Under Armor basketball shoes. Shutterstock.
Under Armor Inc raised its full-year revenue forecast on Tuesday after it beat quarterly estimates as the reopening of markets in the United States and Asia fuels demand for the company’s athletic shoes and apparel.
The introduction of Covid-19 vaccines and new rounds of government incentives have boosted consumer confidence for discretionary spending in the first few months of the year, enabling Under Armor to record a 32 percent increase in sales from North America.
Sales of the company’s smaller international segment were up 58 percent, aided by recovery in markets, including China.
The company’s net sales increased from $ 930.2 million in the first quarter ending March 31 to $ 1.26 billion, exceeding the analyst average estimate of $ 1.13 billion according to Refinitiv’s IBES data.
The company said it expects full-year sales to grow at a high teenage rate, compared to previous forecasts of a high single digit increase.
Under Armor said Monday it had agreed to pay a $ 9 million fine to settle the Securities and Exchange Commission costs related to the sportswear manufacturer’s accounting practices.
Class A shares of the Baltimore-based company were up 3 percent in premarket trading.
By Uday Sampath and Mehr Bedi; Editor: Vinay Dwivedi