Under Armour revenue beats estimates, shares jump

News

(Reuters) – Under Armour Inc (UA.N) (UAA.N) beat analysts’ estimates for fourth-quarter revenue on Tuesday, as it sold more footwear and apparel through its own stores and online. The Baltimore-based company’s Class C shares were trading nearly 11 percent higher in premarket trading. The company reported a loss of $87.9 million, or 20 cents per Class C share, in the quarter ended Dec. 31, compared with a profit of $103.2 million, or 23 cents per share, a year earlier. The reported quarter included a one-time charge of $39 million due to changes in the U.S. tax code. The sportswear maker, that competes with Nike Inc (NKE.N) and Adidas AG (ADSGn.DE), said it would incur additional restructuring charges between $110 million and $130 million this year, related to closing of facilities and termination of leases. Net revenue rose 4.6 percent to $1.37 billion, beating analysts’ estimates of $1.31 billion, according to Thomson Reuters I/B/E/S. Excluding items, the company’s earnings were in line with estimates. Reporting by Nivedita Balu in Bengaluru; Editing by Shounak DasguptaOur Standards:The Thomson Reuters Trust Principles.
Source: Reuters