Upbeat first-quarter results
Under Armour (UAA) stock has risen 4.3% as of 11:38 AM EST on May 2. The company announced better-than-expected first-quarter results.
Under Armour’s revenues grew 1.6% to $1.20 billion in the first quarter and beat analysts’ forecast of $1.18 billion. Under Armour’s top-line growth was driven by a 12% rise in international revenues. The growth was partially offset by a 2.8% decline in North America revenues to $843 million. Excluding the impact of currency fluctuations, Under Armour’s revenues grew 3% in the first quarter.
Under Armour’s North America business has been under pressure due to growing competition from players like Nike (NKE) and Adidas. Columbia Sportswear (COLM) has been delivering a strong performance in the US market. In the first quarter, Columbia Sportswear’s overall sales grew 7.8% to $654.6 million due to a 13.6% rise in US sales to $412.2 million.
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Under Armour’s EPS was $0.05 in the first quarter compared to the break-even earnings expected by analysts.
Under Armour kept its 2019 revenue guidance intact but raised its earnings outlook for the year. Under Armour continues to expect its 2019 revenue growth to be 3%–4% with its revenues in North America remaining unchanged. Under Armour expects low double-digit growth in the international business.
The company expects its 2019 EPS to be $0.33–$0.34 compared to the previously issued outlook range of $0.31–$0.33.
Under Armour stock rose 24.7% on a year-to-date basis compared to a 15.9% and 17.2% rise in Nike and Columbia Sportswear’s stock prices, respectively, as of May 1.