Under Armour Reports Better-Than-Expected Quarterly Earnings
Shares of Under Armour were on the rise as the sports apparel company released its third-quarter earnings report. The company reported adjusted earnings of 19 cents per share, surpassing Wall Street's estimate of 11 cents, according to FactSet. While revenue fell slightly short of analysts' expectations at $1.49 billion, Chief Executive Officer Stephanie Linnartz expressed satisfaction with the results.
Linnartz stated, "Despite a mixed retail environment during the holiday season, our third-quarter revenue results were in line with our expectations. We were able to deliver better than anticipated profitability and remain on track to achieve our full-year outlook."
Under Armour provided an updated sales guidance for fiscal 2024, projecting a decrease in revenue of 3% to 4%, compared to the previous estimate of a 2% to 4% drop. Gross margins are forecasted to rise between 120 and 130 basis points, an improvement from the earlier projection of a 100 to 125 basis point increase.
Furthermore, Under Armour expects adjusted earnings for fiscal year 2024 to range between 50 cents and 52 cents per share, exceeding analysts' prediction of 49 cents.
In response to the positive news, shares of Under Armour rose by 5.9% to $8.15 during premarket trading on Thursday.
-- Emily Dattilo
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