Under Armour store, Shanghai. Shutterstock.
Under Armour Inc beat quarterly revenue estimates on Wednesday, helped by a surge in online demand from shoppers looking for athletic apparel for workouts, sending its shares up 4 percent in premarket trade.
While the Covid-19 pandemic has led to a fall in attendance at gyms, it has given people more time to workout at home or opt for outdoor exercises including running and biking, leading to a rise in demand for training shoes, running shorts and t-shirts.
With shoppers still limiting trips outside their homes, a large chunk of that demand has come from people shopping online. Under Armour said its e-commerce sales rose 25 percent.
The company’s revenue fell to $1.40 billion from $1.44 billion in the fourth quarter ended December 31, but topped analysts’ estimates of $1.27 billion, according to IBES data from Refinitiv.
Under Armour also said it expects revenue growth percentage to be in high single-digits in 2021, boosted by growth in its North America as well as international markets.
By Praveen Paramasivam; Editor: Vinay Dwivedi