By Baltimore-based sporting goods and footwear maker, Under Armour Inc., saw its stock (UA) rise by 5% early Wednesday following the release of its fiscal second-quarter earnings report. However, the stock later pared back these gains to 1.5%. Despite lowering its revenue guidance, the company reported net income of $109.6 million, or 24 cents a share, for the quarter ending September 30. This was an increase from $86.9 million, or 19 cents a share, during the same period last year.
While revenue fell to $1.567 billion from $1.574 billion a year ago, the company’s results still surpassed expectations. The FactSet consensus projected earnings per share (EPS) of 20 cents and revenue of $1.566 billion. Under Armour CEO Stephanie Linnartz expressed satisfaction with the company’s performance, stating that profitability exceeded their own expectations.
However, she noted that challenges in North America during the latter half of the year prompted a downward revision of revenue expectations for fiscal 2024. Under Armour now anticipates a 2% to 4% decline in revenue during this period, compared to their previous forecast of flat to slightly up growth. Nevertheless, the company stands by its EPS guidance of 47 cents to 51 cents for fiscal 2024.
Year-to-date, Under Armour’s stock has fallen by 25%, whereas the S&P 500 has gained 14%.
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