Under Armour spikes after big revenue beat
- Under Armour posted better-than-expected revenue on Monday and the stock is surging in pre-market trading.
- The company is undergoing a transformation as it seeks to reverse declining sales.
- You can track Under Armour shares in real-time here>>
Shares of Under Armour are up more than 12% ahead of Tuesday's opening bell after the company posted better-than-expected fourth-quarter revenue.
The Baltimore-based athletic brand said it brought in $1.365 billion in revenue to close out 2017, 3.8% more than expected. However, it posted no profit on a per share basis, missing the $0.03 that Wall Street was anticipating.
The company also disclosed a one-time tax hit of $39 million stemming from the recently updated tax law, as well as two additional restructuring charges of $110 million and $130 million this year related to the closing of facilities and termination of leases, Reuters reported.
"After years of rapid growth and building a globally recognized brand, the dynamic landscape of 2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company," CEO Kevin Plank said in a press release. "A year into this journey, our fourth quarter and full year results demonstrate that the tough decisions we're making are generating the stability necessary to create a more consistent and predictable path to deliver long-term value to our shareholders."
Under Armour has been undergoing a pivotal change as it seeks to reverse declining revenues and sales. The brand has been hit particularly hard by the "retail apocalypse," as North America accounts for 75% of its business, Zacks reported.
The stock has declined 25.2% in the past year.
