Online demand for Under Armour’s apparel and accessories, and stronger Asia-Pacific sales helped it post a surprise holiday-quarter profit and top revenue estimates on Wednesday, sending its shares up 5% in premarket trade.
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The company said revenue in its Asia-Pacific market jumped 26%, cushioning a sharp decline in its Europe, Middle East, and Africa (EMEA) market, where several stores have been closed due to a resurgence in COVID-19 cases.
|UAA||UNDER ARMOUR INC||23.09||+2.35||+11.36%|
While the health crisis has led to a fall in attendance at gyms, it has given people more time to workout at home or opt for outdoor exercises including running and biking, leading to a rise in demand for training shoes, running shorts and t-shirts.
With shoppers still limiting trips outside their homes, a large chunk of that demand has come from people shopping online. Under Armour said its e-commerce sales rose 25%, helping its high-margin direct-to-consumer segment jump 11%
Overall revenue fell about 3% to $1.40 billion in the three months ended Dec. 31, but topped a Refinitiv IBES estimate of $1.27 billion.
Excluding items, Under Armour posted a surprise profit of 12 cents per share, while analysts were expecting a loss of 7 cents.