Under Armour: returns to profit; cost cutting pays off

(CercleFinance.com) - US sportswear maker Under Armor said on Tuesday that it returned to profit in the past quarter, primarily due to product cost improvements on the back of supply chain initiatives, with the group maintaining its growth forecasts for 2019.


Under Armour's net income for the fourth quarter was 4 million dollars, or one cent per share, from a loss of 87.9 million, or 20 cents a share, in the year-earlier quarter.

Its gross margin increased 160 basis points to 45%, while revenue rose by 2% to 1.4 billion dollars.

Under Armour, which has for a long time been considered as a fast-growing rival of Nike, said it still expects 2019 revenue to increase by about 3% to 4% this year, reflecting relatively flat results for North America and low double-digit percentage growth on its international markets.

Under Armour's shares are currently up 1.8% at 21.2 dollars, adding to a 17.5% gain year-to-date.

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