Working out from home: coronavirus pandemic powers Under Armour online sales, surprise profit
The health crisis led to a rise in demand for training shoes, running shorts and t-shirts
Online demand for Under Armour’s apparel and accessories, and stronger Asia-Pacific sales helped it post a surprise holiday-quarter profit and top revenue estimates on Wednesday, sending its shares up 5% in premarket trade.
CLICK HERE TO READ MORE ON FOX BUSINESS
The company said revenue in its Asia-Pacific market jumped 26%, cushioning a sharp decline in its Europe, Middle East, and Africa (EMEA) market, where several stores have been closed due to a resurgence in COVID-19 cases.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UAA | UNDER ARMOUR INC. | 6.84 | +0.06 | +0.92% |
While the health crisis 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.
An Under Armour sign is seen outside a store in Chicago on Oct. 25, 2016. (Reuters/Jim Young)
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%, helping its high-margin direct-to-consumer segment jump 11%
Overall revenue fell about 3% to $1.40 billion in the three months ended Dec. 31, but topped a Refinitiv IBES estimate of $1.27 billion.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Excluding items, Under Armour posted a surprise profit of 12 cents per share, while analysts were expecting a loss of 7 cents.