Under Armour Inc., the Baltimore-based sporting goods retailer, exceeded expectations for its fiscal first quarter with a small profit instead of an anticipated loss. The company also announced that it would not be making any changes to the guidance provided back in May.
Impressive Financial Performance
During the quarter ending on June 30, Under Armour reported a net income of $8.549 million, or 2 cents per share, representing growth compared to the $7.682 million, or 2 cents per share, achieved in the same period last year. However, revenue declined slightly from $1.349 billion to $1.317 billion year-over-year.
Positive Outlook Amidst Challenging Retail Environment
Despite a challenging consumer retail environment in North America, Under Armour's international and direct-to-consumer businesses experienced solid growth in the quarter. CEO Stephanie Linnartz expressed satisfaction with these results and highlighted that the company's fiscal outlook for 2024 remains unchanged.
Maintaining Fiscal Guidance
Under Armour still expects its revenue for fiscal year 2024 to remain flat or slightly increase, while earnings per share (EPS) are projected to range from 47 cents to 51 cents.
Market Performance
Before the market opened, Under Armour's stock was slightly lower, and year-to-date it has declined by 21%. In contrast, the S&P 500 has gained 17.7%.
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