Shares in sportswear brand Under Armour spiked today after international sales helped it to record forecast-beating numbers.
Revenue jumped five per cent to $1.4bn (£1bn) in the fourth quarter of 2017. This comprised a drop in wholesale revenue and a decline in North America.
But strong growth of 45 per cent in the Europe, Middle East and Africa (EMEA) region, a 36 per cent increase in Latin America and a 56 per cent Asia-Pacific jump helped to offset this.
Over the year as a whole, revenue was up three per cent to $5bn. Gross margin declined 140 basis points due to price cuts.
Why it's interesting
Founded in the 1990s, Under Armour has emerged as a major challenger to the monopoly of the likes of Nike and Adidas on the sports apparel market.
But a string of disappointing results had eroded investor confidence recently, with the stock heavily shorted.
Today the more positive results beat analyst expectations, sending the shares up more than 16 per cent.
It comes amid major restructuring plans for the company, which last year cost $124m.
What Under Armour said
"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 chief executive Kevin Plank.
"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."