Under Armour surges in Q4, beating expectations

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Under Armour Inc. on Wednesday reported fourth-quarter net income of $184.5 million, after reporting a loss in the same period a year earlier, underscoring a recent surge in the Baltimore-based company’s stock price.

Under Armour said it had a profit of 40 cents per share. Earnings, adjusted for one-time gains and costs, were 12 cents per share.

The results beat Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for a loss of 7 cents per share.

The sports apparel company posted revenue of $1.4 billion in the period, also beating Street forecasts. Eleven analysts surveyed by Zacks expected $1.27 billion.

For the year, the company reported a loss of $549.2 million, or $1.21 per share, swinging to a loss in the period. Revenue was reported as $4.47 billion. Under Armour expects full-year earnings in the range of 12 cents to 14 cents per share.

Under Armour shares have increased 21% since the beginning of the year. The stock has increased slightly more than 1% in the last 12 months.

“Improving brand strength and consistent operational execution delivered better than expected results in the fourth quarter,” said Under Armour CEO Patrik Frisk. “Our global team was exceptionally resilient and disciplined amid a highly challenging year which included the COVID-19 pandemic and for Under Armour, a comprehensive restructuring effort including further operating model refinements.”

In 2021, the company forecasts that its revenue will grow at a high-single-digit percentage rate, reflecting a high single-digit growth rate in North America and a high-teens growth rate in international business.

Under Armour said its operations could still be affected by the pandemic. As of Jan. 31, about 95 percent of its North American stores were open; 95 percent of Asia-Pacific stores were open; and only 70 percent of Latin American stores were open.

The company also said stronger internet sales are helping it make up for declining traffic in stores.