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.
Under Armour Inc raised its annual revenue and profit forecasts on Tuesday, as people seek comfortable casuals and athletic wear with their pandemic-hit social life still irregular and offices yet to open.
Shares of the company jumped 10.5 percent after the athletic wear maker said it expected 2021 revenue in North America, a major market, to growth in high twenties.
Athletic apparel makers, including Nike and Adidas AG, have booked outsized sales benefits from people shunning dressier apparel for joggers, hoodies and other smart casuals that catered to their needs for workout wear as well as comfortable day outfits.
Analysts believe the athletic wear boom could last at least through next year, even as schools and offices reopen.
ADVERTISEMENT
Under Armour’s forecast raise comes at a time when months-long factory closures in Vietnam, where it sources about one-third of all its products from, have raised doubts about the availability of its products during the all-important holiday season and beyond.
It forecast 2021 adjusted earnings per share to reach about 74 cents, compared with its prior range of 50 cents to 52 cents. Analysts on average expect profit per share of 55 cents, according to Refinitiv IBES.
It expects 2021 revenue to increase about 25 percent versus its previous forecast in low twenties, and compared with analysts’ average estimate of a 22.7 percent rise.
The clothing brand has also been spending more on marketing for new launches, including women’s SmartForm bra and new Hovr shoe models. It recently launched videos with athletes Chase Young, Trent Alexander-Arnold and Ty Harris wearing its apparel.
Net revenue increased 8 percent to $1.55 billion in the third quarter ended Sept. 30, beating estimates of $1.48 billion.
On an adjusted basis, the company earned 31 cents per share, above estimates of 15 cents.
By Praveen Paramasivam; Editor: Shinjini Ganguli
Learn more:
ADVERTISEMENT
What’s Driving Activewear’s Endless Boom?
Sportswear companies are upgrading their outlooks for the year as consumers’ appetite for yoga pants and joggers shows no sign of letting up.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.