Under Armour Beats Forecasts, Raises Outlook + More

FN keeps track of all of our earnings coverage for retailers and footwear companies here.

August 3: Under Armour (UA)

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Earnings: The company reversed its year-ago loss, posting a profit of $59.2 million, or 13 cents per share. Excluding one-time charges, Under Armour earned 24 cents per share.

Sales: Revenue was up 91{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $1.4 billion. Footwear revenue increased 85{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $343 million. Revenue in North America, which has been in focus during the company’s turnaround efforts, rose 101{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $905 million.

CEO Comments: “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 Under Armour President and CEO Patrik Frisk.

Outlook: Under Armour previously forecast a loss of 2 cents to 4 cents a share for fiscal 2021. The company now projects earnings of 14 cents to 16 cents per share on a sales increase in the low 20{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} range. (Adjusted earnings are expected to hit 50 to 52 cents.)

August 2: Columbia Sportswear Company (COLM)

Earnings: The company reported a diluted earnings per share of $0.61, compared to a net loss per share of $(0.77) in Q2 of 2020.

Sales: Net sales increased 79{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $566.4 million.

CEO Comments: “Our record financial performance clearly reflects the powerful fundamental recovery that is underway in our business. Second quarter results exceeded our expectations, driven by better than planned performance in our U.S. wholesale and DTC brick & mortar businesses,” said chairman, president and CEO Tim Boyle. “We eclipsed pre-pandemic first half 2019 financial results, marking an important milestone in our recovery. It is clear that our brand portfolio is resonating with consumers and we are well positioned to benefit from current consumer and outdoor trends.”

Outlook: The company raised its full year outlook and now expects net sales between $3.13 and $3.16 billion and diluted earnings per share between $4.30 and $4.55.

Michael Kors Greenwich Small Saffiano Leather Crossbody Bag - Credit: Michael Kors

Michael Kors Greenwich Small Saffiano Leather Crossbody Bag – Credit: Michael Kors

Michael Kors

July 30: Capri Holdings (CPRI), parent company to the Michael Kors, Versace and Jimmy Choo brands.

Earnings: The company reported $219 million in profit, or $1.41 per diluted share, compared to a loss of of $180 million, or $(1.21) per share, in 2020.

Sales: Revenue increased 178{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $1.25 billion, up from $451 million a year ago.

CEO Comments: “We were pleased by our first quarter performance which reflected the strength of Capri Holdings’ three global fashion luxury houses, Versace, Jimmy Choo and Michael Kors,” said John D. Idol, chairman and CEO. “All of our luxury houses significantly exceeded our revenue and earnings expectations for the quarter, as they continued to deepen consumer desire and engagement. As a result of this encouraging start to the year, we are raising our Fiscal 2022 revenue and earnings outlook.”

Outlook: The company raised its full year guidance and now expects a total revenue of about $5.3 billion.

Quick notes: The company’s strong results show early signs of a comeback for the luxury fashion firm.

Supreme reseller with several bags from the store. - Credit: MEGA

Supreme reseller with several bags from the store. – Credit: MEGA

MEGA

July 30: VF Corp. (VFC), which includes the Vans, The North Face, Supreme, and Timberland brands, among others.

Earnings: Earnings per share from continuing operations was $0.39. Adjusted earnings per share from continuing operations increased 148{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $0.27.

Sales: Revenue grew 104{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $2.2 billion. Excluding acquisitions, revenue increased 90{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0}.

CEO Comments: “Our teams delivered an outstanding first quarter, powering VF back to pre-pandemic revenue levels while driving an earnings recovery ahead of our expectations,” said Steve Rendle, VF’s Chairman, President and CEO. “We continue to see broad-based momentum across the portfolio, supporting an increase to our fiscal 2022 outlook for each of our largest brands.”

Outlook: VF Corp. raised its full year outlook for fiscal year 2022 and now expects revenue to grow at least 30{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} and hit at least $12 billion, including $600 million from the Supreme brand.

Hoka One One Rincon 3. - Credit: Courtesy of Hoka One One

Hoka One One Rincon 3. – Credit: Courtesy of Hoka One One

Courtesy of Hoka One One

July 29: Deckers (DECK), which includes the Ugg, Hoka One One, Teva, and Sanuk brands, among others. Deckers reported earnings for Q1 of fiscal year 2022.

Earnings: Earnings per share increased to $1.71.

Sales: Revenue increased 78.2{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $504.7 million.

CEO Comments: “Our portfolio of brands delivered a strong start to fiscal 2022, which propelled Deckers to its most profitable first quarter ever,” said Dave Powers, President and CEO. “The growing influence of HOKA, increasing year-round appeal of UGG, and continuing strength of Teva are driving progress across strategic priorities and delivering a more balanced business.”

Outlook: Deckers raised its full year outlook for fiscal year 2022 and expects earnings per share in between $14.45 and $15.10.

Quick notes: Hoka sales grew 95.5{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $213.1 million in Q1, marking the first quarter that the brand surpassed UGG in revenue.

Puma x Haribo Classic Suede in red. - Credit: Courtesy of Puma

Puma x Haribo Classic Suede in red. – Credit: Courtesy of Puma

Courtesy of Puma

July 29: Puma SE (PUMSY:OTC US)

Earnings: Net earnings increased to € 49 million.

Sales: Revenues were up 95.8{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to € 1.59 billion.

CEO Comments: “I am very proud of how our organization has maneuvered through all of these issues and how we managed to achieve these results in the second quarter,” said Puma CEO Bjørn Gulden. “Demand for our products in performance, comfort and lifestyle has been strong. The cooperation with our sourcing and retail partners has become even stronger during the COVID-19 pandemic and this continued to help us in the second quarter.”

Outlook: The company raised its outlook for 2021 and expects 2021 currency-adjusted sales to increase by at least 20{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0}, up from a previous projection in the mid-teens.

Quick notes: Puma’s growth was led by North America, which posted a sales growth of 181.8{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to € 675.6.

Saucony Endorphin Trail. - Credit: Courtesy of Saucony

Saucony Endorphin Trail. – Credit: Courtesy of Saucony

Courtesy of Saucony

July 29: Wolverine Worldwide Inc. (WWW), which includes the Saucony, Sperry, are Merrell brands, among others.

Earnings: Net earnings for Q2 totaled $44.7 million, or 53 cents a diluted share, marking an increase from 2020 losses of $1.6 million, or 2 cents.

Sales: Reported revenue was up 81{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} at $631.9 million versus 2020 and up 77.7{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} on a constant currency basis.

CEO Comments: “With record revenue in the second quarter and demand for our brands continuing to accelerate, we now expect to deliver meaningful growth this year over both 2020 and 2019,” said Blake W. Krueger, Wolverine Worldwide’s Chairman and CEO. “Merrell and Saucony, our two largest brands, both achieved all-time record quarterly revenue – more than doubling their combined revenue year-over-year and driving combined revenue growth of more than 40{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} versus 2019.

Outlook: The company raised its outlook for 2021 and now expects revenue between $2,340 million to $2,400 million, and growth of 31{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to 34{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} compared to 2020. This is up $150 million from the company’s original outlook in February.

Quick notes: The company appears to have reversed the tide of its pandemic slowdown, partly thanks to high demand for Merrell and Saucony products. Brendan Hoffman, who is set to take over the role of CEO later this year, will help the company continue to shift its focus to broader and more longterm revenue goals, Williams Trading analyst Sam Poser said in a note.

Credit: Courtesy of Zappos

Credit: Courtesy of Zappos

Courtesy of Zappos

July 28: Steve Madden (SHOO)

Earnings: Net income was $36.9 million, or $0.45 per diluted share.

Sales: Revenue increased 178.6{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $397.9 million compared to $142.8 million in 2020.

CEO Comments: “We are excited about the strong and accelerated recovery we are seeing in our business. Our second quarter results significantly exceeded our expectations, with earnings slightly ahead of pre-COVID-19 second quarter 2019,” said CEO and Chairman Edward Rosenfeld.

Outlook: Steve Madden expects revenue to increase 43{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to 47{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} over fiscal year 2020, with diluted EPS between $1.90 and $2.00 and adjusted diluted EPS between $2.00 and $2.10.

Quick notes: Sales have still not reached where they were pre-Covid and are are still down about $52 million from the same quarter two years ago.

Credit: Courtesy of Crocs

Credit: Courtesy of Crocs

Courtesy of Crocs

July 22: Crocs (CROX)

Earnings: Quarterly net earnings rose to $319 million, or $2.23 per share, on an adjusted basis, compared with $56.6 million, or $1.01 a year ago. Revenues were up 93{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0}, or $640.8 million, compared with $331.6 million in a year ago.

Sales: Revenues were up 93{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0}, or $640.8 million, compared with $331.6 million in a year ago.

CEO Comments: “We continue to see strong consumer demand for the Crocs brand globally. On the back of record second quarter results and continued momentum, we are raising our full year 2021 guidance,” said Andrew Rees, CEO, in a statement.

Outlook: Croc expects full-year revenues to increase 60{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to 65{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0}, compared with 2020 revenues of $1.39 billion. In the third quarter, the company expects revenues to rise 60{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to 70{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} compared with third quarter 2020 revenues of $361.7 million.

Quick notes: In recent months, Crocs has focused on sharpening its direct-to-consumer business and slimming down on certain wholesale partnerships. Its DTC sales increased 78.6{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} year over year as a result.

Credit: Courtesy of Amazon

Credit: Courtesy of Amazon

Courtesy of Amazon

July 22: Skechers (SKX)

Earnings: Skechers earned $137.4 million, or 88 cents a share in Q2, compared to a loss of $68.1 million, or 44 cents, last year.

Sales: Revenues rose 127.3{028e8b43b440f88d50a94b0ac799d5b93a220d942414697744f001bd74eb64d0} to $1.66 billion from $729.5 million in Q2 of 2020.

CEO Comments: “We accomplished these financial results even as we continued to face COVID-19 related challenges including delayed shipments and port constraints as well as temporary store closures in some key markets, including India, Canada, and parts of Europe and South America,” said David Weinberg Skechers COO, in a statement.

Outlook: Skechers expects sales between $6.15 billion and $6.25 billion and diluted EPS between $2.55 and $2.65.

Quick notes: Williams Trading analyst Sam Poser said Skechers’ superior supply chain, comfort-focused products, and strong position in the wholesale market have made it a great option for retailers “who are in dire need of goods” during the current shipping crunch.

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