Tag Archives: Under Armour Inc

Business

Horizon Therapeutics, Coupa Software, Weber and more

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Check out the companies making headlines in midday trading.

Horizon Therapeutics – Shares of the drugmaker jumped 15% after the company announced it has agreed to be acquired by Amgen in a deal valued at approximately $26.4 billion, or $116.50 per share, in cash. The deal will give Amgen a chance to build its portfolio of rare-disease treatments. Amgen shares fell more than 1%.

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Weber – Shares of the grill manufacturer jumped 23% after the company announced a deal to be taken private by BDT Capital Partners. BDT will purchase Weber for $8.05 per share, according to the announcement.

Coupa Software – The maker of business spending management software jumped 26% after the private-equity firm Thoma Bravo agreed to buy the company in an all-cash deal worth $8 billion, or $81 per share.

Under Armour – The athletics apparel stock jumped 10% following an upgrade to buy from hold by Stifel. The firm cited Under Armour’s “better margin certainty” and management of inventory among its reasons for the upgrade.

Boeing – Shares of the aircraft maker jumped 2.8% after the Economic Times reported over the weekend that Air India is close to signing an order to acquire up to 150 737 Max jets.

Rivian – The electric vehicle stock shed more than 4% on news that it’s pausing plans to make electric vans in Europe in conjunction with Mercedes-Benz. Rivian CEO RJ Scaringe said the company is pursuing “the best risk-adjusted returns” on its capital investments, which includes focusing on its consumer and existing businesses. News of the agreement with the automobile maker was first announced in September.

Monday – Shares of software publisher Monday jumped 6% after JPMorgan upgraded the stock to overweight from neutral and boosted its price target.

Cheesecake Factory, Brinker International – The two restaurant stocks fell following downgrades to sell from neutral by Goldman Sachs. The firm said inflation will continue hurting the companies into 2023. Cheesecake Factory shed 1.6%, while Brinker, the parent of Chili’s and Maggiano’s Little Italy, dropped 2.9%.

Box – The software-as-a-service company gained 6.5% after JPMorgan upgraded the stock to overweight from neutral, arguing it is outperforming other technology names and can continue doing so going forward.

Tesla – Shares of Tesla fell more than 4% after a YouGov survey showed that negative views of the electric vehicle maker have overtaken positive ones just slightly. Tesla’s brand has deteriorated after CEO Elon Musk took over Twitter.

— CNBC’s Tanaya Macheel, Yun Li, Alex Harring, Samantha Subin and Jesse Pound contributed reporting.

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Business

Horizon Therapeutics, Coupa Software, Rivian and more

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Take a look at some of the biggest movers in the premarket:

Horizon Therapeutics (HZNP) – The drugmaker’s shares surged 14.7% in the premarket after it agreed to be bought by Amgen (AMGN) for $116.50 per share in cash, with the deal valued at $27.8 billion. Amgen shares fell 2.6%.

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Coupa Software (COUP) – Private-equity firm Thoma Bravo agreed to buy Coupa, a specialist in business spending management software. The deal is worth $8 billion, or $81 per share in cash. Coupa shares soared 21.6% in premarket trading.

Rivian (RIVN) – The electric vehicle maker has paused talks with Mercedes-Benz on a planned joint venture to build electric vans in Europe. The move is part of Rivian’s effort to be more conservative with its cash outlays in the face of higher interest rates and economic concerns. Rivian fell 2.5% in premarket action.

Weber (WEBR) – The maker of grills and other outdoor cooking products agreed to be taken private by BDT Capital Partners for $2.32 billion in cash, or $8.05 per share. Weber shares closed Friday at $6.50.

Accenture (ACN) – Accenture fell 1.7% in the premarket after Piper Sandler downgraded the consulting firm’s stock to “underweight” from “neutral.” The firm expects Accenture to be negatively impacted by more cautious 2023 spending in the tech sector.

Under Armour (UAA) – Under Armour jumped 2.8% in premarket trading following a Stifel upgrade to “buy” from “hold.” Stifel praised the athletic apparel maker’s inventory management, which it said gives the company better profit margin certainty.

Best Buy (BBY) – The electronics retailer’s stock added 1.6% in the premarket after Goldman Sachs upgraded it to “neutral” from “sell.” It’s among retail stocks that Goldman feels has the ability to maintain prices as inflation moderates and to gain market share.

Gap (GPS), Tapestry (TPR), Levi Strauss (LEVI) – Goldman Sachs upgraded Gap and Tapestry to “buy” from “neutral” while downgraded Levi Strauss to “neutral” from “buy.” Goldman said its moves were based on which companies can thrive in an atmosphere that will see consumers become more discerning with their apparel spending. Gap added 2.7% in the premarket, with Tapestry up 2% and Levi Strauss losing 1.2%.

Brinker International (EAT) – The restaurant operator’s stock slid 3.7% after Goldman downgraded it to “sell” from “neutral.” Goldman said it was cautiously optimistic about the long-term results of the company’s effort to turn around its Chili’s chain, but thinks 2023 will be choppy in terms of sales and profit margins.

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Business

Spirit Airlines, Didi Global and more

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Take a look at some of the biggest movers in the premarket:

Spirit Airlines (SAVE) – Spirit jumped 6.1% in the premarket after JetBlue (JBLU) sweetened its bid for Spirit. JetBlue will increase its breakup fee for the deal to $350 million and pay part of that as a dividend if the deal is consummated, increasing the value to $31.50 per share. JetBlue shares were unchanged.

Didi Global (DIDI) – Didi shares skyrocketed in the premarket after The Wall Street Journal reported that China regulators have concluded a year-long probe and it is set to lift an order banning the company from adding new users.

Keurig Dr Pepper (KDP) – The beverage maker’s stock will be added to the S&P 500 index prior to the opening of trading on June 21, along with ON Semiconductor (ON) and real estate investment trust VICI Properties (VICI). Keurig rallied 7.9% in premarket action, with ON Semiconductor surging 7.2% and VICI jumping 8.4%.

Eli Lilly (LLY) – The drugmaker’s stock rose 1.2% in premarket trading, after announcing successful results in studies involving diabetes drugs Trulicity and Jardiance.

Under Armour (UAA) – Under Armour stock is among those being replaced in the S&P 500 on June 21. Under Armour will move to the S&P MidCap 400, along with laser maker IPG Photonics (IPGP). Under Armour lost 1.2% in the premarket.

Revlon (REV) – Revlon is in talks with lenders on pushing back debt payment deadlines as the cosmetics maker tries to avoid a bankruptcy filing, according to people familiar with the matter who spoke to The Wall Street Journal. The talks involve extending the maturity date on about $1.7 billion in debt that comes due as early as 2024. Revlon added 1.6% in premarket trading.

Starbucks (SBUX) – Starbucks is considering only external candidates to be its next CEO, according to interim Chief Executive Officer Howard Schultz. He told The Wall Street Journal that the company needs to add new talent to its executive ranks. Starbucks was up 1.8% in the premarket.

Apple (AAPL) – Apple shares are on watch as the company’s annual Worldwide Developers Conference begins. Apple stock has lost 16.9% so far this year amid concerns about a slowdown in demand. Apple gained 1.4% in premarket trading.

Solar companies – Shares of solar equipment providers rose in premarket trading, following a Reuters report saying the White House would declare a 24-month exemption from solar panel tariffs as well as other moves to spur U.S. solar panel production. SolarEdge Technologies (SEDG) added 4.3%, Sunrun (RUN) jumped 11.1%, First Solar (FSLR) gained 2.3%, JinkoSolar (JKS) rallied 5.9% and SunPower (SPWR) rallied 7.2%.

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Business

Under Armour CEO Patrik Frisk to step down, interim chief to take over

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Patrik Frisk, recently appointed Chief Executive Officer Of Under Armour, speaks at the 2020 Under Armour Human Performance Summit on January 14, 2020 in Baltimore, Maryland.

Olivier Douliery | AFP | Getty Images

Under Armour said its president and chief executive officer, Patrik Frisk, will be stepping down, effective June 1, as the sportswear retailer searches for a replacement.

In the interim, current Chief Operating Officer Colin Browne will serve as president and CEO, the company said Wednesday in a press release. Frisk is expected to remain with Under Armour as an advisor through Sept. 1.

Frisk didn’t give a reason for his widely unexpected departure. He didn’t immediately respond to CNBC’s request for comment.

The former CEO of the footwear holding company Aldo Group joined Under Armour in 2017, and he took over as CEO from the company’s founder, Kevin Plank, in January 2020.

During his tenure, Frisk helped to drive Under Armour through a massive turnaround, which also happened to take place amid the Covid-19 pandemic.

Frisk worked to limit the amount of discounting that Under Armour does with third-party retailers in an attempt to buoy profits. He also tried to make the brand appear more premium next to peers like Nike and Lululemon.

“I am extremely proud of what we’ve accomplished as a team,” Frisk said in a statement issued Wednesday. “Together, we have done a tremendous amount of work to strengthen this iconic brand while significantly solidifying its operations.”

Under Armour said it will conduct both internal and external searches for its new CEO.

The stock fell more than 3% in extended trading. Under Armour shares are down about 50% year to date.

Read the full press release from Under Armour here.

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Business

Under Armour, Zillow, Expedia and others

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Check out the companies making headlines before the bell:

Under Armour (UAA) – The athletic apparel maker reported an adjusted quarterly profit of 14 cents per share, doubling consensus estimates, with better-than-expected revenue. Under Armour saw strong demand for its athletic wear and was also helped by higher prices implemented to counter increased costs. However, Under Armour said its gross margins would fall by 200 basis points for the current quarter due to supply chain challenges, and the stock slid 2.6% in premarket action.

Newell Brands (NWL) – The household products maker’s stock added 1.2% in premarket trading after reporting better-than-expected profit and revenue. it also issued an upbeat profit forecast. The company behind brands like Mr. Coffee, Crock-Pot and Sunbeam earned an adjusted 42 cents per share for its latest quarter, 10 cents above estimates.

Zillow Group (ZG) – Zillow posted an adjusted quarterly loss of 42 cents per share, compared with a projected loss of $1.07. The real estate website operator also reported better-than-expected revenue. Those results came despite an $881 million loss on its now-shuttered home-flipping business. Zillow shares surged 13.2% in the premarket.

Expedia (EXPE) – Expedia earned an adjusted $1.06 per share for its latest quarter, beating the 69-cent consensus estimate, though the travel services company’s revenue was just shy of analyst forecasts. Expedia said the Covid-related impact on travel bookings was significant, but less severe and for a shorter duration than prior Covid waves. Expedia rallied 4.6% in premarket trading.

Aurora Cannabis (ACB) – Aurora Cannabis reported better-than-expected cannabis sales during its latest quarter, the first time it’s been able to exceed analyst estimates in more than a year. Aurora reported a quarterly loss of $59 million, substantially less than a year earlier. The stock slid 4.6% in premarket action.

Zendesk (ZEN) – Zendesk rejected a takeover bid of $127 to $132 per share from a group of private equity firms. The software development company said it would push ahead with its proposed acquisition of SurveyMonkey parent Momentive Global (MNTV), despite pressure from activist investor Jana Partners to abandon the deal. Zendesk rose 2.7% in the premarket, while Momentive Global jumped 7.9%.

GoDaddy (GDDY) – GoDaddy beat estimates by 11 cents with adjusted quarterly earnings of 52 cents per share and better-than-expected revenue. The cloud computing company also announced a $3 billion share repurchase program. GoDaddy leaped 5.8% in the premarket.

Yelp (YELP) – Yelp more than doubled the 14-cent consensus estimate in reporting a quarterly profit of 30 cents per share. The online review site operator also reported better-than-expected revenue amid strength in its advertising business. Yelp jumped 4.5% in premarket action.

Affirm Holdings (AFRM) – The financial technology company — best known for its buy-now-pay-later plans — tumbled 10.4% in the premarket after plummeting 21.4% in Thursday trading. Affirm stock first plunged after the company inadvertently released its quarterly report earlier than intended. The pressure continued amid projections of higher transaction volume but lower-than-expected revenue.

Cedar Fair (FUN) – The theme park operator’s stock gained 2.8% in premarket trading following a Bloomberg report that private equity firm Centerbridge Partners acquired a 5% stake. Cedar Fair is currently in the process of reviewing a $3.4 billion takeover bid from SeaWorld Entertainment (SEAS).

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Business

This is a treacherous market filled with extreme stock moves

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CNBC’s Jim Cramer on Friday offered viewers his game plan for the next five trading days on Wall Street.

The “Mad Money” host’s lookahead came after the S&P 500 and Nasdaq Composite posted their best weeks so far in 2022, finishing 1.5% and 2.4% higher, respectively.

“This week we saw the true colors of what is a treacherous market,” the “Mad Money” host said. If investors love a stock, there’s “no level it won’t be taken up to,” he said. “But if it’s hated? There are no depths it won’t sink to. Either way … it’s likely to be an extreme.”

All revenue and earnings per share estimates are from FactSet.

Monday: Tyson Foods, Two-Take Interactive and Simon Property Group

Tyson Foods

  • Q1 earnings release before the bell; conference call at 9 a.m. ET
  • Projected EPS: $1.93
  • Projected revenue: $12.17 billion

Cramer said the company’s quarter should provide insights into the country’s meat supply chain, which has experienced a host of challenges during the Covid pandemic.

Take-Two Interactive

  • Q3 earnings release after the close; conference call at 4:30 p.m. ET
  • Projected EPS: $1.12
  • Projected sales: $868 million

Take-Two’s quarter will provide a glimpse into how much of the pandemic-related surge in gaming has stuck around, Cramer said. “[CEO] Strauss Zelnick is the straightest of straight shooters. If demand is waning, he’s just going to say it.”

Simon Property Group

  • Q4 earnings release after the bell; conference call at 5 p.m.
  • Projected EPS: $2.89
  • Projected revenue: $1.25 billion

Tuesday: Centene, Pfizer, Chipotle, DuPont and Peloton

Centene

  • Q4 earnings before the open; conference call at 8:30 a.m. ET
  • Projected EPS: 98 cents
  • Projected revenue: $32.5 billion

“I think it’s a takeover target and I bet we’ll get a very good quarter,” Cramer said of the health insurer.

Pfizer

  • Q4 earnings before the bell; conference call at 10 a.m. ET
  • Projected EPS: 87 cents
  • Projected sales: $24.16 billion

Cramer also said he expects very good numbers from Pfizer.

DuPont

  • Q4 earnings before the open; conference call at 8 a.m. ET
  • Projected EPS: 99 cents
  • Projected revenue: $4.02 billion

“The great industrials have had a real up and down time in this market and I fear this could be DuPont’s down time, which is why we finally decided to ring the register for a terrific profit for the charitable trust,” Cramer said.

Chipotle

  • Q4 earnings after the close; conference call at 4:30 p.m. ET
  • Projected EPS: $5.25
  • Projected sales: $1.96 billion

Cramer said Chipotle’s quarter is the one he’s most interested in Tuesday. “I think it could do low double-digit same-store sales versus last year’s already excellent numbers and that should cause the stock to ignite,” he said. “Raw costs are always a problem in the business, though.”

Peloton

  • Q2 earnings after the close; conference call at 5 p.m. ET
  • Projected EPS: Loss of $1.22
  • Projected revenue: $1.14 billion

Cramer said he’s looking for a host of updates from Peloton’s management after the exercise equipment maker’s stock has been pummeled in recent months. One topic that is likely to come up is The Wall Street Journal’s report Friday that Amazon has approached Peloton about a potential deal, Cramer said.

Wednesday: CVS Health, PepsiCo, Disney and Mattel

CVS Health

  • Q4 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: $1.83
  • Projected sales: $75.66 billion

“I expect a very good quarter from CVS [because of] Covid testing, but what happens next?” Cramer said. “Have they monetized the vaccination seekers? That would take it to the next level.”

PepsiCo

  • Q4 earnings release before the open; conference call at 8:15 a.m. ET
  • Projected EPS: $1.52
  • Projected revenue: $24.24 billion

Cramer said he was surprised the beverage giant’s stock fell 1.6% Friday, suggesting he’d pick up some shares ahead of the quarterly print.

Disney

  • Q1 earnings release after the close; conference call at 4:30 p.m. ET
  • Projected EPS: 73 cents
  • Projected revenue: $20.27 billion

Cramer said he thinks the media and entertainment giant does not get enough credit for the value of its intellectual property. “This isn’t Netflix. It isn’t Facebook. It’s a one-of-a-kind growth vehicle. It is not stagnant. It is not dead, and that’s why I’d like to build a bigger position ahead of the quarter for my trust,” he said.

Mattel

  • Q4 earnings release after the close; conference call at 5 p.m. ET
  • Projected EPS: 33 cents
  • Projected revenue: $1.66 billion

“I think there could be a whole new slate of toys and entertainment from CEO Ynon Kreiz, who’s been a turnaround whizz,” Cramer said.

Thursday: Coca-Cola, Twitter, Cloudflare and Zendesk

Coca-Cola

  • Q4 earnings release before the bell; conference call at 8:30 a.m. ET
  • Projected EPS: 41 cents
  • Projected revenue: $8.98 billion

While Cramer said he expects a good quarter from Coca-Cola, he specifically mentioned looking for updates on the beverage maker’s partnership with Molson Coors on a Topo Chico hard seltzer. “I think this is the next big spiked [beverage],” Cramer said.

Twitter

  • Q4 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: 33 cents
  • Projected revenue: $1.58 billion

It’s unclear whether Twitter’s digital ad business faces challenges like Facebook parent Meta or is growing just fine like Amazon or Alphabet, Cramer said. “I think we’ll find out that it remains the same old plodding Twitter when it reports—a company that has nothing we truly want to pay up for,” Cramer said.

Cloudflare

  • Q4 earnings after the close; conference call at 5 p.m. ET
  • Projected EPS: 0 cents
  • Projected revenue: $185 million

Cramer said he’s anticipating “great numbers” from the cybersecurity firm, but “I don’t expect anyone to care” because the stock is out of favor on Wall Street.

Zendesk

  • Q4 earnings after the bell; conference call at 5 p.m. ET
  • Projected EPS: 18 cents
  • Projected sales: $371 million

Cramer said he’s keeping an eye out for an update on Zendesk’s pursuit of Momentive Global, a deal which activist investor Jana Partners has urged Zendesk to drop.

Friday: Under Armour, Cleveland-Cliffs and Goodyear Tire & Rubber

Under Armour

  • Q4 earnings release before the open; conference call at 8:30 a.m. ET
  • Projected EPS: 6 cents
  • Projected sales: $1.47 billion

“There’s lots of good buzz about this one, so much that I think it’s actually a terrific speculation going into the quarter. We keep hearing about a potential turnaround, maybe this time it’s going to happen,” Cramer said.

Cleveland-Cliffs

  • Q4 earnings before the bell; conference call at 10 a.m. ET
  • Projected EPS: $2.15
  • Projected revenue: $5.73 billion

“I’m betting actually that Cleveland-Cliffs will do a decent number,” Cramer said, complimenting the company’s management and improved balance sheet.

Goodyear Tire & Rubber

  • Q4 earnings before the open; conference call at 9 a.m. ET
  • Projected EPS: 32 cents
  • Projected sales: $5.01 billion

“I think that Goodyear will positively dazzle,” Cramer said.

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Business

Levi Strauss to buy yoga apparel brand Beyond Yoga

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An employee holds a shopping bag while ringing up a customer at the Levi Strauss & Co. flagship store in San Francisco, March 18, 2019.

David Paul Morris | Bloomberg | Getty Images

Levi Strauss & Co. on Thursday agreed to buy the yoga apparel brand Beyond Yoga, launching the jeans maker into the competitive activewear space.

Levi didn’t disclose the size of the all-cash deal, which is expected to close in the fourth quarter.

Levi expects the acquisition will add more than $100 million to its net revenue next fiscal year, and immediately bolster its earnings.

“We’ve been looking at acquisitions for quite some time, and the activewear space has obviously been very, very attractive,” Levi CEO Chip Bergh told CNBC in a phone interview. “We see enormous growth potential here. It puts us as a company smack into the high-growth, high-margin activewear segment.”

Levi shares were up less than 1% in extended trading on the news.

After the transaction is complete, Levi said Beyond Yoga will operate as a standalone division within its business. Co-founder Michelle Wahler will continue to serve as Beyond Yoga CEO, reporting to Bergh.

Levi CFO Harmit Singh commented that Beyond Yoga has more than doubled its revenue while growing profitability over the past three years. The brand, headquartered in Los Angeles, was founded by two women in 2005. Its marketing often echoes messages of body positivity and size inclusivity to younger girls.

Bergh said Levi plans to expand the Beyond Yoga brand outside of the United States and open more bricks-and-mortar stores. The deal should also help Levi grow its women’s business, which accounts for roughly one-third of sales today. The goal is to grow women’s to 50%, Bergh said.

Levi’s acquisition is yet another vote of confidence that an already hot retail sector is growing even hotter, as companies from Kohl’s to Target vie for a sliver of the activewear market.

On Monday, Wolverine Worldwide — the company behind Merrell, Saucony, Sperry, Stride Rite and other shoe names — scooped up Lululemon rival brand Sweaty Betty for $410 million.

Big-box chains Dick’s Sporting Goods, Kohl’s and Target have also launched their own activewear offshoots, competing with the likes of Nike, Under Armour and Gap’s Athleta banner. There are a number of other smaller start-ups in the space, ranging from Outdoor Voices to Nobull to Bandier.

Even as Americans return to the office and to socializing with colleagues, many are still opting for comfortable and casual clothing, including stretchy bottoms and sneakers.

This shifting fashion trend has been coined “workleisure,” a play on athleisure garb that can be worn from a workout class to the coffee shop. It’s fueling further growth in the activewear category.

“As some people start going back to the office, you’re not seeing suits anymore, you’re seeing people go into the office in more casual clothing, even athleisure-type products,” Bergh said. “And it’s a truly global phenomenon.”

Levi shares are up 37% year to date. Its market cap is $11.1 billion.

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Business

Robinhood, Clorox, American Airlines and more

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People wait in line for t-shirts at a pop-up kiosk for the online brokerage Robinhood along Wall Street after the company went public with an IPO earlier in the day on July 29, 2021 in New York City.

Spencer Platt | Getty Images News | Getty Images

Check out the companies making headlines in midday trading.

Robinhood — Shares of the newly public stock-trading app rose over 16% in midday trading on Tuesday. Robinhood rose above its IPO price of $38 per share, to trade above $44 per share. ARK Invest’s Cathie Wood has been buying shares of HOOD since its IPO. The Menlo Park, California-based company is a “top traded stock” on Fidelity, which is generally a good proxy for individual investor interest on a given day.

Take-Two Interactive Software  — The video game company’s share price dropped about 9% after the firm issued a weak outlook and announcing delays in new releases for some of its games. Still, Take-Two Interactive’s quarterly earnings and revenue both came in above estimates, according to Refinitiv.

American Airlines – Shares of the airline company dipped more than 2% as a jump in Covid cases weighed on areas of the market that could be hit hardest by new lockdown measures. The company has also faced disruptions from inclement weather and staffing constraints. United Airlines and Delta Air Lines also traded lower on Tuesday.

Alibaba — The Chinese e-commerce giant saw its shares fall about 2% after reporting a revenue miss. Alibaba notched revenue of $31.8 billion in the three months to the end of June, missing estimates of around $32.4 billion, according to the FactSet consensus.

Simon Property Group — Shares of the U.S. mall owner rose over 2% after the company’s strong quarterly earnings report. Simon Property posted revenue of $1.16 billion, compared with the $1.14 billion that analysts expected, according to Refinitiv. The company said sales at its shopping malls and outlet centers bounced back to pre-pandemic levels in its latest fiscal quarter.

Royal Caribbean – Royal Caribbean shares came under pressure and slid more than 2% amid concerns about a rise in Covid cases. Last week the company said that six passengers on board one of its cruises tested positive for Covid. Norwegian Cruise and Carnival Corporation dipped 2.6% and 1.5%, respectively.

Under Armour — Shares of Under Armour gained about more than 6% after the athletic apparel retailer’s second-quarter earnings and sales topped analysts’ estimates. The company reported adjusted earnings of 24 cents per share on revenue of $1.35 billion. Analysts expected earnings of 6 cents per share on revenue of $1.21 billion, according to Refinitiv. Under Armour also hiked its revenue outlook.

Clorox – Clorox sunk more than 10% after the household products maker missed top and bottom line estimates for its latest quarter. Clorox reported adjusted earnings of 95 cents per share on revenue of $1.8 billion. Analysts were looking for earnings $1.35 per share on revenue of $1.92 billion, according to Refinitiv. Clorox’s sales dropped off from a year ago during the height of the pandemic when consumers stocked up on its cleaning and disinfecting products.

Eli Lilly — Shares of the pharmaceutical company rose over 4% despite missing analyst earnings estimates in its quarterly report. Eli Lilly reported earnings of $1.87 per share, below the $1.89 per shares expected on The Street. Revenue topped estimates.

— with reporting from CNBC’s Yun Li, Hannah Miao and Pippa Stevens.

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Business

Under Armour (UAA) Q2 2021 earnings beat

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People walks past a Under Armour clothing store in Siam Center, Bangkok.

Guillaume Payen | SOPA Images | LightRocket | Getty Images

Under Armour reported Tuesday fiscal second-quarter profit and sales that topped analysts’ estimates as its turnaround efforts took hold and shoppers bought more of its merchandise at full price.

The athletic apparel maker also hiked its outlook for the full year, anticipating that its momentum will build. It now expects fiscal 2021 revenue to rise at a low-20s percentage, compared with a previous forecast of a high-teen percentage increase.

Under Armour shares were climbing around 6% in extended trading.

Here’s what Under Armour reported for the three-month period ended June 30, compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 24 cents adjusted vs. 6 cents expected
  • Revenue: $1.35 billion vs. $1.21 billion expected

In the quarter ended June 30, Under Armour swung to a profit of $59.2 million, or 13 cents per share, from a loss of $182.9 million, or 40 cents per share, a year earlier. Excluding one-time charges, the company earned 24 cents per share. Analysts surveyed by Refinitiv had been looking for 6 cents.

Revenue climbed 91% to $1.35 billion from $707.6 million a year earlier, beating estimates for $1.21 billion.

Sales in North America, its largest geography, rose 101% year over year to $905 million, while international revenue doubled to $446 million.

Wholesale revenue grew 157% to $768 million, and direct-to-consumer revenue increased 52% to $561 million, the company said. E-commerce sales represented 39% of Under Armour’s direct-to-consumer business during the quarter.

Under Armour’s apparel segment was up 105%, as consumers around the world bought more clothes to sweat in the gym. Footwear sales were up 85% from the prior year. Accessories revenue was up 99%.

“I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth,” CEO Patrik Frisk said in a statement.

Under Armour raised its forecast for 2021 adjusted earnings to a range of 50 cents to 52 cents per share, compared with a prior range of 28 cents to 30 cents per share.

Analysts surveyed by Refinitiv had been looking for full-year adjusted earnings per share of 35 cents on sales of $5.35 billion, which would represent year-over-year growth of 19.5%.

Find the full earnings press release from Under Armour here.

This story is developing. Check back for updates.

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Business

Dick’s Sporting Goods is launching its own men’s athleisure line

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VRST is debuting Tuesday on both Dick’s Sporting Goods’ website and a standalone VRST.com, and will be rolled out to more than 400 Dick’s Sporting Goods locations across the country in the coming weeks.

Source: Dick’s Sporting Goods

Dick’s Sporting Goods is entering a hotly contested market for men’s athletic apparel with the launch of its own brand called VRST.

VRST debuts Tuesday on Dick’s website and a standalone VRST.com, and will roll out to more than 400 Dick’s stores in the coming weeks, the company said. Items in the line, which include everything from joggers and shorts to tees, quarter-zips, and hooded sweatshirts, retail anywhere from $30 to $120, putting it on the higher end of the market when it comes to price point.

Following the success that Dick’s has had with its Calia athleisure line for women, the company said it saw a blank space in its stores to have a more upscale and lifestyle-driven line for men. The line won’t compete directly with the sweat-wicking performance gear sold by Under Armour and Nike. Instead, it’s more similar to Lululemon.

Dick’s amped up private-label investments come, though, as big-name brands like Nike and Under Armour have pledged to sell more merchandise directly to consumers. Adidas announced earlier this month its direct-to-consumer vertical should make up 50% of net sales by 2025. While Dick’s still carries these brands, the pivot has put more pressure on wholesale retailers to have exclusive lines, like Calia and VRST, to drive traffic and sales.

In 2020, Dick’s rang up $1.3 billion in sales from its in-house brands. Total revenue was $9.58 billion. The company said its own brands outperformed national labels in the golf, fitness, outdoor equipment and team sports categories. Calia was the second-best women’s apparel brand falling only behind Nike last year, it said.

Filling the ‘white space’

VRST will be the second brand that Dick’s has launched with its own website. Calia was the first.

“When you see VRST, it will be a very different product assortment from when we have with our core vendor partners right now, and it is a white space,” Dick’s Chief Executive Lauren Hobart said earlier this month during an earnings call. “It covers a broad range of activities.”

“VRST will put us in a much stronger position to compete with similar offerings from premium apparel brands and specialty athletic apparel stores,” Hobart explained.

Items in the VRST line, which include everything from joggers, shorts, tees, quarter-zips, and hooded sweatshirts, retail anywhere from $30 to $120, putting it on the higher end of the market when it comes to price point.

Source: Dick’s Sporting Goods

Companies like Lululemon, Nike, Adidas and Under Armour have seen more momentum over the past 12 months than clothing brands focused on work wear and dressier items. And in turn, more traditional apparel brands and department store chains quickly shifted their merchandise and marketing to center around casual and comfort, creating more clamor in an already noisy category.

Activewear grabs market share

Prior to the pandemic, for example, Lululemon said it planned to double its men’s business in five years. Direct-to-consumer men’s athleisure brands like Rhone, Ten Thousand and Vuori have also been doubling down on marketing spending online to reach new customers. Even department store retailers Nordstrom and Kohl’s have put a renewed focus on activewear, in a bid to boost sales. Kohl’s efforts include an in-house line called FLX, which debuted earlier this month.

At the same time, there’s been enormous growth in the space.

Last year, men’s activewear gained market share to account for 45% of the total men’s apparel market, compared with 39% in 2019, according to data compiled by the consumer research firm NPD Group. Categories that helped drive dollars in the space included sweatpants, which were up 16% year over year, and sweatshirts, which rose 3%, it said.

But VRST isn’t a hurry-up solution to take advantage of a pandemic pop. It has been in the works for a few years, the company said.

“And obviously we’re maximizing the current momentum,” Nina Barjesteh, senior vice president of product development, said in an interview. “But more than anything, we continue to look at the long run, and make sure that we’re building products that you want to come back for more.”

Dick’s shares are up more than 190% over the past 12 months, as of market close on Monday. The company has a market cap of $7 billion.

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