5 Things We Learnt From Under Armour’s 2019 Q1 Financial Report
Things have been looking up for Under Armour recently, and that appears to be continuing into 2019.
The brand recently let loose with its Q1 report for 2019 but, as you might expect, it's as dry as a grandfather's sense of humour. Thankfully for you, we've done the hard work ourselves and pulled out five key points that are worth highlighting. While four of them may have you wanting to add some UA stock to your portfolio ASAP, the fifth shows that there's reason to proceed with caution...
5. Earnings and Sales Topped Analysts’ Expectations
Ahead of 2019, analysts expected Under Armour to break even with sales of about $1.18 billion in the first quarter of 2019. However, the brand ended up earning five cents per share for Q1 (which ended March 31) on sales of $1.21 billion. The result is net income of $22.48 million for the quarter, which is a whole lot better than numbers from the same time last year: in Q1 of 2018, UA lost $30.24 million.
4. Profit Outlook Has Been Raised for Fiscal 2019
As a direct result of the brand's Q1 performance, Under Armour is now expecting 2019 to be even more profitable than it had originally projected. All in all, earnings are expected to be up to 33 or 34 cents per share for Fiscal 2019, with revenues up somewhere between three and four per cent.
3. Signature Kicks and Runners Reign Supreme
So just how exactly did Under Armour beat expectations in Q1? Look no further than some of its flagship footwear. Dwayne 'The Rock' Johnson's signature Project Rock – and corresponding line of apparel and accessories – are amongst UA's best-sellers, as are Steph Curry's Curry 6 and Under Armour's various Hovr product. Under Armour is also starting to make more waves amongst runners, which helped drive footwear sales to an eight per cent increase overall.
2. Growth Abroad
Under Armour's improved finances owe a massive thanks to a higher profile overseas. According to UA, revenues from international markets now make up 27 per cent of total sales, and grew 12 per cent in Q1 2019 alone, to $328 million.
1. A Continued Uphill Battle at Home, Though
Despite all of that growth abroad, Under Armour is still facing an uphill battle – especially on its home soil. Sales in North America actually decreased three per cent in Q1 to $843 million as the brand continues to face stiff competition from its competitors. Some analysts believe Under Armour has struggled in North America because it has failed to jump on the athleisure bandwagon while its competitors have gone all-in.