The products are displayed at an Under Armor store in New York City on November 4, 2019.
Brendan McDermid | Reuters
Under Armor released a surprising profit for the holiday quarter on Wednesday, as sales were driven by strong digital growth.
The sneaker maker also offered an initial outlook for 2021. It expects sales to increase by a single digit, helped by a recovery in consumer demand in North America.
Its shares jumped more than 3% in pre-market trading.
Here’s how the company fared in the fourth quarter compared to what analysts expected, based on a Refinitiv survey:
- Earnings per share: 12 cents, adjusted, against an expected loss of 7 cents
- Revenue: $ 1.4 billion versus $ 1.27 billion, expected
In the fourth quarter, net income grew to $ 184.5 million, or 40 cents per share, compared to a loss of $ 15.3 million, or 3 cents per share, a year ago. Excluding one-time expenses, the company earned 12 cents per share, better than the 7 cents loss forecast by analysts.
Sales fell 3%, to $ 1.40 billion, from $ 1.44 billion a year ago, but exceeded analysts’ estimates of $ 1.27 billion.
The company said its e-commerce sales grew 25%.
Under Armor’s shares have risen about 2% in the past 12 months, since the market closed on Tuesday. The company has a market value of US $ 9.42 billion.
This story is developing. Please check again for updates.
Find the full Under Armor press release here.