The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Under Armour Inc. reported third-quarter profit that beat analysts' estimates, helped by growth overseas and its push into new categories such as basketball sneakers.
Earnings rose to 29 cents a share in the period, the Baltimore-based company said in a statement Tuesday. Analysts had projected 25 cents. Sales climbed 22 percent to $1.47 billion in the period, compared with a projection for $1.45 billion.
The results helped allay concerns that Under Armour’s growth run is sputtering. The company, which has its roots in football apparel, is turning to shoes and other areas to expand. Footwear revenue climbed 42 percent last quarter, boosted by running and basketball sneakers. International sales jumped 74 percent.
"Under Armour is a growth company," chief executive officer Kevin Plank said in the statement. "This marks our 26th consecutive quarter of 20-plus-percent revenue growth, demonstrating the strength of the Under Armour brand."
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The growth question has dogged Under Armour’s stock this year, with investors wondering if it can keep up its torrid sales increases. To maintain its pace, the company has been expanding outside the US to Europe and Asia and into new categories like soccer and golf.
But with athletic clothes becoming more mainstream, competitors have multiplied. And traditional sporting-goods retailers, which are Under Armour’s largest customers, have been struggling. Sports Authority Inc., once the industry’s biggest retailer, agreed to liquidate in May.
All this has raised doubts about Under Armour’s future, and more than 20 percent of the company’s outstanding shares are being shorted. The stock had declined 9 percent this year through Monday. It was little changed in early trading on Tuesday.
By Matt Townsend; editors: Nick Turner and Kevin Orland.
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