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

Image: Bigstock

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.

1 2
View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.