Earnings

Under Armour earnings top estimates, but shares fall as supply chain issues hurt growth

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Under Armour shoes are seen inside of a store on November 03, 2021 in Houston, Texas.
Brandon Bell | Getty Images

Under Armour on Friday reported fiscal fourth-quarter profits and sales ahead of analysts’ estimates, fueled by year-over-year growth in North America.

Its shares whipsawed in premarket trading, recently falling less than 1% after rising 7%.

Here’s how the company did in the three-month period ended Dec. 31 compared with what analysts were anticipating, based on Refinitiv estimates:

  • Earnings per share: 14 cents adjusted vs. 7 cents expected
  • Revenue: $1.53 billion vs. $1.47 billion expected

Under Armour reported net income of $109.7 million, or 23 cents a share, compared with $184.5 million, or 40 cents a share, a year earlier. Excluding one-time items, it earned 14 cents a share, beating analysts’ estimates for 7 cents.

Revenue grew to $1.53 billion from $1.4 billion a year earlier. That topped analysts’ expectations for $1.47 billion.

Net revenue in North America rose 15%, while international sales were up 3%.

Last year, Under Armour announced it was changing its fiscal year end date from Dec. 31 to March 31. Following a three-month transition period from Jan. 1, 2022 to March 31, Under Armour’s next fiscal year will run from April 1 to March 31, 2023.

The retailer on Friday gave an outlook for the transition quarter. Sales are expected to be up a mid-single-digit rate, compared with a prior outlook of a low-single-digit increase. It said this forecast includes about 10 percentage points of headwinds tied to reductions in its spring and summer order book from ongoing supply chain constraints.

Read the full earnings press release from Under Armour here.

This story is developing. Please check back for updates.

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