Under Armour Surges After Raising Forecast for Third Time -Breaking
Investing.com – Unter Armour (NYSE:) stock (NYSE:) soared more than 10% in Tuesday’s premarket trading as continuing sales momentum at the sportswear retailer led it to raise its annual guidance for the third time.
Under Armour is now expecting 2021 revenue of $5.62 billion. This 25% increase over the previous year. It previously forecast revenue growth of 20%.
Revenue for the third quarter was $1.5 million higher than last year, which is an indication that casual and sportwear demand continues to be strong despite the current pandemic. The second quarter saw a 91% increase in sales.
The company’s cost-savings program resulted in earnings of 31 cents per shares, more than twice the estimates. The cost of product sales fell by 310 basis point. One-hundredth percent is one basis point.
The company also took a lower restructuring charge this time compared to last year’s quarter.
As economies opened and customers visited shops to replenish their clothes stocks, most of the regions including North America and Asia Pacific saw growth. The 4% drop in e-commerce sales was due to the recession.
These results contrast sharply with those of the most recent updates by rivals Nike (NYSE:); and Adidas (OTC :), both of which have flagged supply chain issues related to closed factories in South-east Asia.
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