Under Armour Inc. blew past earnings estimates for its fiscal first quarter on Tuesday, posting a small profit instead of an expected loss, and said it was making no changes to the guidance provided in May.
The Baltimore-based sporting-goods retailer said it had a net income of $8.549 million, or 2 cents a share, for the quarter to June 30, up from $7.682 million, or 2 cents a share, in the year-ago period. Revenue fell to $1.317 billion from $1.349 billion a year ago. The FactSet consensus was for a loss of 2 cents a share and revenue of $1.294 billion.
Under Armour’s wholesale revenue decreased 6% year-over-year to $742 million, and direct-to-consumer revenue increased 4% to $544 million due to a 6% increase in e-commerce revenue, the company said. North America revenue decreased 9% to $827 million, and international revenue increased 12% to $485 million.
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“Our international and direct-to-consumer businesses, both of which realized solid growth in the quarter, continue to deliver aside a challenging consumer retail environment in North America,” Chief Executive Stephanie Linnartz said in a statement. “Based on this performance, we are maintaining our outlook for fiscal 2024.”
The company’s inventory was up 38% year-over-year to $1.3 billion, after rising 44% year-over-year to $1.2 billion during the prior quarter. Under Armour exited its fiscal first quarter with cash and cash equivalents of $704 million.
Under Armour said it is still expecting fiscal 2024 revenue to be flat to slightly higher and for EPS to range from 47 cents to 51 cents.
Related: Under Armour stock reverses lower as high promotions and discounts to continue as inventories keep rising
The class C shares
fell 0.4% Tuesday, while the class A shares
declined 0.5%, compared with the S&P 500 index’s