Under Armour Inc raised its annual forecasts on Tuesday after its quarterly results topped estimates on strong demand for its athletic apparel and footwear, while customers return to gyms and yoga classes following easing of coronavirus curbs.
Shares in the company, whose revenue in three of its biggest markets more than doubled in the second quarter, rose 5 percent in premarket trade.
Athletic apparel makers, including Under Armour, Nike and Adidas AG, received a sales boost from customers turning to healthy living and outdoor experiences such as hiking and jogging when gyms were temporarily closed.
Reopening of offices and bars is expected to shift some consumer spending toward dressier apparel, but analysts expect the resumption of team sports in schools and colleges in Europe and North America to help counter the impact of any such shift.
Under Armour forecast 2021 adjusted earnings per share of 50 cents to 52 cents, compared with a previous outlook of 28 cents to 30 cents, as it expects to benefit from higher prices.
The company also said it expects 2021 revenue to rise in low-20s percentage, compared with a previous outlook of a high-teen percentage increase.
Analysts on average expect profit per share of 35 cents and revenue growth of 19.5 percent for 2021.
In the second quarter ended June 30, net revenue at Under Armour’s apparel division more than doubled to $874.2 million, helping overall net revenue rise 91 percent to $1.35 billion.
Analysts on average had expected net revenue of $1.21 billion, according to IBES data from Refinitiv.
On an adjusted basis, Under Armour earned 24 cents, crushing estimates of six cents.
German sportswear company Puma last week reiterated a positive mid-term outlook for the sector.
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