Under Armor reported better-than-expected sales and profits in the second quarter as shoppers returned to its stores.
The sportswear company reported a profit of $ 59.2 in the quarter ended June 30, compared with a loss of $ 182.9 million, or $ 0.40 per share, in the period. ‘last year. Excluding items, Under Armor gained $ 0.24 per share, crushing analysts’ estimates of $ 0.6 per share.
Revenue climbed 91% to $ 1.35 billion, beating estimates of $ 1.21 billion.
Sales in North America, its largest region, increased 101% year-over-year to $ 905 million. International revenues doubled to $ 446 million.
Wholesale sales increased 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 accounted for 39% of Under Armor’s direct-to-consumer activity in the quarter.
As previously reported, Under Armor is reducing its wholesale penetration in North America and investing in its own stores and e-commerce site.
Under Armor’s clothing segment grew 105% year over year. Footwear sales increased 85%, driven by strong demand for running items.
“We are very pleased with Under Armor’s better-than-expected second quarter results, which reflect solid progress from 2020 and 2019,” said Under Armor President and CEO Patrik Frisk. “Given the continued momentum, we are raising our outlook for the full year, which puts us on track to deliver a strong performance in 2021. With the critical mass of our transformation behind us and continuous product improvements, From marketing and our financial results, I believe this year sets a solid foundation that positions us well for our next chapter of profitable growth. “
Under Armor expects fiscal 2021 revenue to grow at a low 20 percent, compared to a previous forecast of a high percent increase.