(Under Armour) Shares of Under Armour Inc. rose by 10.5% on Tuesday after the company said it expects revenues in 2021 in North America to increase in the high twenties.
The company’s revenue in the third quarter rose by 8% from the prior year to $1.5 billion, helped by apparel wear which ticked higher by 14% to $1.1 billion. Analysts expect the Athletic wear boom to persist until next year, even as offices and schools reopen.
The net income came in at $113 million in the third quarter, up from $38.95 million from prior year. The EPS was $0.31, better than expected $0.15.
Under Armour now projects earnings per share of $0.74 in FY21, higher than previously projected $0.50-0.50 per share, and analysts’ expectation of $0.55 per share.
Revenue is expected to jump by 25% in FY21, up from previous forecast of low twenties and better than analysts projected 22.7% increase.
Under Armour still faces the uncertainty of product availability heading into the holiday season after a months-long factory closure which generates about a third of its products in Vietnam.
UAA: NYSE is up +12.06% on premarket.
