Under Armour jumps as turnaround plan shows signs of working
- Under Armour shares rose more than 4% in pre-market trading after the company beat first quarter expectations for earnings and revenue.
- The company appears to be recovering from a slowdown in business and management issues.
- Watch Under Armour trade live.
The athletic-apparel marker Under Armour gained more than 4% in pre-market trading on Thursday after the company posted better than expected first-quarter results.
The company recorded earnings of $0.05 a share, beating the $0.01 that analysts surveyed by Bloomberg were looking for. Overall, adjusted net earnings came in at $23.3 million.
Revenues of $1.21 billion edged out the $1.18 billion that was expected. Importantly, the company's revenues were "relatively flat" in North America with stronger growth internationally.
Under Armour raised its forecast for 2019 operating income by $10 million to a range between $220 million to $230 million.
"Our first quarter results demonstrate our unwavering commitment to protecting and growing our premium performance athletic brand through a disciplined go-to-market process that delivers innovative products and experiences to make athletes better," said Under Armour Chairman and CEO Kevin Plank.
The news was welcomed by investors as the company recovers from a series of stumbles over the past year. These included winding down over $1 billion of inventory as sales stalled, teens shifting away from major brands, and a scandal involving the patronage of strip clubs by company employees which included CEO Kevin Plank.
Shares are currently trading near $20.50, less than half of their 2015 peak of $52.05.
Under Armour is up 22% this year.
