Under Armour ( NYSE: UAA ) traded higher on Thursday after besting consensus marks with its FQ2 earnings report .
Revenue was up 5% on a constant currency basis. North American revenue fell 2% during the quarter and international revenue increased 7% (+16% on a constant currency basis)
Footwear revenue soared 14% during the quarter to offset a 2% drop in apparel revenue. Accessories revenue was also strong at +12% growth.
Gross margin declined 560 basis points to 45.4% of sales, driven primarily by higher promotions, elevated freight expenses related to COVID-19 supply chain impacts, unfavorable channel mix, and the negative impact of changes in foreign currency.
Guidance from Under Armour ( UAA ) came in better than feared with the outlook for full-year EPS at $0.44 to $0.48 vs. $0.47 to $0.53 prior view and $0.45 consensus.
"While we anticipate the immediate macroeconomic backdrop to stay uncertain – we are taking a balanced approach to mitigate near-term pressures while continuing to focus on the long-term strength of our brand," noted Under Armour Interim CEO Colin Browne.
Shares of UAA rose 2.85% in premarket trading to take back some ground lost right in front of the report.
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Under Armour gains after posting better-than-feared results