Under Armour has today forecast full-year revenue above analysts' estimates, boosted by a surge in online demand from shoppers looking for running shoes and other fitness gear for outdoor workouts.
The company also today announced the sale of its MyFitnessPal exercise tracking platform for $345m to private equity firm Francisco Partners.
While the Covid-19 pandemic has caused a fall in attendance at gyms, it has given people more time to work out at home or adopt solo outdoor exercises like running or biking.
That drove demand for Under Armour's HOVR training shoes as well as its running shorts and t-shirts.
Under Armour said its direct-to-consumer business jumped 17% in the third quarter as online shopping surged with people making fewer trips to stores.
Overall, quarterly revenue stayed roughly flat at $1.43 billion for the third quarter ended September 30, but beat analysts' estimates of $1.16 billion.
Net income fell to $38.9m, or nine cents per share, from $102.3m, or 23 cents per share, a year earlier, as the company incurred over $70m in restructuring and asset impairment charges.
It forecast full-year revenue to fall in the high-teen percentage, compared with analysts' average estimate of a 25.7% drop, according to IBES data from Refinitiv.
The company said it expects full-year adjusted loss of 47 cents per share to 49 cents per share, smaller than the 72 cents per share loss estimated by analysts.
