Under Armour’s international sales increased by 18% in the third quarter of the fiscal year.
The US company reported sales of £1.10 billion and 20.08 pence EPS.
Under Armour is now forecasting a decline in revenues of over 15% for the full year.
Under Armour Inc. (NYSA: UAA) released its third quarter earnings report on Friday, which exceeded analysts’ earnings and revenue estimates as demand for exercise equipment and sneakers remained strong amidst the coronavirus pandemic. Performance, according to CEO Patrik Frisk, was better than expected, particularly in North America.
In the year to date, the company’s shares on the stock market have fallen by more than 35%. But Under Armour has recovered by about 75% in the first week of April since its low for the year so far. By comparison, the share price had risen by more than 20% last year. Learn more about why stock market prices rise and fall.
Under Armour’s financial results for Q3 compared to analysts’ estimates
According to Refinitiv, experts had forecast the company’s sales of 900 million pounds sterling for the third quarter. Their estimate for earnings per share was capped at 2.32 pence. In its report on Friday, Under Armor overtook both estimates, which had predicted higher revenues of £1.10 billion and earnings per share of 20.08 pence for the third quarter.
The US company also announced on Friday that it will sell its MyFitnessPal training platform to Francisco Partners (private equity) for £266.50 million sterling.
At £30.05 million, the sports apparel manufacturer’s net profit for the quarter ended September 30 was well below £79.03 million for the same quarter last year. Revenues in North America decreased by 5% to £743.92 million in the final quarter. International revenues, however, increased by 18% to £334.49 million.
Other prominent figures in Under Armour’s financial report on Friday include a 6% decline in apparel sales to £716.11 million on an annualized basis, a 19% year-on-year growth in footwear to £230.98 million and a 23% increase in accessories revenue to £112 million.
Under Armour’s leadership for the full year
For the full year, Under Armour is now forecasting a decline of over 15% in its revenues. In comparison, analysts are forecasting a much higher revenue decline of 25.7%. According to CFO David Bergman, the Baltimore-based company is likely to post slightly positive earnings growth per share in fiscal 2021.
According to Under Armour, the company’s direct consumer business has grown by 17% in the third quarter. Its global e-commerce business grew by over 50% in the last quarter. At £641.17 million, wholesale revenues in the third quarter were down 7%. The company was informed at the end of July that it could be sued by the SEC at the end of July.
At the time of writing, Under Armour is estimated at £4.54 billion.