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Under Armour revenue beats estimates, shares jump

Published 02/13/2018, 07:40 AM
© Reuters. An Under Armour sign is seen outside a store in Chicago
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(Reuters) - Under Armour Inc (N:UA) (N:UAA) beat analysts' estimates for fourth-quarter revenue on Tuesday, as it sold more footwear and apparel through its own stores and online.

The Baltimore-based company's Class C shares were trading nearly 11 percent higher in premarket trading.

The company reported a loss of $87.9 million, or 20 cents per Class C share, in the quarter ended Dec. 31, compared with a profit of $103.2 million, or 23 cents per share, a year earlier.

The reported quarter included a one-time charge of $39 million due to changes in the U.S. tax code.

The sportswear maker, that competes with Nike Inc (N:NKE) and Adidas AG (DE:ADSGn), said it would incur additional restructuring charges between $110 million and $130 million this year, related to closing of facilities and termination of leases.

Net revenue rose 4.6 percent to $1.37 billion, beating analysts' estimates of $1.31 billion, according to Thomson Reuters I/B/E/S.

© Reuters. An Under Armour sign is seen outside a store in Chicago

Excluding items, the company's earnings were in line with estimates.

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