Factors To Know Ahead Of Under Armour's (UAA) Q2 Earnings
Zacks Investment Research | Jul 22, 2019 09:53PM ET
Under Armour, Inc. (NYSE:UAA) is scheduled to report second-quarter 2019 financial numbers on Jul 30, before the opening bell. We note that the bottom line of this Baltimore, MD-based company has surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Investors are counting on another beat by this athletic apparel maker in the to-be-reported quarter. If all goes well, this will be the seventh and fourth straight quarter of top and bottom-line beat, respectively.
The Zacks Consensus Estimate for the quarter under review is pegged at a loss of 6 cents. The company had reported a loss of 8 cents in the year-ago quarter. We note that the Zacks Consensus Estimate has remained unchanged in the past 30 days. The consensus estimate for revenues stands at $1,199 million, suggesting growth of approximately 2% from the year-ago quarter.
Here's What Management Guided
Management had earlier forecast second-quarter 2019 revenue to increase in the range of 1-2% driven by growth in international and direct-to-consumer businesses, partly offset by a marginal decline in North America business.
Sales decline in North America has been a major concern over the past few quarters. Net revenues from North America fell 2.8% during the first quarter of 2019 owing to sluggish demand in direct-to-consumer business and reduced sales to off-price channel.
For the second quarter, gross margin is projected to expand about 80-100 basis points due to improved product cost and regional and channel mix benefits. SG&A expenses are expected to be up about 4-5%, driven by additional planned marketing and increased facility, distribution and store expenses.
Under Armour had previously projected an operating loss of approximately $25 million. Moreover, the company had anticipated loss per share of roughly 6 cents, which shows an improvement from a loss of 8 cents reported in the year-ago period.
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