Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Athletic Wear Demand Drives Under Armour’s Forecasts Raise, Shares Jump

Under Armour Inc raises its annual revenue and profit forecasts. Shutterstock.

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.

In This Article
Topics
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Chronicle the ‘Retail Apocalypse’ and emerging retail models, including DTC brands.

Op-Ed | How Long Can Adidas Surf the ‘Terrace’ Trend?

As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.


How Rent the Runway Came Back From the Brink

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.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024