time to read 3 minutes

Under Armour’s only way is throughINTL

Under Armour’s only way is through

Under Armour (UA) surprised analysts after reporting its fourth-quarter earnings. The company reported revenues of $1.4b versus analyst’s expectations of $1.27b, as well as an unexpected profit for the holiday quarter, driven by a boost in digital sales and a reduction in expenses.

The company’s investors took well to the earnings report as its shares finished Thursday’s trading session in the green by 2.4%. 

The athleisure apparel company attributes this to a “resurgence in terms of fitness… and general wellness”, according to CEO Patrik Frisk.

why it matters
Along with competitors Nike (NKE) and Lululemon (LULU), Under Armour has benefited from COVID-19 lockdowns as consumers searched for comfortable apparel they can wear around the house for Zoom calls and at-home workouts. Given that lockdowns have been reimposed around the world, demand can, therefore, still be assured.