!