Under Armour (UAA) Beats On Q1 Earnings, Raises '21 View

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In spite of a challenging backdrop, Under Armour, Inc. (UAA Quick Quote UAA - Free Report) reported stellar first-quarter 2021 results that gained from strength in both North America and international regions as well as robust e-commerce sales. Markedly, both the top and the bottom lines not only surpassed the Zacks Consensus Estimate but also improved year over year. This Baltimore-based company's upbeat performance highlighted its improved operating model and investments that helped meet strong demand.

Under Armour reported adjusted earnings of 16 cents a share that fared far better than the Zacks Consensus Estimate of 4 cents. The bottom line also showcased a sharp improvement from a loss of 34 cents reported in the year-ago period.

Meanwhile, net revenues of $1,257.2 million comfortably outpaced the Zacks Consensus Estimate of $1,124 million, thus marking the fourth straight beat. The top line surged 35.1% on a year-over-year basis. While wholesale revenues rose 35% year over year to $800 million, direct-to-consumer revenues increased 54% to $437 million buoyed by 69% jump in e-commerce sales.

The stronger-than-anticipated results prompted management to raise full-year view. We note that shares of this Zacks Rank #2 (Buy) company has increased 16.8% compared with the industry’s rally of 12.4% in the past three months.

Under Armour, Inc. Price, Consensus and EPS Surprise

Under Armour, Inc. Price, Consensus and EPS Surprise

Under Armour, Inc. price-consensus-eps-surprise-chart | Under Armour, Inc. Quote

Let’s Take an Insight

By product category, Apparel revenues jumped 35.4% year over year to $810 million, while Footwear revenues increased 47.4% to $309 million. Revenues from the Accessories category surged 73.3% to $117.4 million. Meanwhile, Licensing revenues rose 8.6% to $21.7 million.

Net revenues from North America increased 32.3% to $805.7 million. Revenues from international business grew 57.8% (or up 50.2% on a currency-neutral basis) to $452 million. Within international business, net revenues from Asia-Pacific and EMEA increased 119.7% and 40.6% to $210.2 million and $193.9 million, respectively. We note that revenues from the Latin America region tumbled 9% to $48.3 million.

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