In news that can be welcomed only in a place like Wall Street, Under Armour recently reported that its sales were down three percent in the fourth quarter, but that was okay since both sales and earnings easily topped Wall Street targets.

The company forecasted sales for the current year to climb in the high-single-digit percentage rate, reflecting a high-single-digit growth rate in North America and a high-teens growth rate in its international business.

”Improving brand strength and consistent operational execution delivered better-than-expected results in the fourth quarter,” Under Armour president and CEO Patrik Frisk said in a statement. “Our global team was exceptionally resilient and disciplined amid a highly challenging year which included the COVID-19 pandemic and for Under Armour, a comprehensive restructuring effort including further operating model refinements.”

Among the highlights and lowlights of the fourth quarter:

• Revenue was down three percent to $1.4 billion. Wall Street’s consensus estimate had been $1.27 billion.
• Gross margin increased 210 basis points to 49.4 percent compared to the prior year.
• Selling, general and administrative expenses decreased 4 percent to $586 million, or 41.7 percent of revenue.
• Restructuring and impairment charges were $52 million consisting of $50 million of restructuring and related impairment charges and $2 million of long-lived asset impairments.
• Operating income was $56 million. Adjusted operating income was $120 million.
• Other income (expense), net was $179 million, driven by a $182 million gain due to selling the company’s MyFitnessPal platform. Excluding the gain on sale, adjusted other expense net was $3 million.
• Net income was $184 million against a loss of $15.3 million a year ago. Adjusted net income was $55 million.
• Inventory was relatively flat at $896 million.

For the full year, revenue was down 15 percent to $4.5 billion and operating loss was $613 million. Adjusted operating income was $537 thousand. Net loss was $549 million. Adjusted net loss was $120 million.

As part of its quarterly report, Under Armour had announced a $550 million to $600 million restructuring plan designed to rebalance its cost base to improve profitability and cash flow. The company recognized $473 million of pre-tax charges for the full year, including $62 million in the fourth quarter. Of the $473 million recognized, there were $125 million in cash related charges and $348 million in non-cash related charges.

Looking ahead to the remainder of 2021, Under Armour’s full-year 2021 outlook include:

• Revenue is expected to be up at a high-single-digit percentage rate.
• Operating income is expected to reach $5 million to $25 million. Excluding the impact of continued restructuring efforts, adjusted operating income is expected to reach $130 million to $150 million.
• Due to ongoing uncertainty related to COVID-19 and its potential effect on global markets, there could be other material impacts on the company’s full-year business results in 2021.

As previously announced on December 18, 2020, Under Armour completed the sale of the MyFitnessPal business to Francisco Partners for $345 million.