Under Armour hits the ground running amid higher-than-expected earnings
US sportswear firm Under Armour trumped Wall Street expectations today after raising its forecast for annual profits and posting higher-than-expected revenues for the third quarter of 2018.
Buoyed by higher overseas sales and fewer promotions, the Baltimore-based company has hiked its full-year adjusted earnings per share forecast to between 19 cents and 22 cents from a prior guidance of 16 to 19 cents.
In pre-market trading shares jumped more than 12 per cent, adding to the momentum which has seen the firm's stock value rocket by over 25 per cent since the start of the year.
Revenue for the firm hit $1.44bn (£1.13bn), compared with estimates of $1.22bn.
The upbeat projections come despite a challenging period for Under Armour, which has faced stiff competition from the likes of Nike and Adidas in its US market.
Nomura Instinet analyst Simeon Siegel said: “We have been noting a clear focus on recovering margin and focusing on the health of the business, and with inventory clean, and [gross margin] up, we believe the company is doing just that.”