Under Armour Inc. (NYSE: UAA) released its first-quarter financial results before the markets opened on Thursday. The company said that it had $0.05 in earnings per share (EPS) and $1.2 billion in revenue, which compared with consensus estimates that called for breakeven earnings on $1.18 billion in revenue. The same period of last year had breakeven earnings and $1.19 billion in revenue.
During the latest quarter, revenue increased 2% year over year, or 3% on a currency neutral basis. Also in this time, the company posted a gross margin of 45.2%, driven by product cost improvements, regional mix and prior period restructuring charges, offset by channel mix.
In terms of its segments, the company reported as follows:
- Apparel revenues increased 0.7% year over year to $774.6 million.
- Footwear revenues increased 7.6% to $292.5 million.
- Accessories revenues decreased 11.0% to $82.0 million.
Looking ahead to the 2019 full year, the company expects to see EPS in the range of $0.33 to $0.34 and revenues growing 3% to 4% year over year. Consensus estimates call for $0.34 in EPS and $5.36 billion in revenue for the year.
Kevin Plank, board chair and chief executive of Under Armour, commented:
Our first quarter results demonstrate our unwavering commitment to protecting and growing our premium performance athletic brand through a disciplined go-to-market process that delivers innovative products and experiences to make athletes better. As we execute against our long-term plan, Under Armour will emerge from 2019 and our ‘Protect This House’ chapter as an even stronger brand and company.
Shares of Under Armour traded up more than 8% to $23.90 just after Thursday’s opening bell. The 52-week range is $16.52 to $24.96, and the consensus price target was last seen at $21.28.