Benzinga | Aug 3, 2021 07:53AM EDT

Under Armour Shares Jump In Premarket On Strong Q2 Earnings, Raised FY21 Guidance

* Under Armour Inc (NYSE:UAA) reported second-quarter FY21 sales growth of 91% year-on-year, to $1.35 billion, beating the analyst consensus of $1.21 billion.

* Wholesale revenue increased 157% Y/Y to $768 million, and direct-to-consumer revenue increased 52% to $561 million.

* North America rose 101% to $905 million, while international revenue increased 100% to $446 million.

* Apparel revenue increased 105% to $874 million, Footwear revenue rose 85% to $343 million, and Accessories revenue increased 99% to $112 million.

* Gross profit rose 91.5% Y/Y to $668.8 million, and gross margin increased 20 basis points Y/Y to 49.5% of net sales.

* The operating margin was 9.0%, and operating income for the quarter was $121 million.

* Inventory was down 26% Y/Y to $881 million.

* The company held $1.3 billion in cash and equivalents as of

* Adjusted EPS of $0.24 beat the analyst consensus of $0.05.

* "With the critical mass of our transformation behind us and the continued improvements across product, marketing, and our financial results, I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth," said CEO Patrik Frisk.

* Outlook: Under Armour raised FY21 adjusted EPS guidance to $0.50 - $0.52 (prior view $0.28 - $0.30), versus the consensus of $0.34.

* It also raised EPS outlook to $0.14 - $0.16 from the previous expectation of a loss $(0.02) - $(0.04).

* The company sees FY21 sales growth in the low 20s percentage rate versus the prior view of high-teens percentage growth.

* Price action: UAA shares are trading higher by 4.97% at $22.16 in premarket on the last check Tuesday.