Under Armour revenue beats estimates, shares jump

Under Armour revenue beats estimates, shares jump

Under Armour Inc on Tuesday reported quarterly revenue that beat analysts' estimates, as it sold more footwear and apparel through its own stores and online.

An Under Armour sign is seen outside a store in Chicago
An Under Armour sign is seen outside a store in Chicago, Illinois, U.S., October 25, 2016. REUTERS/Jim Young

REUTERS: Under Armour Inc beat analysts' estimates for fourth-quarter revenue on Tuesday, as it sold more footwear and apparel through its own stores and online.

The Baltimore-based company's Class C shares were trading nearly 11 percent higher in premarket trading.

The company reported a loss of US$87.9 million, or 20 cents per Class C share, in the quarter ended Dec. 31, compared with a profit of US$103.2 million, or 23 cents per share, a year earlier.

The reported quarter included a one-time charge of US$39 million due to changes in the U.S. tax code.

The sportswear maker, that competes with Nike Inc and Adidas AG , said it would incur additional restructuring charges between US$110 million and US$130 million this year, related to closing of facilities and termination of leases.

Net revenue rose 4.6 percent to US$1.37 billion, beating analysts' estimates of US$1.31 billion, according to Thomson Reuters I/B/E/S.

Excluding items, the company's earnings were in line with estimates.

(Reporting by Nivedita Balu in Bengaluru; Editing by Shounak Dasgupta)

Source: Reuters

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