Under Armour (NYSE:UAA) shares soared Tuesday as strong fiscal third-quarter earnings revealed the athletic apparel maker is seeing progress in improving its brand image under CEO Patrik Frisk.
With heightened demand for its sneakers and sweat-wicking clothing, Under Armour said it now anticipates sales will rise 25% from 2020, topping its prior outlook.
Frisk has been trying to improve Under Armour’s image by increasing marketing spending and pulling inventory out of discount channels in order to sell more at full price.
Net income for the three-month period ended Sept. 30 rose to $113.4 million, or 24 cents per share, compared with $38.9 million, or 9 cents a share, a year earlier.
Excluding restructuring charges of $17 million, Under Armour earned 31 cents per share, more than double the 15 cents per share that analysts expected.
In April 2020, Frisk announced a $550 million to $600 million restructuring plan. The company now expects it will tally $525 million to $575 million in charges as it looks to cut costs by the end of its fiscal first quarter.
Revenue rose 8% to $1.55 billion from $1.43 billion a year earlier. Analysts had anticipated sales of $1.48 billion.
Online sales were down 4% from the prior year, as pandemic-fueled e-commerce activity slowed. The company said digital sales made up 33% of total sales, down from 39% in the prior period.
UAA shares leaped in the first hour of Tuesday’s trade, by $3.80, or 17.3%, to $25.78.
