Under Armour Inc (NYSE:UAA) early Tuesday posted in-line fourth quarter earnings results and offered a relatively weak outlook for 2018, as it continues to struggle amid rising competition.
The Baltimore-based athletic footwear and apparel maker reported Q4 net EPS of $0.00 (or breakeven), which was in-line with the Wall Street consensus estimate of ($0.00).
Revenues rose 4.6% from last year to $1.37 billion, beating analysts’ view for $1.31 billion. UAA noted that sales were up 4% on a currency neutral basis.
Revenue to wholesale customers fell 1% to $733 million, while direct-to-consumer sales jumped 11% to $575 million. Direct-to-consumer thus represented around 42% of global revenues in the latest period.
North American sales declined 4%, while international revenues surged 47% (or 43% excluding currency effects).
Looking ahead, Under Armour forecast full-year EPS of $0.14 to $0.19, which would miss the current Wall Street consensus estimate of $0.22 per share. Net revenue is expected to rise in the low single-digit percentage range, versus analysts’ view of a 3.3% gain.
The company commented via press release:
“After years of rapid growth and building a globally recognized brand, the dynamic landscape of 2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company,” said Under Armour Chairman and CEO Kevin Plank. “A year into this journey, our fourth quarter and full year results demonstrate that the tough decisions we’re making are generating the stability necessary to create a more consistent and predictable path to deliver long-term value to our shareholders.”
Under Armour Inc shares rose $0.02 (+0.14%) in premarket trading Tuesday. Year-to-date, UAA has declined -1.39%, versus a -0.57% rise in the benchmark S&P 500 index during the same period.
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