Under Armour (NYSE: UAA) shares rose 16% Tuesday following the report of positive third-quarter earnings. The company’s brand image has also been improved while under the direction of Chief Executive Officer Patrik Frisk.
The athletic apparel company reported earnings of USD0.31 per share, compared to the expected USD0.15 a share. Revenue amounted to USD1.55 Billion, higher than analysts anticipated USD1.48 Billion.
“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 Under Armour President and CEO Patrik Frisk. “With industry-leading innovations, increased marketing efforts to deepen our connection with Focused Performers, and consistent operational discipline – we’re building greater brand affinity and are on track to deliver record revenue and earnings results in 2021.”
Amid the rise in demand for sneakers and athletic wear, Under Armour now foresees sales to rise 25% in comparison to 2020 metrics, surpassing its previous outlook. Under Armour’s, Class A shares rose 16%
Additionally, according to the company, its overseas plants are on track and had maintained the company’s products in supply for the upcoming holiday season.
“Nearly all factories that Under Armour does business with, including those in Vietnam, are open,” finance chief David Bergman said on Tuesday, calming investor alarm regarding ongoing supply chain issues.
In a research note, J.P. Morgan analyst Matthew Boss wrote that there has been a “fundamental shift in consumer behavior,” as people remain focused on their health.