Under Armour (UAA) Q4 Earnings Meet, Sales Miss, Stock Down
Zacks Investment Research | Feb 10, 2020 10:01PM ET
Shares of Under Armour, Inc. (NYSE:UAA) are down roughly 15% during pre-market trading session on Feb 11, following the company’s fourth-quarter 2019 results, wherein the top line missed the Zacks Consensus Estimate, while the bottom line met the same. The company’s cautionary statement that the coronavirus outbreak in China is likely to hurt first-quarter 2020 sales also hurt the stock. Moreover, this athletic apparel maker did not provide an encouraging view for 2020, and expects soft sales in North America. These were enough to hurt investor sentiment.
Nonetheless, we note that both the top and the bottom lines improved year over year. The Baltimore-based company reported adjusted earnings of 10 cents a share that came a penny ahead of the prior-year quarter’s tally. Higher net revenues, lower cost of goods sold and reduced interest expense favorably impacted the bottom-line performance of this Zacks Rank #3 (Hold) company.
Net revenues grew 3.7% (or 4.1% on a currency neutral basis) to nearly $1,441.2 million but fell short of the Zacks Consensus Estimate of $1,464.8 million, after surpassing the same in the preceding quarter.
Apparel revenues inched up 0.2% year over year to $970.3 million, while Footwear revenues increased 10.3% to $259.3 million. Revenues from Accessories category grew 1.6% to $109.9 million. Meanwhile, Licensing revenues soared 35.5% to $62.2 million, whereas the company’s Connected Fitness segment reported an increase of 15.6% to $35 million.
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