By Holden Wilen
August 3, 2021
The following is an excerpt from the original Baltimore Business Journal article.
Under Armour Inc. shares soared almost 5% Aug. 3 after the sportswear maker’s profit far exceeded Wall Street expectations during the second quarter as sales more than doubled.
Baltimore-based Under Armour swung to a profit in the second quarter of $59 million, or 13 cents per share, compared to a loss of $183 million, or 40 cents per share, in the year-ago quarter when the vast majority of the company’s stores and wholesale locations were closed due to the Covid-19 pandemic.
Adjusting for the impact of a restructuring plan, Under Armour’s profit totaled $110 million, or 24 cents per share, compared to a loss of $141 million, or 31 cents per share, in the second quarter last year.
Sales skyrocketed 91% to $1.4 billion in the second quarter, compared to $707.6 million last year. Even compared to the second quarter of 2019, Under Armour sales grew 17.6% during the three-month period.
Analysts polled by the Thomson Financial Network expected Under Armour to report earnings of 5 cents per share and for sales to increase more than 70% to $1.21 billion.
Under Armour raised its full-year financial projections because of the momentum in the second quarter. Sales are expected to increase at a “low twenties percentage rate” compared to the previous expectation of a high-teens percentage growth. Adjusted earnings per share are expected to be between 50 to 52 cents per share, compared to the previously expected range of 28 to 30 cents per share.
Overall, the quarterly results and higher full-year projections sent shares of Under Armour (NYSE: UAA) up 4.9% in pre-marketing Aug. 3 to $22.15.
CEO Patrik Frisk said in a statement Under Armour’s results in the second quarter reflect “solid progress” compared to 2020 and 2019 and that the higher projections for the rest of the year put the company on track to “achieving a solid performance.”
“With the critical mass of our transformation behind us and the continued improvements across product, marketing and our financial results, I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth,” Frisk said.
Source: Baltimore Business Journal
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