It’s been a busy week for Under Armour.

The Baltimore-headquartered athletic apparel and footwear brand, which sells some of its products in the promotional products industry, announced Tuesday, May 4, that its first quarter sales increased 35% compared to the same quarter the prior year, rising to nearly $1.26 billion.

The sales surge beat the expectations of analysts, who were predicting $1.13 billion. It also came a day after Under Armour announced that it would pay $9 million to settle regulatory claims that the Securities and Exchange Commission (SEC) had made against the firm.

As for Q1 2021, not only did sales jump, but net income soared too, hitting $77.75 million, or $0.17 per share. In Q1 2020, a period partially impacted by mandated store closures and other business challenges posed by the onset of the COVID-19 pandemic, Under Armour posted a loss of $589.68 million, or -$1.30 per share.

Excluding certain charges, Under Armour tallied $0.16 per share in this year’s first quarter, which still beat the $0.03 per share that economists had forecast, based on Refinitiv estimates, CNBC reported.

Sales in North America increased year over year by 32.3% to $805.7 million. Internationally, Under Armour saw the greatest growth in the Asia-Pacific region, where sales rose nearly 120% to $210.2 million.

Overall, Under Armour’s wholesale revenue for the first quarter of 2021 increased 35% to $800 million, while direct-to-consumer revenue increased 54% to $437 million. Online sales rose 69% across the business.

For the second quarter currently underway, Under Armour is forecasting sales growth of 70%. This year’s second quarter will compare to Q2 2020 when pandemic-related shutdowns were at their height in Under Armour’s key North American market. The apparel maker anticipates that sales growth in North America and Latin America will fuel the forecasted second quarter 2021 gain.

Buoyed by the strong first quarter and expectations of a robust Q2, Under Armour now predicts that its annual sales will rise at a high-teen percentage rate. 

“With a solid balance sheet and well-managed inventory, we’re confident in our ability to drive well through 2021 as we get back on offense and make measured progress to returning to sustainable, profitable growth over the long-term,” said Under Armour President and CEO Patrik Frisk.

Meanwhile, the $9 million settlement that Under Armour agreed to with the SEC centered on allegations that the company, in years past, failed to disclose that it had pulled forward orders from future quarters, which enabled Under Armour to meet Wall Street revenue estimates.

The alleged practice occurred for six consecutive quarters starting in the third quarter of 2015, the SEC said. Authorities have not accused Under Armour of engaging in the practice in Q1 2021.

While agreeing to the settlement, Under Armour has neither admitted nor denied any wrongdoing. The SEC isn’t planning to take enforcement action against Kevin Plank, the company’s co-founder and executive chairman, or Chief Financial Officer David Bergman.

According to SEC investigators, Under Armour pulled forward about $408 million in orders that were meant to be shipped in future quarters. That created uncertainty about whether or not Under Armour could achieve revenue guidance in those future periods, the SEC asserted.

“Under Armour created a misleading picture of the drivers of its financial results and concealed known uncertainties concerning its business,” SEC Denver Regional Director Kurt Gottschall said, as reported by The Wall Street Journal.