Beneath Armour (UAA) shares spiked larger Tuesday after the sports activities attire group posted stronger-than-expected second quarter earnings, and boosted its 2021 gross sales forecast, as buyers returned to brick-and-mortar shops as pandemic restrictions lifted in main economies all over the world.
Positive factors have been later capped, nonetheless, after the corporate mentioned supply-chain delays and COVID uncertainty might problem its improved second half outlook.
Beneath Armour mentioned adjusted earnings for the three months ending in June got here in at 24 cents per share, effectively forward of the Road consensus of 5 cents and up from a 31 cents per share loss over the identical interval final yr. Group revenues, Beneath Armour mentioned, rose 91 per cent to $1.4 billion (U.S.), once more topping the consensus analysts’ estimate of $1.2 billion.
Wanting into the ultimate half of the yr, Beneath Armour mentioned it sees “a low twenties proportion charge” development in group revenues, up from a “excessive teenagers” forecast in Might, with adjusted working revenue of between $340 million to $350 million.
“We’re more than happy with Beneath Armour’s higher than anticipated second-quarter outcomes, which replicate stable progress in comparison with each 2020 and 2019. Given the continued momentum, we’re elevating our full-year outlook, which places us on observe to reaching a stable efficiency in 2021,” mentioned CEO Patrik Frisk. “With the important mass of our transformation behind us and the continued enhancements throughout product, advertising and marketing, and our monetary outcomes, I consider this yr units a sturdy basis that positions us effectively for our subsequent chapter of worthwhile development.”
“On the midway level of our fiscal yr, I’m assured in our skill to execute our technique by placing Targeted Performers on the centre of every thing we do and rising our capability to drive constant, worthwhile development for our shareholders over the long-term,” he added.
Beneath Armour shares have been marked 1.6 per cent larger in early buying and selling instantly following the earnings launch — following pre-market positive factors of almost 7 per cent — to vary palms at $21.50 every.