Under Armour (UA) tops quarterly profit expectations despite sales decline

Under Armour Inc (NYSE: UAA) (NYSE: UA) reported its latest quarterly earnings on Thursday, topping consensus profit estimates.

The sportswear business reported EPS of $0.19 for Q3, $0.08 better than the analyst estimate of $0.11, while revenue for the quarter came in at $1.5 billion, down 6% year-on-year (YoY) and in line with the consensus estimate of $1.5 billion.

Demand for Under Armour products declined across the board, with wholesale revenue down 13%, North America falling 12%, and apparel revenue decreasing 6% YoY.

The company said it experienced a mixed retail environment during the holiday season.

"We were able to deliver better than anticipated profitability and remain on track to achieve our full-year outlook," said Under Armour President and CEO Stephanie Linnartz. "We are working to reset Under Armour toward a path of improved revenue growth and enhanced value creation in the future."

Looking forward, Under Armour sees FY2024 earnings between $0.50 and $0.52 per share versus the consensus of $0.49. Revenue for the period is expected to be down 3% to 4%, tightening the previous expectation of a 2% to 4% decline.

By Sam Boughedda

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