Under Armour stock surges after profit and revenue beat expectations, as a jump in shoe revenue offset a decline in apparel

Shares of Under Armour Inc.
UAA,
-0.08%

UA,
+0.09%
surged 3.9% in premarket trading Wednesday, after the athletic apparel and gear seller reported a big beat in fiscal third quarter profit and raised its full-year outlook. Net income for the quarter to Dec. 31 rose to $121.6 million, or 27 cents a share, from $109.7 million, or 23 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 16 cents were well above the FactSet consensus of 9 cents. Revenue grew 3.4% to $1.58 billion, above the FactSet consensus of $1.55 billion. A 2% decline in North America revenue was offset by a 14% increase in international revenue, while a 25% jump in footwear revenue offset a 2% declines in apparel and accessories. Gross margin contracted by 6.5 percentage points, due primarily to higher promotions, sales mix impacts and the negative impact of currency fluctuations. For fiscal 2023, the company raised its adjusted EPS guidance range to 52 cents to 56 cents from 44 cents to 48 cents, while keeping its revenue growth guidance at a low single-digit percentage range. The stock has soared 58.3% over the past three months while the S&P 500
SPX,
+1.29%
has gained 8.8%.