Under Armour on Tuesday reported stronger-than-expected gross sales for the primary quarter, boosted by the retailer’s worldwide enterprise and progress throughout the attire class. Still, weaknesses persist in the U.S., the place rivals Nike and Adidas have stolen market share.
Nike’s U.S. sales slump started to reverse.
Under Armour mentioned Tuesday that its males’s coaching class helped drive attire gross sales up 7 % throughout the first quarter. Footwear gross sales had been up 1 %, whereas equipment gross sales grew three %.
CEO Kevin Plank mentioned the corporate is “confident” it can meet full-year targets introduced again in February. The retailer is anticipating gross sales to extend at a low single-digit share fee, fueled by progress outdoors the U.S. of greater than 25 %.
Rebounding from a tough experience in 2017, the place shares tumbled 50 %, Under Armour has satisfied traders its turnaround plans are working. The inventory has gained again greater than 20 % up to now this 12 months.
“The company has an opportunity to build off a bottom,” Jefferies analyst Randal Konik mentioned in a notice to shoppers final week. “We continue to believe UA is one of 3 brands that matter in athletic.”
Konik mentioned the corporate nonetheless must “fix” its wholesale mannequin, which has been a very sturdy subject in North America, the place Adidas has picked up in reputation and brought shelf house from Nike and others.
However, Konik pointed to Under Armour’s direct-to-consumer enterprise as a momentum driver, and the model continues to select up prospects overseas.