Under Armour ( NYSE: UAA ) stock rose sharply on Wednesday after exceeding earnings expectations for the fiscal third quarter and raising forecasts for Q4.
The apparel manufacturer notched $0.16 in earnings per share, exceeding estimates by $0.07. Additionally, a 3.3% increase in revenue from the prior year to $1.58B exceeded expectations by $30M. While North America revenue slid 2% from the prior year, international revenue rose 14%. In terms of segment, a 25% jump in footwear revenue helped buoy results. Gross margin declined 650 basis points to 44.2% amid higher promotional activity and foreign currency impacts.
“We are pleased to have delivered solid third-quarter results and remain on track to achieve our full-year operational and financial goals,” interim CEO Colin Browne said. “Moving forward, I'm excited to partner with Stephanie Linnartz to advance our strategic consumer and product refinements further – leveraging Under Armour's strong brand to drive sustainable, profitable growth.”
Management now sees full-year adjusted EPS in the range of $0.52 to $0.56, up from a prior guide of $0.44 to $0.48. Analysts had anticipated $0.46. Gross margin projections were also adjusted as management now sees the metric hitting the high-end of a 375 to 425 basis point decline. Inventories ended the third quarter up 50% from the year prior.
Shares of the Maryland-based apparel and footwear distributor drove 8.02% higher in premarket trading on Wednesday.
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Under Armour stock accelerates on earnings beat, boosted guide