Under Armour shares rose 9.6% in premarket trading as the company reported adjusted earnings per share of $0.26, above estimated $0.03, according to the company’s press release. The company reported $1.43 billion revenues topping $1.16 billion estimates. Revenues were boosted by an increase in online shopping and demand for workout gear in consumer markets.
- Under Armour expects full-year revenues to fall at a high-teen percentage rate compared to 2019
- Gross margin is expected to be up 20 to 40 basis points versus 2019 due to channel mix benefits and supply chain efficiencies.
- Operating loss is expected to be about $800-860 million, while adjusted operating loss is expected to reach $140-$150 million.
- Adjusted interest and other expenses are planned at approximately $55 million.
- Adjusted diluted loss per share is expected to be between $0.47 to $0.49
- Inventory is expected to be about 10% at the end of 2020
- Capital expenditures are planned at $80 million, down from $144 million in 2019
- Q3 2020 gross margin fell 40 basis points to 47.9% from the prior year on COVID-19 impacts.
- Q3 2020 net income was $39 million, adjusted net income was $118 million while operating income was $59 million.
Under Armour stock is declining. UAA: NYSE is down 1.45%