Under Armour's strong footwear sales help drive earnings beat

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Under Armour's strong footwear sales help drive earnings beat.

. But the pandemic effects — more consumers shopping online and looking for clothes and shoes to workout in — are giving Under Armour a welcomed boost.Under Armour offered Wall Street a more upbeat outlook for 2020: It now expects full-year revenue to be down by a high-teen percentage rate. Previously, it had been calling for a drop of 20% to 25% in the second half of the year. Its new outlook, though still a decline, is better than the 25.7% drop that analysts had predicted.

Also Friday, Under Armour said it agreed to sell its MyFitnessPal workout platform to private-equity firm Francisco Partners, in a deal valued at up to $345 million. It acquired the business for $475 million in 2015. Apparel sales dropped 6% to $927 million, while footwear revenue surged 19% to $299 million, and accessories revenue jumped 23% to $145 million. The company said the boost in footwear is due in part to the launch of its first-ever, women's-specific basketball sneaker during the quarter. It also cited strength in the running category.

Over the next few years, Under Armour said, it expects to remove its brand from 2,000 to 3,000 wholesale stores in North America. Frisk said some of these are "larger customers," while he did not give specific retailers' names.

 

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