Under Armour said it earned $0.04 per share in the first quarter on revenue of $1.05 billion. Nike’s sales rose 8% last quarter, but it was hurt by the strong dollar and competition from Under Armour.
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On the books, cash and cash equivalents decreased 30% to $157 million at the end of March, compared with $225 million at the end of last year’s first quarter. Consensus estimates call for $0.65 in EPS on $4.96 billion in revenue for the full year. Zacks Investment Research upgraded shares of Under Armour from a “hold” rating to a “buy” rating and set a $96.00 target price for the company in a research note on Thursday, April 7th. Winslow Capital Management LLC now owns 2,147,808 shares of the apparel retailer’s stock valued at $173,135,000 after buying an additional 531,472 shares in the last quarter. Shoes continue to be a growth area for Under Armour, rising 64% to $264 million as Stephen Curry’s signature line of basketball shoes continued to drive sales. Accessories net revenues increased 26% to $80 million from $63 million in the prior year’s period, driven primarily by growth in headwear and bags. The brand has had 24 consecutive quarters – six years – of sales growth of more than 20%.
Looking forward to the full fiscal year 2016, Under Armour updated its sales outlook and expects total revenue to be approximately $5 billion, representing a growth of 26 percent over 2015’s level.
“[Under Armour’s Q1 success] showcases our heightened focus on providing better service across our distribution channels, ensuring that our consumer consistently finds the newest, most premium product from us wherever they shop”, Plank said. This means that over the past quarter there has been an increase of insiders buying their shares of UA in relation to earlier this year. Its women’s business is poised to hit the $1 billion milestone this year.
Shares of Under Armour are up almost 7% to $47 in pre-market trading. The 52 week high Under Armour’s shares have reached is 52.94 whilst the 52 week low for the company’s shares is 31.61.
Despite surpassing Adidas in the U.S.in 2014, Under Armour is still seen as the underdog in the athletic-gear sector. Analysts were looking for revenue of $1.02 billion.
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How fit are the shares of Under Armour and its rivals? Analyst had a consensus of $0.02.
