BALTIMORE — Under Armour swung to a loss in its fourth quarter as it dealt with drastic changes in U.S. tax law. The company’s revenue topped analysts’ estimates though, bolstered by strong sales of footwear and accessories.
Shares surged nearly 10 percent before the market open on Tuesday.
For the period ended Dec. 31, Under Armour Inc. lost $87.9 million, or 20 cents per share. A year earlier the Baltimore-based company earned $103.2 million, or 23 cents per share.
Removing a charge tied to the tax overhaul and restructuring charges, Under Armour reported breakeven earnings. Analysts polled by Zacks Investment Research were looking for earnings of a penny per share.
Revenue climbed to $1.37 billion from $1.31 billion as footwear sales rose 9.5 percent and sales of accessories increased 6.1 percent. The performance beat the $1.31 billion in revenue analysts surveyed by Zacks expected.
Under Armour expects 2018 adjusted earnings in a range of 14 cents to 19 cents per share. Analysts predict earnings of 21 cents per share, according to analysts polled by FactSet.
The company also announced a new restructuring plan for 2018, saying that it anticipates approximately $110 million to $130 million of pretax restructuring and related charges under the plan, which includes facility and lease terminations, inventory-related charges and asset-related impairments. Combined with its 2017 restructuring plan, Under Armour said it expects the efforts to result in at least $75 million in annual savings in 2019 and going forward from there.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on UAA at https://www.zacks.com/ap/UAA