Still, shares — which had rallied earlier in the day — were down nearly 7 percent at market open, to $16.57.
The Baltimore-based brand’s Q1 sales advanced 6 percent year over year to $1.2 billion, besting forecasts of sales of $1.1 billion.
Growth remained stronger internationally, where sales climbed 27 percent, while North America continued to lag — remaining somewhat flat but falling 1 percent on a currency-neutral basis during the period. (International sales now represent 24 percent of UA’s business.)
The firm posted a net loss of $30 million, or 7 cents per diluted share, which was wider than last year’s net loss of $2.3 million, or 1 cents per diluted share. But on an adjusted basis, net income was $1 million, or 0 cents per diluted share, handily topping a tepid consensus bet for diluted losses per share of 5 cents.
“Our first-quarter results demonstrate measured progress against our focus on operational excellence and becoming a better company,” chairman and CEO Kevin Plank said in a statement. “As we continue to build our global brand by delivering innovative performance products to our athletes, amplifying our story, further strengthening our go-to-market process and leveraging our systems to create even deeper consumer connections, we remain confident in our ability to deliver on our full-year targets.”
Under Armour reiterated its full-year outlook and continues to expect revenues to be up at a low-single-digit percentage rate, reflecting a mid-single-digit decline in North America and international growth of greater than 25 percent. Adjusted diluted earnings per share are predicted in the range of 14 cents to 19 cents.
Why Under Armour’s NBA Partnerships Are Vital to the Brand’s Success in Basketball