The products are displayed in an Under Armor store in New York, November 4, 2019.
Brendan McDermid | Reuters
Under Armor reported a surprise profit for the holiday quarter on Wednesday, as sales were boosted by strong digital growth.
The sneaker manufacturer also offered an initial outlook for 2021. Sales are expected to grow in large numbers, helped by a return to North American consumer demand.
Its shares increased by more than 3% in premarket trading.
Here’s how the company did for the fourth quarter compared to what analysts expected, based on a survey conducted by Refinitiv:
- Earnings per share: 12 cents, adjusted compared to a loss of 7 cents, expected
- Revenue: $ 1.4 billion compared to $ 1.27 billion, expected
For the fourth quarter, net income rose to $ 184.5 million, or 40 cents a share, from a loss of $ 15.3 million, or 3 cents a share, a year ago. With the exception of one-time expenses, the company earned 12 cents per share, better than the 7-cent loss forecast by analysts.
Sales fell 3% to $ 1.40 billion from $ 1.44 billion a year ago, but surpassed analysts’ estimates of $ 1.27 billion.
The company said its e-commerce sales increased by 25%.
Under Armor shares have risen about 2% in the past 12 months since the market closed on Tuesday. The company has a market cap of $ 9.42 billion.
This story is developing. Please check again for updates.
Find the full press release from Under Armor here.