Under Armour (NYSE:UAA) shares looked for big things in Tuesday trading, after the sneaker maker reported better-than-expected fourth-quarter earnings and sales, boosted by apparel sales and growth overseas.
The company earned nine cents per share on an adjusted basis, topping expectations of four cents.
Sales during the quarter were $1.39 billion, again ahead of expectations for $1.38 billion.
In the U.S., Under Armour said sales fell 6% during the fourth quarter to $965 million, while international sales climbed 28% on a currency neutral basis to $395 million and now account for 28% of total revenue.
It said apparel sales were up 2%, fueled by its training business.
Footwear sales were down 4%, as Under Armour said it sold fewer shoes in discount stores during the holiday period. Accessories sales declined 2%.
The chain didn’t make changes to its outlook, which it laid down in December, still calling for sales to be up 3% to 4% in 2019, with results "relatively flat" in North America. Wall Street was largely disappointed when Under Armour announced these targets, as they imply the focus this year will still be on investing, and that more meaningful growth won't come until 2020 or later.
Under Armour Chairman and CEO Kevin Plank said, "As we look ahead to 2019, our accelerated innovation agenda, disciplined go-to-market process and powerful consumer-centric approach gives us increasingly greater confidence in our ability to deliver for Under Armour athletes, customers and shareholders."
Under Armour shares have climbed more than 50% from a year ago. Those shares nicked up a penny Tuesday morning to $20.78.
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