Maybe Under Armour Isn't In as Bad Shape as We Thought
Back in February, we reported that Under Armour's shares plummeted more than 25 percent for its post-holiday quarter. However, it looks like the company might be getting back on its feet after the company reported shares went up more than 10 percent, according to CNBC.
Even though the company posted its first-ever loss Thursday, it was not as bad as analysts expected it to be. CNBC reported that The Street predicted Under Armour would earn $1.11 billion, but in reality, the company earned $1.12 billion—an increase of 7 percent.
The company posted a 1 percent revenue loss in the North American region, but attributed that to the business lost as a result of 2017 retail bankruptcies, like Sports Authority.
In terms of what contributed to the company's sales surge, Under Armour reported that the men's training, running, youth and global football business segments saw the biggest jumps. Additionally, apparel revenue grew 7 percent in training, golf and team sports. Footwear also grew 2 percent.
With so much competition in the athletic apparel market, we've had our fears about Under Armour, as compared to Nike and Adidas, especially since a recent study showed teenagers were gravitating toward other athleisure brands. But it looks like Under Amour might be making a comeback and holding its own, at least for now.
Hannah Abrams is the senior content editor for Promo Marketing. In her free time, she enjoys coming up with excuses to avoid exercise, visiting her hometown in Los Angeles and rallying for Leonardo DiCaprio to win his
first second Academy Award.