Under Armor (UAA) reports Q3 2021 earnings

Under Armor clothing on display at a sporting goods store.

Justin Sullivan | Getty Images

Under Armor stock soared in premarket Tuesday as strong fiscal third-quarter earnings showed the sportswear maker is seeing progress in improving its brand image under the leadership of CEO Patrick Frisk.

Due to increased demand for sneakers and sweat-wicking apparel, Under Armor said it now expects sales to grow 25% from 2020 levels, surpassing the previous forecast.

The company’s shares have recently risen by about 9%.

Here are Under Armor’s results compared to what the analysts surveyed by Refinitiv expected:

  • Earnings per share: Adjusted 31 cents vs. 15 cents expected
  • Revenue: $ 1.55 billion vs. $ 1.48 billion expected

Net income for the three-month period ended September 30 rose to $ 113.4 million, or 24 cents a share, from $ 38.9 million, or 9 cents a share, a year earlier. Excluding one-time expenses, Under Armor earned 31 cents a share, more than double the analysts’ expected 15 cents a share.

Revenue rose 8% to $ 1.55 billion from $ 1.43 billion a year earlier. Analysts had expected sales of $ 1.48 billion.

Revenue from wholesale sales increased by 10%, and direct sales to consumers – by 12%. Online sales fell 4% from the previous year due to the slowdown in e-commerce activity caused by the pandemic.

Sales in North America were up 8% while international revenues were up 18%. In the global Under Armor segment, sales grew 19% in Asia Pacific, 15% in Europe, the Middle East and Africa, and 27% in Latin America.

In fiscal 2021, Under Armor reported adjusted earnings per share of about 74 cents, up from a previous estimate of 50-52 cents.

Revenue is estimated to grow by about 25% over the previous growth forecast for the first twenties.

Under Armor shares are up about 28% year-to-date as of the market close on Monday. The company has a market capitalization of $ 10.3 billion.

Find the complete Under Armor earnings press release here

This story is evolving. Please stay tuned.

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