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Under Armour Stock Rose Due to Q1 Results, Earnings Outlook

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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.

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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.

Guidance upgraded

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.

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