Under Armour (NYSE:UAA) on Wednesday reported a surprise profit for the holiday quarter as sales were boosted by strong digital growth and the company kept its expenses in check.
The sneaker maker also offered an initial outlook for 2021. It expects sales to rise in the high single digits, helped by a rebound of consumer demand in North America. Revenue fell 15% in 2020.
Earnings per share registered at 12 cents, as opposed to an expected loss of seven cents. Revenue came in at $1.4 billion vs. the expected $1.27 billion.
For the fourth quarter, net income grew to $184.5 million, or 40 cents per share, compared with a loss of $15.3 million, or three cents a share, a year ago.
The company previously announced a $550-million-to-$600-million restructuring plan intended to help improve profits and cash flow. It said it recognized $62 million of pretax charges tied to this plan in the fourth quarter. Excluding one-time charges, the company earned 12 cents per share, better than the seven-cent loss forecast by analysts.
Sales dropped 3% to $1.40 billion from $1.44 billion a year ago, but topped analysts’ estimates of $1.27 billion.
Even though the pandemic continues to make conditions uncertain, the company released a forecast for this year, predicting a per-share loss of 18 cents to 20 cents. After adjustments, however, Under Armour expects to earn 12 cents to 14 cents a share. Analysts had been calling for per-share earnings of 13 cents.
UA shares traveled $1.37, or 6.6%, higher to $22.09.
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