The 35 per cent jump in revenues has encouraged Under Armour to raise its expectations for annual profit and sales. The brand posted 32 per cent increase in quarterly revenues from North America owning to the rollout of COVID-19 vaccines and new rounds of government stimulus. Revenues from international segment surged 58 per cent.
In the upcoming year, the brand aims to spend more on marketing, stores and website, to take advantage of recovering markets, including North America, China and Germany. It expects marketing and incentive compensations to make up about three quarters of the increase in costs this year. Its full-year adjusted earnings per share are expected to increase between 28 cents and 30 cents while full-year revenues are expected to rise by high-teens percentage.
The company forecasts second-quarter revenue to rise about 70 per cent after store closures hammered sales a year ago. Its first-quarter net revenue rose to $1.26 billion, beating estimates of $1.13 billion, according to IBES data from Refinitiv.