Under Armour beats as North American sales climb for the first time in a year
- Under Armour edged out Wall Street estimates on both the top and bottom lines.
- It saw North American sales increase for the first time in year.
- The apparel maker says it will take an approximately $80 million in additional restructuring charges.
- Shares are up 5.5% in early trading.
- Watch Under Armour trade in real time here.
Under Armour's second-quarter results edged out Wall Street estimates on both the top and bottom lines.
The athletic-apparel maker posted an adjusted loss of $0.08 a share as revenue climbed 7% to $1.2 billion. Wall Street analysts surveyed by Bloomberg were expecting a loss of $0.085 per share on $1.15 billion of revenue.
The company saw its North American revenue climb 2% to $843 million, making for its first growth in a year. Apparel sales jumped 10%, driven by strength in training and running, while its footwear business saw a 15% sales increase.
"Through the first half of 2018, we are making progress toward our transformation of running a more operationally excellent company while amplifying the power of the Under Armour brand," Under Armour Chairman and CEO Kevin Plank said in the earnings release.
"The ongoing improvements in our structure, systems and go-to-market process across our global business better position us to drive a more consistent, predictable path to deliver for our consumers, customers and shareholders over the long-term."
The company expects gross margins to decrease approximately 110 basis points to 44.8% due to "inventory management issues." It has been dealing with an inventory problem for quite some time now.
Under Armour says it has identified an additional $80 million of restructuring charges, and now expects to incur approximately $190 million to $210 million of pre-tax restructuring, up from its previous estimate of approximately $110 million to $130 million.
It now sees 2018 net revenue increasing 3%-4%, and still expects full-year adjusted earnings of $0.14-$0.19 a share.
Under Armour shares are up 48.48% this year though Wednesday.
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