Why Under Armour Stock Just Jumped 7%
Shares of sportswear maker Under Armour (NYSE: UA) (NYSE: UAA) went on a tear in Wednesday trading and were up 7.4% as of 2:15 p.m. EDT. The jump wasn't because of anything Under Armour did, but because of something its archrival Nike (NYSE: NKE) just did.
Last night, Nike reported first-quarter 2021 earnings results that raced past expectations with $10.6 billion in revenue, which was down 1% year over year but still 16% ahead of analyst estimates. And Nike's profits were actually up during the quarter, rising 10% year over year to $0.95 per share, also ahead of estimates and indicative of pricing power in the sportswear sector.
Nike even issued strong guidance for the year, saying that sales will be flat in the first half of fiscal 2021 (versus the small decline seen in Q1) but will rise by at least the high single digits, and possibly as much as the low double digits, as the year progresses.
Source Fool.com
