Under Armour Shares Spike On Q3 Earnings Beat, Raised FY21 Outlook

Under Armour Inc UA reported third-quarter FY21 sales growth of 7.9% year-on-year, to $1.55 billion, beating the analyst consensus of $1.48 billion.
Wholesale revenue increased 10% Y/Y to $911 million, and direct-to-consumer revenue rose 12% to $604 million.
Apparel revenue grew 14% Y/Y, Footwear climbed 10%, while Accessories revenue decreased 13%.
The gross profit rose 15% Y/Y to $788 million, and the gross margin increased 310 basis points Y/Y to 51%.
The operating margin expanded 700 basis points to 11.1%, and operating income for the quarter nearly tripled to $172 million.
The company held $1.3 billion in cash and equivalents as of September 30, 2021. Cash provided by operating activities for the nine months totaled $209.8 million.
Adjusted EPS of $0.31 beat the analyst consensus of $0.10.
Outlook: Under Armour raised FY21 sales growth outlook to about 25% Y/Y (prior view low 20% range).
The company raised the FY21 adjusted EPS outlook to about $0.74 (prior view $0.50 - $0.52).
Price Action: UA shares are trading higher by 15.3% at $21.94 on the last check Tuesday.

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