Good Thing: Turnaround For Profit, Andrew'S Four Quarter Performance Exceeded Expectations, Inventory Improvement 12%

After the expected fourth quarter performance announcement, investors welcomed Under Armour Inc. (NYSE:UA) (NYSE:UAA) Andemar's inventory improvement and cost management, pushing up the US sports Brand Company share price up 6.88% to $22.21.

In the fourth quarter, Andrew turned into a deficit, earning $4 million 218 thousand net profit or earnings per share of $0.01, a loss of $87 million 920 thousand in the four quarter of 2017.

After adjustment, the EPS for the fourth quarter was US $0.09, far exceeding the $0.04 expected by the market.

During the reporting period, revenue grew by 1.5% to 1 billion 390 million dollars, and the fixed exchange rate increased by 3%, exceeding the market forecast of $1 billion 380 million.

As of the end of December, Andrew stock amounted to $1 billion 19 million 500 thousand, which was 12% lower than that at the end of 2017, benefiting from reduced sales promotion and product cost improvement. The group's fourth quarter gross margin recorded a 160 basis point improvement to 45%, and adjusted gross margin 45.1% improved by another 160 basis points.

Sales of the group's largest North American market continued to decline 5.8% to 964 million 800 thousand US dollars in the fourth quarter, but was offset by an increase of 35.2% and 31.7% in the Asia Pacific and EMEA markets.

The largest category of clothing sales increased by 2%, which also offset the weak performance of shoe business.

Wholesale income decreased by 1% to 737 million dollars in the quarter, while retail income was flat at 577 million US dollars, accounting for 41%.

Chief executive Kevin Plank said in a statement that the 2018 performance showed that the result of the pformation of the company was moving towards a higher operational direction.

In the year of 2018, Andrew's revenue increased by 4.1% to 5 billion 193 million 200 thousand US dollars. The growth of 4% of the direct channel was offset by a 3% decline in wholesale business. The 23% increase in international business offset the 2% decline in the North American market.

The annual net loss was narrowed from $48 million 260 thousand to $46 million 302 thousand, with a profit of $-0.10 per share, -0.11 in 2017, and $0.27 per share after adjustment.

Gross profit margin recorded 45.1% year-on-year, unchanged from last year, and 30 basis points to 45.5% after adjustment.

Andrew maintains the revenue growth of 3-4% in the current fiscal year, and the North American market is expected to be positive; gross margin is expected to improve by 60-80 basis points by reducing sales promotion and increasing direct sales ratio; operating profit is expected to be 2.10-2.30 billion; EPS expects 0.31-0.33 dollars.

Kevin Plank said that the company will continue to focus on sports category products, overturn the previous pition concerns leisure market categories.

Tuesday's rally expanded the Under Armour Inc. (NYSE:UAA) Andemar to 24.71% so far this year, with a continuous super expected quarterly performance, which jumped 32.99% in December.

Author: Flower broken