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Bloomberg
Under Armour Inc’s sales beat expectations in the fourth quarter as the athletic-apparel maker benefited from e-commerce demand and made progress on its restructuring program, sending the shares higher.
Revenue in the period ended on December 31 fell 3% to
$1.4 billion, topping the $1.26 billion average of analyst estimates compiled by Bloomberg.
E-commerce sales jumped 25%.
Under Armour is looking to reverse a slump after the company struggled to take advantage of a shift toward athleticwear that has lifted some of its competitors. CEO Patrik Frisk has implemented a turnaround plan with an emphasis on cost cuts, higher cash flow and improved profitability. In the year ahead, he said the company is also focused on elevating its direct-to-consumer business, which analysts have said is not as strong as its competitor Nike.
The company launched a new North American e-commerce platform in July, which Frisk attributed to helping the brand accelerate its digital sales. Shoppers have flocked to digital channels during the pandemic, helping apparel makers offset some of the decline in physical-store sales.
“If you went back three, four years at Under Armour, we did not have all the tools you need to understand consumer journey and how to best connect with the consumer at moments when you have the opportunity,†Frisk said.