Under Armour Inc. (NYSE: UAA) released its most recent quarterly results before the markets opened on Tuesday. The company said that it had break-even earnings on $1.19 billion in revenue, while consensus estimates had called for a net loss of $0.06 per share and revenue of $1.12 billion. The first quarter of last year reportedly had a $0.01 per share net loss and $1.12 billion in revenue.
On February 13, Under Armour announced a 2018 restructuring plan, which detailed expectations to incur total estimated pretax restructuring and related charges of roughly $110 million to $130 million. In the first quarter, the firm recognized pretax costs totaling $45 million, consisting of $32 million in cash-related charges and $13 million in noncash charges.
In terms of its segments the company reported as follows:
- Apparel sales increased 7.1% year over year to $766.28 million.
- Footwear sales increased 0.8% to $271.77 million.
- Accessories sales increased 3.4% to $92.16 million.
Looking ahead to fiscal 2018, the company expects to see net revenues up at a low single-digit percentage rate and EPS in the range of $0.14 to $0.19. The consensus estimates call for $0.17 in EPS on $5.11 billion in revenue.
On the books, Under Armour cash and cash equivalents totaled $283.64 million at the end of the quarter, up from $172.13 million in the same period of last year.
Kevin Plank, Under Armour’s board chair and chief executive, commented:
Our first quarter results demonstrate measured progress against our focus on operational excellence and becoming a better company. As we continue to build our global brand by delivering innovative performance products to our athletes, amplifying our story, further strengthening our go-to-market process, and leveraging our systems to create even deeper consumer connections – we remain confident in our ability to deliver on our full year targets.
Shares of Under Armour closed Monday at $17.76, with a consensus analyst price target of $14.28 and a 52-week trading range of $11.40 to $23.46. Following the announcement, the stock was down 2% at $17.37 in early trading indications Tuesday.
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