Under Armour earnings: what to look for from UAA

What happened

Under Armour is scheduled to report earnings this Friday before the market opens. Last quarter, revenue was $1.10 billion, down 3.2% from a year earlier and below analysts’ expectations; earnings per share beat estimates, but full-year earnings guidance fell short.

Confirmed

Global impact / market context

The upcoming results will show whether Under Armour’s revenue decline is deepening: analysts expect a 7.7% year-on-year drop this quarter, compared with a 4.7% decline in the same quarter last year. Weaker sales could limit the company’s revenue available to cover costs.

Analyst inference

Analysts generally reconfirmed their estimates in the past 30 days, indicating expectations have not shifted much. Peer results are mixed: VF Corp grew revenue 1.2% and beat estimates, while Levi’s revenue rose 4.3% in line with expectations.

Confirmed

What to watch

1. Check reported revenue against the expected 7.7% year-on-year decline; a smaller drop would indicate sales are holding up better than analysts currently anticipate. Analyst inference
2. Look for any update to full-year earnings guidance, which is the company’s forecast of profits, after last quarter’s guidance fell short of analyst expectations. Analyst inference
3. Compare Under Armour’s sales trends with the reported peer figures: VF Corp revenue grew 1.2%, while Levi’s rose 4.3% in line with estimates. Confirmed

Evidence

• stockstory.org