Under Armour Inc. is continuing to make progress with its turnaround plan as it strives to catch up with its competitors and move away from discounts.
The Baltimore-based ath-leisure brand’s first-quarter net income was $22 million, or 5 cents per share, compared to a loss of $30.2 million, or 7 cents per share, a year earlier. Analysts at Factset had predicted break even.
At the same time, net revenue was up 2 percent to $1.2 billion, just beating analysts’ expectations for $1.18 billion.
Within that, it was a mixed bag, with North America revenue decreasing 3 percent to $843 million and the international business up 12 percent to $328 million.
For the fiscal year as a whole, revenue is expected to be up about 3 percent to 4 percent reflecting relatively flat results for North America and a low-double-digit percentage rate increase in the international business.
Earnings per share should be in the region of between 33 cents and 34 cents, higher than the previously expected 31 cents to 33 cents.
“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,” said Under Armour chairman and chief executive officer Kevin Plank.
In December, the company held an investor day — the first in three years, which was a chance for it to shift focus toward its comeback plan and away from the roiling controversy stemming from revelations that, until recently, Under Armour executives were permitted to expense strip club visits.
It has since said Tchernavia Rocker would be joining the group in the newly created position of chief people and culture officer to show just how serious it is about changing its culture after a difficult 2018.