Why Is Under Armour Stock Trading Higher Thursday?
Portfolio Pulse from Anusuya Lahiri
Under Armour Inc (NYSE:UAA) stock rose after reporting quarterly earnings, with a slight miss in sales but a beat in Adjusted EPS. Sales declined by 6% Y/Y to $1.49 billion, with a notable decrease in wholesale revenue and a slight increase in direct-to-consumer revenue. The company saw a decline in apparel and footwear revenue, but accessories revenue remained flat. Despite a decrease in North America revenue, international revenue grew. The company improved its gross margin due to supply chain benefits but saw a decrease in operating income. Under Armour updated its FY24 outlook, expecting a slight decrease in revenue but an increase in EPS and gross margin. Shares traded 5.19% higher at $8.10 in premarket trading.
February 08, 2024 | 1:48 pm
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Under Armour reported a mixed Q3 FY24 earnings with a slight miss in sales but a beat in Adjusted EPS, leading to a 5.19% increase in stock price in premarket trading.
The positive reaction in Under Armour's stock price can be attributed to the company beating the Adjusted EPS estimates, which often holds more weight for investors than a slight miss in sales. The updated FY24 outlook, especially the improved EPS and gross margin forecasts, likely contributed to investor optimism, driving the stock price up in the short term.
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