Under Armour Changed Its Share Price For 17 Years, The First Quarter Results Exceeded Expectations.

Sales in the international market increased by 27% over the same period last year, with the strongest region coming from Asia Pacific, including China.

The increase reached 35%.

Overseas markets are helping Under Armour stop.

In May 1st, the US sports brand released its first quarter fiscal year 2018.

As of March 31st, benefiting from the good performance of international business and clothing category, Under Armour's global sales increased 5.9% to 1 billion 190 million US dollars over the same period last year, exceeding analysts' expectations of US $1 billion 120 million.

After a three quarter loss in 2017, the US brand still suffered a loss of $30 million 200 thousand and a loss of 7 cents per share in the latest quarter, and analysts expected a 5 cent loss.

In the same period last year, Under Armour suffered a loss of $2 million 300 thousand, or a loss of 2 cents per share.

The company said the main reason was that the cost of restructuring in the first quarter was as high as 37 million 500 thousand US dollars.

If these disposable expenses are ignored, the earnings per share will be less than 1 cents, which is basically the same as the same period last year.

Strong overseas income is the most prominent part of this earnings report.

During the period, sales in the international market increased by 27% over the same period last year, accounting for 24% of the company's total sales.

Among them, the strongest region comes from Asia Pacific, including China.

With sales growth reaching 35%, direct consumer business is an important driving force.

The international market has made up for the continued weakness in North America. In the past three months, sales in the North American market decreased by 0.4% compared to the same period last year, and sales have declined for three consecutive quarters.

From the perspective of category, the sales of clothing category increased by 7% in the first quarter, benefiting from the promotion of male training products.

In addition, sales of footwear increased by 1%, and accessories increased by 3%.

Under Armour said these gains offset the disadvantages of team sports such as football.

Including online e-commerce and flagship flagship store business, sales of self operated retail businesses increased by 17% in the first quarter, accounting for 30% of the total sales.

But wholesale sales were weak, with only 1% growth in the period.

In addition, as the Under Armour cleaned up excess inventory in the first quarter, the sales cost increased by 3% compared to the same period last year, reaching 515 million US dollars, occupying 43% of the total revenue, and the profit pressure increased.

"The first quarter results show that we have made some progress in improving our operations and becoming a better company," said Under Armour chairman and chief executive Kevin Planck (Kevin Plank) at a financial press conference.

He said the brand is expected to complete its annual target set for this year, "to provide athletes with innovative high-performance products to further strengthen.

Marketing makes use of our product system to build deeper connections with consumers. "

In February this year, the US brand announced the 2018 fiscal year expected that annual sales will grow at a low single digit.

Among them, sales in North America are expected to drop by a median figure, and the international market is expected to grow by more than 25%.

However, due to the problem of overstock, capital markets are worried about the second quarter's performance.

"Inventory levels seem to be out of control," analysts Sam Poser said in a research report. "For us, it's like a time bomb."

Over the past three months, the brand's stock has risen by 27% to $1 billion 100 million.

To this end, after the company released its financial report, Under Armour rose 1.35% first, but then fell more than 6%.

In response, the company's chief financial officer, David Bergman, told investors after the release of the earnings report that Under Armour is trying to repair the product inventory problems brought about in 2017 and will be emptied before the end of 2018.

At the same time, Under Armour expects to lose 9 to 10 cents per share in the second quarter after deducting one-time restructuring costs, which is even more serious than analysts forecast 6 cents loss.

It is worth noting that in mid April, Wedbush, a US brokerage firm, released a research report showing the latest share of the global sporting goods market.

The third Under Armour was surpassed by PUMA. Last year, sales of German sporting goods reached 4 billion 30 million euros (4 billion 990 million US dollars), while Under Armour was 4 billion 980 million dollars, dropping to fourth.

In the fifth place, New Balance is also catching up with the former.

Since 2018, the share price of Under Armour has risen by 23%.

But in the past 12 months, the company's share price has fallen by 17%.