Under Armour’s Q3 Results Lead To Massive Stock Surge
Under Armour Inc. had itself a day. As of market close on October 30, the Baltimore-based shoe and apparel company saw the share price of its stock shoot up roughly 27% from its opening price to a number just above $23 per share.
The company beat its earnings estimates (it was projected to have $0.12 per share and delivered $0.25 per share) according to its quarterly earnings report. It also delivered $1.44 billion in revenue, above the $1.42 billion expected.
However, the main reason why Under Armour’s stock price surged on October 30 is likely due to the promise of its international business. Sales outside of the United States increased by 15% ($351 million). Those international sales now make up almost one-fourth of Under Armour’s total sales.
Under Armour showed success in Latin America, Europe, the Middle East and Africa, and Asia-Pacific. While performance in the U.S. actually decreased (revenue went down by 2%), that was overshadowed by the major gains that Under Armour experienced abroad.
“Our third quarter results demonstrate that our multi-year transformation is on track,” said Under Armour CEO Kevin Plank. “As we work through this chapter, we are staying sharply focused on our brand by connecting even more deeply with our consumers while delivering industry-leading, innovative products and premium experiences.”
Under Armour stock rose more than 15% before the market opened on October 30. It continued to rise throughout the day, with a final push upwards right before the close of business. Despite Under Armour’s one-day surge, it still closed below its fifty-two week high of $24.31 (June 8, 2018).