Posting better-than-expected first-quarter results, Under Armour today may have offered a glimmer of hope to worried investors.
Still, shares — which had rallied earlier in the day — were down nearly 7 percent at market open, to $16.57.
The Baltimore-based brand’s Q1 sales advanced 6 percent year over year to $1.2 billion, besting forecasts of sales of $1.1 billion.
Growth remained stronger internationally, where sales climbed 27 percent, while North America continued to lag — remaining somewhat flat but falling 1 percent on a currency-neutral basis during the period. (International sales now represent 24 percent of UA’s business.)
The firm posted a net loss of $30 million, or 7 cents per diluted share, which was wider than last year’s net loss of $2.3 million, or 1 cents per diluted share. But on an adjusted basis, net income was $1 million, or 0 cents per diluted share, handily topping a tepid consensus bet for diluted losses per share of 5 cents.
“Our first-quarter results demonstrate measured progress against our focus on operational excellence and becoming a better company,” chairman and CEO Kevin Plank said in a statement. “As we continue to build our global brand by delivering innovative performance products to our athletes, amplifying our story, further strengthening our go-to-market process and leveraging our systems to create even deeper consumer connections, we remain confident in our ability to deliver on our full-year targets.”
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Under Armour reiterated its full-year outlook and continues to expect revenues to be up at a low-single-digit percentage rate, reflecting a mid-single-digit decline in North America and international growth of greater than 25 percent. Adjusted diluted earnings per share are predicted in the range of 14 cents to 19 cents.
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