Under Armor results, quarterly estimates, boosting profit prospects
PHILOTOOTH: A Screen for Under Armor Goods is Watched in an Athletic Store in New York, USA, August 1, 2017. REUTERS / Shannon Stapleton / File Photo
(Reuters) – Under Armor Inc ( UA.N ) ( UAA.N ) increased its full-year return forecast on Tuesday after reporting quarterly results as peaked Wall Street estimates, as the sportswear producer benefited from higher foreign sales and lower spending.
Shareholding in the Baltimore-based company, which has risen about 26 percent this year, as it tries to restore momentum in the struggle to become one of the major players in worldwide sportswear, rose 5.6 percent to 19.2 dollar in premarket trading.
The company has used heavily on international markets as it changes its focus in North America, where sales have stagnated in the face of stiff competition from sneakiers like Nike Inc ( NKE.N ) and Adidas AG ( ADSGn.DE ).
The company increased its full-year adjusted earnings per share guidance to between 19 cents and 22 cents from a previous guidance of 16 to 19 cents.
Net sales increased by 2.4 percent to $ 1.44 billion, passing the analysts average estimate of $ 1.42 billion, according to Refinitive data.
Net profit increased to $ 75.3 million, or 17 cents per share, in the quarter ended September 30, from $ 54.2 million, or 12 cents per share, a year earlier
. Besides certain items, Under Armor received 25 cents per piece, beat analysts' estimates of 12 cents.
Reporting of Uday Sampath in Bengaluru; Editing Arun Koyyur
