Under Armour Set for Another Positive Quarter, Analysts Say

Under Armour Inc. should continue to exceed expectations when it reports Q2 earnings on Tuesday, analysts say. The results are expected to be driven by improved product offerings, international sales and an elevated direct-to-consumer experience. In a note to investors, William Trading analyst Sam Poser predicted Under Armour will report Q2 earnings per share of 6 cents and a revenue increase of 70% to $1.23 billion. He added that international sales will also accelerate. To support his forecast, Poser cited “improved apparel and footwear product offerings, much improved allocation and segmentation strategies, that gelled in 2020, adequate inventory levels to supply at-once orders to retailers and support UAA’s DTC business due to better-than-expected demand driven by first stimulus, and second, better product offerings.” Analysts say Under Armour will also see success in the running category, thanks to the brand’s innovative Hovr technology for footwear. This area will likely see more positive results as more consumers focus on healthier lifestyles and exercise, analysts at Cowen Equity Research wrote in a note. “Under Armour has achieved a much more consistent message with the Focused Performer, and now has improved tools to react to trends and read the consumer,” read the Cowen report. In May, Under Armour beat expectations

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