Under Armour shares initially jumped more than 5 percent on Tuesday after the sneaker maker reported better-than-expected fourth-quarter earnings and sales, boosted by apparel sales and growth overseas.
The company earned 9 cents per share on an adjusted basis, topping expectations of 4 cents, based on a poll by Refinitiv.
Sales during the quarter were $1.39 billion, again ahead of expectations for $1.38 billion.
In the U.S., Under Armour said sales fell 6 percent during the fourth quarter to $965 million, while international sales climbed 28 percent on a currency neutral basis to $395 million and now account for 28 percent of total revenue.
It said apparel sales were up 2 percent, fueled by its training business. Footwear sales were down 4 percent, as Under Armour said it sold less shoes in discount stores during the holiday period. Accessories sales declined 2 percent.
The retailer didn’t make any changes to its outlook for 2019, which it laid out in December.
It’s still calling for sales to be up 3 to 4 percent in 2019, with results “relatively flat” in North America. Wall Street was largely disappointed when Under Armour announced these targets, as they imply the focus this year will still be on investing, and that more meaningful growth won’t come until 2020 or later.
Under Armour shares have climbed more than 50 percent from a year ago.
This is a developing story. Please check back for updates.