Finance
Under Armour lifts annual profit view, beats quarterly results on demand recovery
Published by Global Banking and Finance Review
Posted on February 6, 2025
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on February 6, 2025
(Reuters) -Under Armour on Thursday raised its forecast for annual profit after beating third-quarter results, helped by the athletic wear maker's efforts to dial down on discounts and improving demand in North America and Asia.
The company's shares were up about 10% in premarket trading.
Consumers looking for on-trend shoes and apparel during the holiday quarter aided in boosting sales for sportswear companies, igniting hopes of demand recovery amid slowdown in crucial markets like China.
Quarterly net revenue in Under Armour's North America segment, a major revenue contributor, fell 8%, compared with a 12% decline a year ago.
While in the Asia-Pacific region its net revenue fell 5%, compared with 7% a year earlier.
Last month, German peer Adidas managed to pull off a successful turnaround with upbeat sales in its latest quarter.
The Baltimore, Maryland-based company has also been beefing up its marketing investments to boost brand visibility and appeal to younger customers amid rising competition.
Under Armour adapting to its founder and CEO Kevin Plank's plans of selling apparel and footwear at full prices further helped it in improving margins, which were battered with heavier discounts over the last couple of years.
Lower product and freight costs helped the company in expanding its quarterly gross margins by 240 basis points to 47.5%.
The company expects annual adjusted earnings per share to be in the range of 28 cents to 30 cents, compared with a prior range of 24 cents to 27 cents per share.
The company's quarterly revenue fell 5.7% to $1.40 billion from a year ago, that still came ahead of analysts' estimates of $1.34 billion, as per data compiled by LSEG.
It posted quarterly adjusted earnings per share of 8 cents for the quarter ended Dec. 31, beating estimates of 4 cents per share.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shailesh Kuber)