Under Armour (NYSE: UA) on Thursday reported quarterly earnings and sales that topped analysts’ expectations, as it sold more running shoes and cleaned up inventories, sending its stock higher. It also raised its profit outlook for 2019.
The athletic apparel retailer reported earnings of five cents a share for the first quarter ended March 31 on sales of $1.21 billion. Analysts were calling for Under Armour to break even on a per-share basis, with sales of $1.18 billion.
As of Wednesday’s market close, the stock had climbed about 24% so far this year, bringing Under Armour’s market cap close to $10 billion.
Under Armour updated its earnings outlook for the full year 2019, now expecting annual earnings to fall within a range of 33 to 34 cents per share, compared with a prior range of 31 to 33 cents. It’s still calling for revenues to be up roughly 3% to 4% overall, with sales growth remaining "relatively flat" in North America.
Sales in North America were down 3% during the first quarter, amounting to $843 million, while international revenues grew 12%, to $328 million. Under Armour said revenues from international markets — including Europe and Asia — now make up 27% of total sales.
Meantime, CEO Kevin Plank has said the company plans to stay true to its "performance" gear, despite "athleisure" gaining more momentum in its home turf. Some analysts say Under Armour is struggling because the company is choosing not to pivot toward the yoga pants and casual-wear trend as much as its peers.
Shares gained $1.64, or 7.4%, to $23.68
