Under Armour Q3 profits soar, updates full-year outlook
Strong international sales continue to drive revenues for Under Armour.
For the quarter ended Sept. 30, Under Armour’s net income was $75 million, or 17 cents per share. Adjusted net income was $112 million, or 25 cents per share. This soared passed analyst estimates of 13 cents.
Revenue also increased 2% to $1.44 billion, slightly passing analysts’ expectations of $1.42 billion. International revenue rose 15% to $351 million, a segment that represents 24% of the company’s total sales. However, sales in North America continue to struggle, with the segment reporting a 2% decline to $1.1 billion.
In February, Under Armour announced a 2018 restructuring plan, which detailed expectations to incur total estimated pre-tax restructuring and related charges of approximately $110 million to $130 million. After further review, the company said it now expects to incur approximately $200 million to $220 million of pre-tax restructuring and related charges in 2018. Through the third quarter of 2018, the company has recognized pre-tax costs of $154 million, inclusive of $24 million of pre-tax costs recognized in the third quarter.
"Our third quarter results demonstrate that our multi-year transformation is on track," said Under Armour chairman and CEO Kevin Plank.
"As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences,” he added. “Coupled with increasingly greater business discipline and resulting efficiencies, we continue to gain confidence in our long-term path and ability to deliver for our consumers, customers and shareholders."
The company’s third quarter gains also encouraged the company to raise its full-year expectations. Revenue is expected to increase approximately 3% to 4%, which reflects a low single-digit decline in North America and international growth of approximately 25%. From a product perspective, apparel is expected to grow at a mid-single-digit rate, footwear at a low single-digit rate, and accessories is now expected to decline at a mid-single-digit rate.
The company raised its full-year adjusted earnings per share to be in the range of 19 cents to 22 cents, up from the previous expectation of 16 cents to 19 cents. This excludes the impact of the restructuring efforts.
For the quarter ended Sept. 30, Under Armour’s net income was $75 million, or 17 cents per share. Adjusted net income was $112 million, or 25 cents per share. This soared passed analyst estimates of 13 cents.
Revenue also increased 2% to $1.44 billion, slightly passing analysts’ expectations of $1.42 billion. International revenue rose 15% to $351 million, a segment that represents 24% of the company’s total sales. However, sales in North America continue to struggle, with the segment reporting a 2% decline to $1.1 billion.
In February, Under Armour announced a 2018 restructuring plan, which detailed expectations to incur total estimated pre-tax restructuring and related charges of approximately $110 million to $130 million. After further review, the company said it now expects to incur approximately $200 million to $220 million of pre-tax restructuring and related charges in 2018. Through the third quarter of 2018, the company has recognized pre-tax costs of $154 million, inclusive of $24 million of pre-tax costs recognized in the third quarter.
"Our third quarter results demonstrate that our multi-year transformation is on track," said Under Armour chairman and CEO Kevin Plank.
"As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences,” he added. “Coupled with increasingly greater business discipline and resulting efficiencies, we continue to gain confidence in our long-term path and ability to deliver for our consumers, customers and shareholders."
The company’s third quarter gains also encouraged the company to raise its full-year expectations. Revenue is expected to increase approximately 3% to 4%, which reflects a low single-digit decline in North America and international growth of approximately 25%. From a product perspective, apparel is expected to grow at a mid-single-digit rate, footwear at a low single-digit rate, and accessories is now expected to decline at a mid-single-digit rate.
The company raised its full-year adjusted earnings per share to be in the range of 19 cents to 22 cents, up from the previous expectation of 16 cents to 19 cents. This excludes the impact of the restructuring efforts.