What happened
Shares of Under Armour Inc. (UA 0.32%) (UAA 0.77%) were up 21.7% as of 12:15 p.m. EDT Tuesday, after the performance athletic-apparel and footwear specialist announced strong third-quarter results and increased its full-year guidance.
On the former, Under Armour's revenue climbed 2.4% year over year to $1.443 billion; this translated to net income of $75.3 million, or $0.17 per share, up from $0.12 per share in the same year-ago period. By comparison -- and though we don't usually pay close attention to Wall Street's demands -- consensus estimates predicted earnings of $0.13 per share on revenue of $1.41 billion.
IMAGE SOURCE: UNDER ARMOUR.
So what
Under Armour's top-line growth included a 4% increase in sales from its core wholesale business, to $914 million, and 32% growth from its direct-to-consumer segment, to $465 million. Geographically, 15% growth in sales from international markets (to $351 million) more than offset a modest 2% decline from North America (to $1.1 billion).
"Our third quarter results demonstrate that our multi-year transformation is on track," added Under Armour chairman and CEO Kevin Plank in a press release. "As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences."
Now what
Better yet, Under Armour now expects revenue this year to increase 3% to 4% from 2017, with adjusted earnings per share of $0.19 to $0.22. Under Armour had previously declined to offer revenue guidance for 2018. But the latter range marks a notable improvement from its previous outlook for full-year earnings per share of $0.14 to $0.19.
