Under Armour (NYSE: UAA) on Tuesday reported quarterly earnings and revenue that topped analysts' expectations thanks to a spike in sales overseas, as the sneaker maker continues to struggle to grow its business in the U.S.
The company also raised its earnings outlook for the full year, excluding any impact from its ongoing efforts to trim excess inventory and cut costs. Faced with heightened competition from Nike (NYSE: NKE), Adidas and Lululemon (NYSE: LULU), Under Armour has been pressured to roll out new merchandise that goes beyond the performance gear that it's known for.
Shares of the company climbed $4.21, or 23.1%, in early trading Tuesday, on the news, to $22.40. The stock as of Monday had risen more than 25% so far this year. Earnings per share came in at 25 cents, adjusted, vs. 12 cents expected. Revenue was $1.44 billion vs. $1.42 billion expected
The Baltimore-headquartered retailer reported net income of $75.3 million, or 17 cents per share, up from $54.2 million, or 12 cents per share, a year ago.
Excluding one-time items, Under Armour earned 25 cents per share, ahead of the 12 cents per share expected by analysts.
Net sales rose about 2.4% to $1.44 billion, beating expectations of $1.42 billion.
In North America, Under Armour said revenue fell 2% during the quarter to $1.1 billion.
Apparel revenue was up 4%, with footwear sales flat and accessories revenue down 6%, Under Armour said.
Looking to 2018, Under Armour now expects to earn between 19 and 22 cents per share, adjusted, up from a prior outlook of between 16 and 19 cents a share.
