Under Armour reported better-than-expected second-quarter sales and earnings as shoppers returned to its stores.
The athletic apparel company reported a profit of $59.2 in the quarter ended June 30, compared to a loss of $182.9 million, or $0.40 per share, in the year-ago period. Excluding items, Under Armour earned $0.24 per share, crushing analysts’ estimates of $0.6 per share.
Revenue climbed 91% to $1.35 billion, beating estimates for $1.21 billion.
Sales in North America, its largest region, rose 101% year over year to $905 million. International revenue doubled to $446 million.
Wholesale sales rose 157% to $768 million. Direct-to-consumer revenue increased 52% to $561 million, driven by strong growth in owned and operated stores. E-commerce sales fell 18% and represented 39% of Under Armour’s direct-to-consumer business during the quarter.
As previously reported, Under Armour is slashing its wholesale penetration in North America and is investing in its own stores and e-commerce site.
Under Armour’s apparel segment was up 105% compared to last year. Footwear sales rose 85%, boosted by strong demand for running items.
“We are very pleased with Under Armour's better than expected second-quarter results, which reflect solid progress compared to both 2020 and 2019,” said Under Armour president and CEO Patrik Frisk. “Given the continued momentum, we're raising our full-year outlook, which puts us on track to achieving a solid performance in 2021. With the critical mass of our transformation behind us and the continued improvements across product, marketing, and our financial results, I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth."
Under Armour expects fiscal 2021 revenue to rise at a low-20s percentage, compared with a previous forecast of a high-teen percentage increase.