(MENAFN - Baystreet.ca) Under Armour (NYSE:UA) on Tuesday raised its sales and profit outlook for the full year, as the sports apparel maker sees demand for its brand roaring back with shoppers returning to its stores.
It reported first-quarter sales growth of 35%, topping analyst expectations. The company is lapping a period a year earlier when its stores were temporarily shut, and Under Armour had to turn to layoffs and other cost-cutting measures to fight through the health crisis.
"On a two-year stack, that is skipping over 2020, we're running a better, higher quality and more profitable business," CEO Patrik Frisk said during an earnings conference call.
Under Armour's net income grew to $77.8 million, or 17 cents per share, compared with a loss of $589.7 million, or $1.30 per share, a year earlier.
Excluding one-time charges, the company earned 16 cents per share, better than the three cents analysts were anticipating.
Sales rose to $1.26 billion from $930.2 million a year earlier, beating estimates for $1.13 billion.
In North America, sales were up 32%, while they grew 58% in Under Armour's smaller international division, boosted by recoveries in markets that include China.
Online sales rose 69% across the business.
Frisk said the company is seeing strong demand for the brand, as business rebounds across Asia and North America. In the year-ago period, Under Armour's sales tumbled more than 20%, as its business took a blow from the coronavirus pandemic and its stores were forced shut, freezing its turnaround efforts.
The company has also worked on managing its inventories and reducing its reliance on discounting to get rid of dated merchandise. Frisk said those efforts are paying off and helping to boost profits.
UA shares docked 36 cents, or 1.5%, to $23.80.
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