What Led The Under Armour (UA) Stock To Increase 15%?

At last check in current trading, shares of Under Armour Inc. (UA) were up 15.24% at $21.93. Last session, UA stock closed at $19.03. UA stock fluctuated between $18.91 and $19.29 in price. UA stock exchanged 7.88 million shares, more than its 50-day daily volume of 2.5 million and more than its year-to-date volume of 3.47 million.

UA stock has gained 55.60% over the past year, and in the last week it has gained 4.10%. A total of -3.50% has been lost on the UA stock in the last six months, and a total of -0.99% in the last three months. So far this year, UA’s stock has returned 27.89%. Furthermore, the stock is trading at an earnings-to-price ratio of 73.76. UA stock is surging following the company’s quarterly results.

How did UA perform in the reported quarter?

Under Armour is a prominent creator, marketer, and distributor of branded athletic performance gear, footwear, and accessories with headquarters in Baltimore, Maryland. The University of Arizona’s unique products and experiences are designed to improve human performance.

Unaudited financial data for the third quarter ending September 30, 2021 were released today by Under Armour.

Strong demand for the UA brand and its ability to act rapidly to satisfy the requirements of its consumers and customers drove its third-quarter earnings. UA is generating higher brand loyalty and is on course to generate record revenue and profits results in 2021 because to industry-leading innovations, enhanced marketing initiatives to strengthen its relationship with Focused Performers, and persistent operational discipline.

Financial highlights:

  • UA’s sales increased by 8% to $1.5 billion over the previous year.
  • UA’s gross margin grew 310 basis points to 51.0 percent in the reported quarter, owing to price and channel mix gains offset by the absence of MyFitnessPal and supply chain challenges.
  • UA’s sales, general, and administrative costs rose 8% to $599 million.
  • UA’s operating income in the reported quarter was $172 million, but on an adjusted basis it was $189 million.
  • The net income for UA was $113 million, while the adjusted net income was $145 million.

UA’s 2020 restructuring plan:

Under Armour (UA) announced a reorganization plan of $550 million to $600 million in April 2020 to realign its cost base and boost profitability and cash flow. UA currently expects to incur $525 million to $575 million in costs as a result of this strategy, with $500 million in pre-tax charges already recorded, including $17 million in the third quarter of 2021 and $26 million year-to-date. $140 million of the $500 million in charges is cash-related, while $360 million is non-cash-related. Any remaining charges linked to this strategy are expected to be recognized by the first calendar quarter of 2022, according to UA.