The products are displayed at an Under Armor store in New York City on November 4, 2019.
Brendan McDermid | Reuters
Under Armor reported a surprise profit for the holiday quarter on Wednesday, as sales were driven by strong digital growth.
The sneaker maker also offered an initial outlook for 2021. It expects sales to rise in the high single digits, helped by a rebound in consumer demand in North America.
Its shares rose more than 3% in premarket trading.
Here’s how the company fared during the fourth quarter compared to what analysts expected, according to a Refinitiv survey:
- Earnings per share: 12 cents, adjusted, versus a loss of 7 cents, expected
- Revenue: $ 1.4 billion vs. $ 1.27 billion, expected
For the fourth quarter, net income grew to $ 184.5 million, or 40 cents a share, compared with a loss of $ 15.3 million, or 3 cents a share, a year ago. Excluding one-time charges, the company earned 12 cents a share, better than the 7-cent loss forecasted by analysts.
Sales fell 3% to $ 1.40 billion from $ 1.44 billion a year ago, but beat analyst estimates of $ 1.27 billion.
The company said its e-commerce sales were up 25%.
Shares of Under Armor are up about 2% in the last 12 months, at the close of the market on Tuesday. The company has a market capitalization of $ 9.42 billion.
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Find Under Armor’s full press release here.