Under Armour Inc.’s sales beat expectations in the fourth quarter as the athletic-apparel maker benefited from e-commerce demand and made progress on its restructuring program, sending the shares higher.

Revenue in the period ended Dec. 31 fell 3 per cent to US$1.4 billion, topping the US$1.26 billion average of analyst estimates compiled by Bloomberg. E-commerce sales jumped 25 per cent.

Under Armour is looking to reverse a slump after the company struggled to take advantage of a shift toward athleticwear that has lifted some of its competitors. Chief Executive Officer Patrik Frisk has implemented a turnaround plan with an emphasis on cost cuts, higher cash flow and improved profitability. In the year ahead, he said the company is also focused on elevating its direct-to-consumer business, which analysts have said is not as strong as its competitor Nike Inc.

The company launched a new North American e-commerce platform in July, which Frisk attributed to helping the brand accelerate its digital sales. Shoppers have flocked to digital channels during the pandemic, helping apparel makers offset some of the decline in physical-store sales.

“If you went back three, four years at Under Armour, we did not have all the tools you need to understand consumer journey and how to best connect with the consumer at the moments when you have the opportunity,” Frisk said in an interview on Wednesday. “We are getting better and better at that.”

Under Armour’s shares soared as much as 12 per cent in New York, the biggest intraday gain since last April. The stock declined 21 per cent in 2020.

Premium Ambition

Part of this narrative is showing that Under Armour wants to be known as a premium brand. On a call with analysts, Frisk noted that “we don’t believe that undifferentiated retail” will help the company achieve growth. It is currently investing more in running and women’s products.

Under Armour’s sales in North America declined 6 per cent in the past quarter to US$924 million. The company said it had been resilient in navigating the pandemic and took US$62 million in charges related to its restructuring plan in the period.

Offering a preliminary forecast for 2021, Under Armour said it expects adjusted earnings of 12 cents to 14 cents a share. Analysts expect 14 cents. The company also said it would change its fiscal year to end March 31 as of the year beginning April 1, 2022.