Under Armour’s Stock Rises 23% After Stronger-Than-Expected 2017 Fourth Quarter Review
On Tuesday, Under Armour’s stock jumped more than 17% from $14.24 per share to $16.72 per share after a stronger-than-expected Fourth Quarter Review, according to analysts. The review showed 5% revenue growth, totaling $1.4 billion, for the company. Today, the stock has been as high as $17.55 per share, a 23% jump since the close of the day on Monday. The stock reached a low point of $11.61 per share in November 2017 and began 2017 just above $30 per share.
North American revenue was down 5% in the Fourth Quarter, but international revenue was up 47%.
Under Armour had a net loss of $88 million in the quarter due to an one-time charge related to the U.S. Tax Act and the impact of the restructuring plan announced in 2018 which resulted in 280 employee layoffs, including 140 employees in the Baltimore area. Under Armour had an adjusted net loss of $1 million excluding these one-time items.
Under Armour is expected to incur additional restructuring charges of about $130 million throughout the remainder of 2018 stemming from lease and facility terminations. Under Armour anticipates a minimum of $75 million in savings annually from the restructuring efforts in 2019 and beyond.
“After years of rapid growth and building a globally recognized brand, the dynamic landscape of 2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company,” said Under Armour Chairman and CEO Kevin Plank in a press release. “A year into this journey, our fourth quarter and full year results demonstrate that the tough decisions we’re making are generating the stability necessary to create a more consistent and predictable path to deliver long-term value to our shareholders.”
Under Armour, which is currently headquartered at Tide Point in Locust Point, is planning a new 50-acre, 3.9 million sq. ft. campus at the former Port Covington Shopping Center. Under Armour completed what it calls “Phase Zero” in January 2016. This included the conversion of the former Sam’s Club into Building 37, a 170,000 sq. ft. office, café, and amenity space. The former Walmart has also been used for Under Armour sample sales.
Phase One was expected to begin in 2017 but a construction start date has not yet been announced. This phase will feature buildings, totaling more than 500,000 sq. ft. of space, and a 1,500-space parking garage, which will be expanded to 5,000 spaces in the future. The buildings include two nine-story office buildings totaling more than 300,000 sq. ft. of space, and two one-story “plinths” adjacent to the buildings. Under Armour will also construct a new visitor center.
Under Armour’s campus is part of a $5.5 billion, 266-acre proposed redevelopment of Port Covington by Kevin Plank’s Sagamore Development Company.
Under Armour is also nearing completion on a 1.3 million sq. ft. distribution and warehouse facility at Sparrows Point in Baltimore County. The facility will be part of Tradepoint Atlantic’s 3,100-acre redevelopment project at the former steel mill.
Photo courtesy of Under Armour
About the Author: Kevin Lynch
Founder and Publisher of SouthBmore.com, longtime resident of South Baltimore, and a graduate of Towson University. Diehard Ravens and O's fan, father of three, amateur pizza chef, skateboarder, and "bar food" foodie. Email me at Kevin@InceptMM.com and follow me on Twitter at @SoBoKevin.
