BALTIMORE, United States — Under Armour Inc forecast full-year revenue above analysts' estimates on Friday, boosted by a surge in online demand from shoppers looking for running shoes and other fitness gear for outdoor workouts.
The Baltimore-based company's shares rose 5 percent in premarket trading, as it also announced the sale of its MyFitnessPal exercise tracking platform for $345 million to private equity firm Francisco Partners.
While the Covid-19 pandemic has caused a fall in attendance at gyms, it has given people more time to work out at home or adopt solo outdoor exercises like running or biking. That drove demand for Under Armour's HOVR training shoes as well as its running shorts and T-shirts.
Under Armour said its direct-to-consumer business jumped 17 percent in the third quarter as online shopping surged with people making fewer trips to stores.
Overall, quarterly revenue stayed roughly flat at $1.43 billion for the third quarter ended September 30, but beat analysts' estimates of $1.16 billion.
Net income fell to $38.9 million, or 9 cents per share, from $102.3 million, or 23 cents per share, a year earlier, as the company incurred over $70 million in restructuring and asset impairment charges.
It forecast full-year revenue to fall in the high-teen percentage, compared with analysts' average estimate of a 25.7 percent drop, according to IBES data from Refinitiv.
The company said it expects full-year adjusted loss of 47 cents per share to 49 cents per share, smaller than the 72 cents per share loss estimated by analysts.
By Uday Sampath; editor: Saumyadeb Chakrabarty.