Stephanie Linnartz started out with at least a small win during her first quarter at Under Armour Inc.
Adjusted earnings per share came in at 18 cents during the fourth quarter, 3 cents ahead of the 15 cents analysts projected on average, according to FactSet.
But Linnartz, the former Marriott International executive who joined the company as president and chief executive officer in February, also turned in lackluster guidance for this year as she starts to shape the brand anew.
“Fiscal 2024 will be a year of building for the brand,” Linnartz said in a statement. “I am prioritizing significantly amplifying global brand heat; delivering elevated design and products, with a focus on Sportstyle, footwear, and women, and positioning us to drive better sales growth in the United States.
“We will leverage our strong portfolio of franchises, including Heat Gear, Cold Gear, and compression apparel, to drive innovation across new products and markets,” Linnartz said. “We must deliver better for athletes and our customers and meaningfully increase returns for shareholders in the years ahead. My job is to make that vision a reality.”
Watch on FN
Under Armour’s net income for the quarter received an $87 million boost from a tax valuation allowance and tallied $170.5 million, or 38 cents a share. This compared with losses of $59.6 million, or 13 cents, a year earlier.
Revenues for the three months ended March 31 rose 7.5 percent to $1.4 billion from $1.3 billion. Within that, wholesale revenues increased 10 percent to $909 million and direct to consumer sales rose 3 percent to $454 million.
For the full year, the company’s net profits increased 74 percent to $386.7 million as revenues increased 3.1 percent to $5.9 billion. Adjusted earnings per share came in at 58 cents, ahead of the 52 to 56 cent range the company projected.
This year, Under Armour is expecting its revenues to be flat to up slightly with diluted earnings per share of 47 cents to 51 cents.
Investors wanted a little more and welcomed Linnartz’s first quarterly report by sending shares down 4.2 percent to $7.49 in premarket trading on Wall Street.
BMO analyst Simeon Siegel said the company’s stock was under valued but that “the burden of proof lies with management execution.”
