Under Armour (UA) tops expectations but lowers revenue guidance
Under Armour Inc (NYSE: UAA) (NYSE: UA) shares edged slightly higher in early Wednesday trading after the company reported better-than-expected earnings and revenue before the open.
Shares of the sportswear brand are up just over 1% from Tuesday's close at the time of writing.
Under Armour reported Q2 EPS of $0.24, $0.03 better than the analyst estimate of $0.21. Revenue for the quarter came in at $1.6 billion, flat compared to the prior year but above the consensus estimate of $1.57 billion.
The company's wholesale revenue decreased 1% to $940 million, while North American revenue decreased 2% to $991 million and apparel revenue increased 3% to $1.1 billion.
"Our second quarter results, particularly profitability, exceeded our expectations," said Under Armour President and CEO Stephanie Linnartz. "As we execute against our strategic priorities, we will continue to take a balanced approach to driving profitability in the near term while taking the necessary steps to invest in the talent, systems, and processes to drive the top line growth that Under Armour is capable of over the long term."
The company maintained its fiscal 2024 operating income and EPS outlook, although it lowered revenue expectations in response to challenges in North America during the back half of the year.
For fiscal 2024, revenue is now expected to be down 2% to 4% versus the previous expectation of flat to up slightly. EPS expectations are unchanged from the prior guidance of between $0.47 and $0.51.
By Sam Boughedda