Under Armour reported a quarterly windfall profit and increased sales, helped by the company’s growth in digital commerce and keeping its expenses in check.
The company also announced its preliminary forecast for 2021 despite the instability caused by the pandemic, and said that sales will rise by a single high percentage, supported by improved demand for its products in North America.
The company published results for 2020, which showed a decline in revenue of 15%, but fourth-quarter revenue exceeded analysts’ expectations to reach $1.4 billion instead of expectations of $1.27 billion, in addition to its adjusted earnings of 12 cents per share, compared to an expected value of only 7 cents.
This sent the company’s shares up more than 10% in early trading, and it now has a market capitalization of $9.42 billion.
According to fourth-quarter results reports, the company achieved net income growth of $184.5 million, or 40 cents per share, compared to a loss of $15.3 million, or 3 cents per share, in the same period last year.
The company recently announced a $550-600 million restructuring plan aimed at helping increase profits and cash in the company, and recorded pre-tax fees of $62 million related to the company’s plan in the fourth quarter, in which sales fell 3% from $1.44 billion last year to just 1.4 billion, but topping analysts’ expectations of $1.27 billion.
Wholesale revenue decreased 12%, while the company’s direct-to-consumer business grew 11%, supported by a 5% increase in its online commerce sales.
But the company’s business has weakened significantly in its North American headquarters, where its sales fell by 6%, while its revenues from international markets increased by 7%, and the company expects to increase sales by 20% year-on-year in the first quarter of 2021.