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Under Armour Inc (UAA) reported second-quarter FY21 sales growth of 91% year-on-year, to $1.35 billion, beating the analyst consensus of $1.21 billion.

Wholesale revenue increased 157% Y/Y to $768 million, and direct-to-consumer revenue increased 52% to $561 million. North America rose 101% to $905 million, while international revenue increased 100% to $446 million.

Apparel revenue increased 105% to $874 million, Footwear revenue rose 85% to $343 million, and Accessories revenue increased 99% to $112 million.

Gross profit rose 91.5% Y/Y to $668.8 million, and gross margin expanded by 20 basis points Y/Y to 49.5% of net sales.  The operating margin was 9.0%, and operating income for the quarter was $121 million. Inventory was down 26% Y/Y to $881 million.

Under Armour generate a YTD operating cash flow of $102.24 million held $1.3 billion in cash and equivalents. Adjusted EPS of $0.24 beat the analyst consensus of $0.05.

Outlook: Under Armour raised FY21 adjusted EPS guidance to $0.50 - $0.52 (prior view $0.28 - $0.30), versus the consensus of $0.34. It also raised EPS outlook to $0.14 - $0.16 from the previous expectation of a loss $(0.02) - $(0.04). The company sees FY21 sales growth in the low 20% versus the prior view of high-teens percentage growth. It expects operating income of $215 million - $225 million, up from $105 million to $115 million previously. 

Price action: UAA shares are trading higher by 6.82% at $22.55 in premarket on the last check Tuesday.