• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Under Armour shares surge 25% as company raises profit forecast on cost-saving strategies

by November 7, 2024
written by November 7, 2024

Under Armour’s shares soared 25% on Thursday after the sportswear giant raised its annual profit forecast, citing lower input costs and effective cost-saving measures, such as reducing discounts at its stores and website.

The strong performance came after several quarters of disappointing results, prompting company founder Kevin Plank to return as CEO.

Plank’s plan to reset the business includes reducing headcount and scaling back inventory on select products.

Under Armour and Nike are working to regain market share

The company’s efforts to revamp its business align with a broader trend seen in the athleisure market, where both Under Armour and Nike are working to regain market share from emerging brands like Roger Federer-backed On and Deckers Outdoor’s Hoka.

Under Plank’s leadership, Under Armour is focusing on selling apparel and footwear at full prices to correct previous missteps involving deep discounts.

In the second quarter, full-price sales accounted for around 50% of all e-commerce revenue, a notable increase from just 30% a year ago.

This shift, along with reduced discounting, led to a 200 basis-point improvement in the company’s gross margin, which reached 49.8%.

“Success in the athleisure market requires more than just the right pricing strategy.

Creating desirable products that consumers are willing to pay full price for is essential,” said Danni Hewson, Head of Financial Analysis at AJ Bell.

Under Armour now expects an adjusted annual per-share profit of between 24 and 27 cents, up from its previous forecast of 19 to 21 cents.

The company reported earnings of 30 cents per share in the quarter, exceeding analyst expectations of 20 cents.

Despite a 10.7% drop in second-quarter net sales to $1.4 billion, Under Armour exceeded analyst predictions, which had forecasted an 11.6% decline.

According to LSEG data as reported by Reuters, analysts had expected sales to fall to $1.39 billion.

BMO Capital Markets analyst Simeon Siegel noted, “We’ve long believed that Under Armour’s focus should be on improving its health rather than pursuing growth at all costs.”

As the company continues to implement its recovery plan, investors will be watching closely to see if Under Armour can regain its competitive edge in an increasingly crowded market.

The post Under Armour shares surge 25% as company raises profit forecast on cost-saving strategies appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Israel takes hard line against terrorists, allowing deportation of family members
next post
Why ON Semiconductor is a strong buy despite recent market challenges

related articles

Asian markets open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Iran’s supreme leader says nuclear talks with Trump admin would not be ‘wise’

    February 7, 2025
  • Classic car sales stall in Monterey auctions as new generation takes charge

    August 27, 2024
  • What recession? Walmart says consumers are still spending

    August 15, 2024
  • Elon Musk agrees with Ron Paul’s call to ‘ELIMINATE foreign aid’

    December 9, 2024
  • Inflation and $2,000 camps are creating a summer crisis for working parents

    July 25, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,602)
  • Investing (634)
  • Stock (867)

Latest Posts

  • Homeland Security puts staff involved in ‘disinformation’ board on administrative leave, review coming

    February 12, 2025
  • Democrat congresswoman draws boos over ‘shameful’ sexism remark in committee hearing with Treasury Secretary

    June 12, 2025
  • Graham: Israel should threaten to ‘blow up’ Iran’s oil refineries if hostages don’t come home

    August 25, 2024

Recent Posts

  • ‘Squad’ members ‘decide to lie and twist facts’ about Israel’s history, says prominent Arab activist

    July 15, 2025
  • Dem senator ripped for invoking Hegseth’s young daughter in ‘despicable’ confirmation hearing exchange

    January 14, 2025
  • Lawmaker who lost son to suicide warns Senate that ‘big tech is the big tobacco of this generation’

    February 20, 2025

Editor’s Pick

  • Trump ‘articulated a playbook,’ experts say of his policy-oriented inaugural address

    January 21, 2025
  • Soaring egg prices are threatening a classic holiday tradition: Easter dye kits

    March 1, 2025
  • Carrie Underwood to perform ‘America the Beautiful’ at Trump inauguration

    January 13, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock