How Under Armour Managed to Pull Off a Decent Q1 Report

By Chris Lange Updated Jan 12, 12:15AM EST · Published May 1, 8:45AM EDT

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How Under Armour Managed to Pull Off a Decent Q1 Report — © Thinkstock

Under Armour Inc. (NYSE: UAA) released its most recent quarterly results before the markets opened on Tuesday. The company said that it had break-even earnings on $1.19 billion in revenue, while consensus estimates had called for a net loss of $0.06 per share and revenue of $1.12 billion. The first quarter of last year reportedly had a $0.01 per share net loss and $1.12 billion in revenue.

On February 13, Under Armour announced a 2018 restructuring plan, which detailed expectations to incur total estimated pretax restructuring and related charges of roughly $110 million to $130 million. In the first quarter, the firm recognized pretax costs totaling $45 million, consisting of $32 million in cash-related charges and $13 million in noncash charges.

In terms of its segments the company reported as follows:

Apparel sales increased 7.1% year over year to $766.28 million.
Footwear sales increased 0.8% to $271.77 million.
Accessories sales increased 3.4% to $92.16 million.

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Looking ahead to fiscal 2018, the company expects to see net revenues up at a low single-digit percentage rate and EPS in the range of $0.14 to $0.19. The consensus estimates call for $0.17 in EPS on $5.11 billion in revenue.

On the books, Under Armour cash and cash equivalents totaled $283.64 million at the end of the quarter, up from $172.13 million in the same period of last year.

Kevin Plank, Under Armour’s board chair and chief executive, commented:

Our first quarter results demonstrate measured progress against our focus on operational excellence and becoming a better company. As we continue to build our global brand by delivering innovative performance products to our athletes, amplifying our story, further strengthening our go-to-market process, and leveraging our systems to create even deeper consumer connections – we remain confident in our ability to deliver on our full year targets.

Shares of Under Armour closed Monday at $17.76, with a consensus analyst price target of $14.28 and a 52-week trading range of $11.40 to $23.46. Following the announcement, the stock was down 2% at $17.37 in early trading indications Tuesday.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.