Under Armour Inc. (NYSE: UAA) reported its fourth quarter and full year financial results for fiscal year 2017 and topped analysts’ estimates. Share surged by 17 percent Tuesday morning after open.
For the fourth quarter, Under Armour reported revenue of $1.37 billion, up 5 percent year over year, and beating analysts’ estimates of $1.31 billion. The company had reported an adjusted EPS of $0.00, falling in line with analysts’ estimates.
Revenue in North America fell by 4 percent, but strong international revenue continued growing 47 percent year over year, which accounted for 23 percent of total revenue in the quarter. Apparel revenue increased by 2 percent to $952 million. Footwear revenue increased 9 percent and accessories revenue increased by 6 percent.
Under Armour reported a net loss of $88 million or an EPS loss of $0.20. Excluding the one time charge related to the Tax Act, adjusted net loss was $1 million.
“The dynamic landscape of 2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company," said Under Armour Chairman and CEO Kevin Plank.
“Our fourth quarter and full year results demonstrate that the tough decisions we're making are generating the stability necessary to create a more consistent and predictable path to deliver long-term value to our shareholders." added Plank.
For the full year, Under Armour reported revenue of $5.0 billion, increasing 3 percent year over year. North America revenue fell 5 percent as global revenue increased 46 percent year. The company reported an adjusted EPS of $0.19.
For its 2018 outlook, Under Armour forecasts net revenue to be up at a low single-digit percentage based off its decline in North America, but continued strong international growth, which is expected to grow 25 percent.
Plank said previously that the company is focusing on growing its international business segment due its rapid growth. The company appointed two new Senior Managers to spearhead international operations.
Under Armour also announced previously a 2018 restructuring plan to further optimize its operations. Under the plan, approximately $110 to $130 million of pre-tax restructuring charges are expected to be incurred.
Based off the restructuring efforts, Under Armour expects to save nearly $75 million annually in 2019 and beyond.
Since the beginning of 2018, Under Armour shares have risen 14.17 percent, but year over year, shares are down 22.73 percent. Under Armour finished 2017 as one of the worst performers in the S&P 500.