Chris Wang speaks with Nicole Petallides, host of the Watch List and Market Overtime, about Under Armour (ticker UAA) earnings. The company blew out expectations earnings 16 cents vs street expectations of 4 cents. It also raised full year guidance from 12 to 14 cents to 28 to 30 cents. Given that the company already earned 16 cents and the third and fourth quarters are typically their strongest, their guidance seems very conservative and the company will likely blow out earnings for the rest of the year.
In the quarter, sales increased 35% and direct to consumer sales rose +54% with ecommerce extremely strong at 69% growth. Gross margins were their best in over a decade with margins topping 50% for the first time since 2007. The company is making progress in cost containment by cutting out marginal retailers and focusing on full price sales.
Are you bullish or bearish on Under Armour?
