Kevin Planck, founder and CEO of Under Armor Inc., spoke at the Consumer Electronics Show (CES) in Las Vegas, Nevada, USA on Friday, January 6, 2017.
Patrick T. Fallon | Bloomberg | Getty Images
Under Armor reported mixed fiscal second quarter on Tuesday morning, sending its shares up about 13% in pre-market trading.
The athletic apparel retailer has been updating its full year forecast and now expects North American sales to decline slightly. Previously, he expected the revenue from the home turbidity to be "relatively equal" in 201
Chief Executive Officer Kevin Planck in a statement under Armor remains "sharply focused on … long-term strategies."
Here's what Armor reported about its fiscal second quarter ended June 30, compared to what analysts were expecting, based on data downloaded from Refinitiv:
- Adjusted loss per share: 4 cents vs. 5 cents, expected
- Revenue: $ 1.192 billion vs. Estimated $ 1.199 billion
Under Armor reported narrower a net loss of $ 17.3 million, or 4 cents a share, in comparison with a loss of $ 95.5 million, or 21 cents a share, a year ago. The loss in the recent period includes a stroke of a penny per share from its minority stake in a Japanese licensee. The results were better than the loss of 5 cents per share analysts expected, according to Refinitiv.
Net income for the second quarter was $ 1.192 billion, up from $ 1.175 billion a year ago, but missing estimates for $ 1.199 billion.  According to Armor, apparel sales declined 1.1%, while shoes increased 4.7%.
In North America, sales fell 3.2% in the quarter, while Under Armor's international business grew by 12% and now represents 28% of total revenue.
Stocks fell 26% to $ 966 million as Under Armor works with an inventory that weighs its business for much of 2018.
The company is still calling for profits of between 33 cents and 34 cents a share for the fiscal year. Analysts call for 35 cents a share, according to Refinitiv.
Under Armour's greatest challenge remains to return to growth in North America, a market where more and more buyers are increasingly buying athletic clothing and sneakers as casual wear, but under Armor's equipment is better known for this that is worn during high endurance activities.
The company also said it wanted to win more women, but that's because Nike is also trying to attract more female clients with sports bras and yoga pants. windows like Outdoor Voices, Bandier, and the Gap Athleta brand flood the space.
Towards the end of Monday's market, Under Armor shares gained more than 50% this year.