Under Armor shares fell on Tuesday after the sneaker reported better-than-expected fourth-quarter earnings and revenues, sustained by apparel sales and foreign growth.
Under Armor in the fourth quarter gained 9 cents per share on an adjusted basis, exceeding expectations of 4 cents per share in a Refinitiv analyst survey.
Sales increased 1
Under Armor said sales in the United States fell 6% during the fourth quarter to $ 965 million, while international sales rose 28% on a neutral basis to $ 395 million and represent 28% of revenue Total.
He said that sales of clothing increased by 2%, fueled by his training activities. Footwear sales fell 4%, as Under Armor said they had sold less shoes at discount stores during the holiday season. Sales of accessories decreased by 2 percent.
The retailer made no changes to his forecasts for 2019, which he initially expected in December.
He still calls for sales to be "relatively flat" in North America this year, but generally 3% to 4%. Wall Street was widely disappointed when Under Armor announced these goals. Analysts said that at the moment they imply that attention this year will still be on investment and that more significant growth will not come until 2020 or later.
Under Armor is struggling with how to grow sales in the United States in a loss-making landscape of Adidas, Nike and Lululemon. Part of his efforts to change things included cutting staff, looking for ways to cut excess inventory by accumulating in warehouses and promising more attention to new sneakers and women's items.
Under Armor said inventory levels fell 12% in the fourth quarter to $ 1 billion.
Tuesday morning, in a telephone call with analysts, CEO Kevin Plank declared that the company intends to remain faithful to its "performance", despite the wear and tear of "athleisure" has acquired greater momentum in the United States in recent times. "We get athleisure … but we believe that Under Armor was born in the field," Plank said. "It's technical in its nature."
Some of the retailer's best-selling footwear brands include Project Rock, Curry 6 and its Hovr sneakers. Under Armor also recently announced that it will be the space partner of the space company Virgin Galactic, which will create space suits and customized shoes for astronauts.
Under Armor shares have increased by over 50% compared to a year ago.