Under Armour continued to outperform expectations in the third quarter as sales in brick-and-mortar locations and in North America rebounded.
The activewear company’s shares rose in premarket trading after it reported earnings that beat expectations and raised its outlook for the full year.
On Tuesday, the Baltimore-based company reported net income of $113.4 million, or 24 cents a share, up from $38.9 million, or 9 cents a share, last year.
Revenue for the period was up 8 percent to $1.5 billion compared to the prior year, with wholesale revenue increasing 10 percent to $911 million and direct-to-consumer revenue up 12 percent to $604 million. The d-to-c results were marked by a strong performance in owned and operated stores that offset a 4 percent decline in e-commerce sales, which now represent 33 percent of the total d-to-c business.
In North America, sales rose 8 percent to $1 billion while international revenue increased 18 percent to $510 million, with the Asia Pacific region up 19 percent the EMEA up 15 percent and Latin America up 27 percent.
By category, apparel revenue increased 14 percent to $1.1 billion and footwear revenue increased 10 percent to $330 million while accessories revenue decreased 13 percent to $126 million.
“Our third-quarter results were driven by strong demand for the Under Armour brand and our ability to execute quickly to meet the needs of our consumers and customers,” said Under Armour president and chief executive officer Patrik Frisk. “With industry-leading innovations, increased marketing efforts to deepen our connection with Focused Performers, and consistent operational discipline — we’re building greater brand affinity and are on track to deliver record revenue and earnings results in 2021.”
For the year, the company is now projecting operating earnings will hit about $425 million, nearly double its previous range of $215 million to $225 million. Excluding the impact of restructuring efforts, adjusted operating income is expected to reach about $475 million compared to the previous expectation of $340 million to $350 million.
Revenue for the full year is now expected to be up about 25 percent compared to the previous expectation of a low-20s percentage increase, reflecting a high-20s percentage growth rate in North America and a mid-30s percentage growth rate in the international business.
In August, the company reported solid second-quarter results and raised its outlook for the year.