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Investing.com – Under Armour (NYSE:UA) stock (NYSE:UAA) soared more than 10% in Tuesday’s premarket trading as continuing sales momentum at the sportswear retailer led it to raise its annual guidance for the third time.
Under Armour now expects 2021 annual revenue to be $5.62 billion, up 25% from last time. It had given a forecast of around 20% growth in revenue earlier.
Third-quarter revenue was up 8% at $1.5 billion, a sign that the pandemic-driven demand for casual and sportswear remains sticky. Sales had risen 91% in the second quarter.
Earnings at 31 cents per share blew past estimates, coming in at more than double the estimate as the company worked on executing its cost-savings plan. Cost of products sold fell by 310 basis points. One basis point is one-hundredth of a percent.
The company also took a lower restructuring charge this time compared to last year’s quarter.
Most of the geographies including North America, Asia Pacific and Latin America showed growth as economies reopened and people visited stores to renew their clothing stocks. E-commerce sales fell 4%.
The results were a sharp contrast with the latest updates from rivals Nike (NYSE:NKE) and Adidas (OTC:ADDYY), which had flagged serious supply chain problems due to the closure of factories in south-east Asia.
