Under Armour basketball sneakers. Shutterstock.
Under Armour Inc raised its full-year revenue forecast on Tuesday after it topped quarterly estimates, as reopening markets in the United States and Asia fuel demand for the company’s sports shoes and apparel.
The rollout of Covid-19 vaccines and new rounds of government stimulus lifted consumer confidence for discretionary spending in the first few months of the year, helping Under Armour post a 32 percent increase in revenue from North America.
Revenue from the company’s smaller international segment rose 58 percent, helped by recoveries in markets including China.
The company’s net revenue rose to $1.26 billion from $930.2 million in the first quarter ended March 31, beating analysts’ average estimate of $1.13 billion, according to IBES data from Refinitiv.
The company said it expects full-year revenue to rise by a high-teen percentage, compared with a previous outlook of a high-single-digit increase.
Under Armour said on Monday it had agreed to pay a penalty of $9 million to settle Securities and Exchange Commission charges relating to the sportswear maker’s accounting practices.
Class A shares of the Baltimore-based company rose 3 percent in premarket trading.
By Uday Sampath and Mehr Bedi; Editor: Vinay Dwivedi