After backing winners in the NBA, PGA Tour and NFL, Under Armour
Inc. beat Wall Street's expectations Thursday for second-quarter
earnings and revenue.
The company also raised its full-year guidance for sales to
$3.84 billion from $3.78 billion. Shares rose 2.7% in premarket
trading.
Under Armour has been working to gain traction in footwear,
running and basketball in recent years, as well as in the fitness
industry. The Baltimore-based company surpassed Adidas AG last year
to become the second-ranked seller of sports apparel and footwear
in the U.S., according to retail-sales figures collected by
SportScanInfo and Sterne Agee.
Under Armour's second-quarter apparel sales climbed 23%.
Footwear had a 40% rise, fueled by the popularity of Stephen Curry,
who led the Golden State Warriors to an NBA championship, as well
as continued growth in the running category, the company said.
Under Armour also has on its endorsement roster Tom Brady of the
NFL's New England Patriots, which won the Super Bowl earlier this
year, and Jordan Spieth, the golfer who captured the Masters in
April and the U.S. Open in June.
For the quarter, Under Armour reported a profit of $14.8
million, or seven cents a share, down from $17.7 million, or eight
cents a share, a year earlier. Revenue climbed 29% to $783.6
million from $609.7 million.
Analysts polled by Thomson Reuters expected the company to post
earnings of five cents a share on revenue of $761 million.
Earlier this month, Under Armour hired Dallas Mavericks Chief
Executive Terdema Ussery as president of global sports. Mr. Ussery
is slated to start in that role in September.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
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