Under Amour Inc reported strong third-quarter results for 2021, raising its outlook for the rest of the year.
The sports clothing group saw its stock jump more than 16% by Tuesday’s close after reporting strong third-quarter results for 2021.
Revenue was up 8% to US$1.5bn versus the previous year, with an operating income of US$172mln.
Full-year group revenues are now guided to have grown by 25%, according to Under Armour’s newly upgraded outlook, up from the prior target which was pitched in "the low twenties".
At the same time, the apparel firm also raised expectations for operating profit, now anticipated at US$435mln, up nearly 50% on the previous estimate range.
Under Armour said it performed particularly well in the international market where revenue was up 18% year-on-year at US$510mln.
“Our third-quarter results were driven by strong demand for the Under Armour brand and our ability to execute quickly to meet the needs of our consumers and customers,” said chief executive Patrik Frisk.
Despite the good trading performance and Wall Street reaction, some analysts were less impressed. Notably, CFRA analyst Zachary Warring cautioned that most of Under Armour’s outperformance came only through higher pricing and warned it could be a temporary boost that may fall away under pressure should consumer spending weaken.
In New York, Under Armour shares were up 16% at US$25.80 and were indicated another 1% higher ahead of Wednesday’s open.