Athletic-wear brand Under Armour shares shot up over 25% after it reported quarterly earnings and revenue that surpassed expectations of analysts.
The American company, which was seen as a potential rival to industry leader Nike just till few years ago, reported third-quarter net income of US $ 75.3 million, surpassing the US $ 54.2 million for the same quarter last year.
It’s earnings grew 14% to 25 cents a share, bucking analyst expectations for a 46% decline. The brand’s year long restructuring now received some validation with the soaring stock.
Wholesale revenue increased 4% to US $ 914 million. Revenue from apparel, led by growth in training, golf and team sports, saw a similar 4% increase to US $ 978 million.
While its North America revenue fell 2% to US $ 1.1 billion amid rising competition with Nike Inc., Under Armour reported a bigger boost overseas where sales jumped 15% to US $ 351 million and now represent 24% of total sales.
The brand has been struggling since the end of 2016 amid competition, closures of key retailers and changing consumer demands in sports apparel.
CEO Kevin Plank praised the company’s ability to increase sales while undergoing a “seismic shift”. He said, “We are not crazy about the sort of overall position. I think we are just doing fine. If we can do this sort of restoration of filling and really making strong this team and this operating structure, I think we’re really going to be something to deal with in about another 12 months or so.”