Under Armour Pops 5% Following Q1 Beat, Raised Outlook
Under Armour said it earned $0.04 per share in the first quarter on revenue of $1.05 billion. Wall Street analysts were expecting the company to earn $0.02 per share on revenue of $1.02 billion.
Revenue rose 30 percent in the quarter year-over-year as wholesale net revenue grew 28 percent to $744 million while Direct-to-Consumer revenue grew 33 percent to $266 million. By region, North America revenue grew 26 percent and international revenues grew 56 percent year-over-year.
By product category, apparel revenue rose 20 percent to $667 million from a year ago, footwear revenue rose 64 percent to $264 million, accessories revenue rose 26 percent to $80 million.
Net income for the quarter rose 63 percent over the same time period to $19 million.
Looking forward to the full fiscal year 2016, Under Armour updated its sales outlook and expects total revenue to be approximately $5 billion, representing a growth of 26 percent over 2015's level. Operating income is expected to be in the range of $503 million to $507 million - a growth of 23 percent over 2015's level.
Kevin Plank, Chairman and CEO of Under Armour, stated, "For the past 24 consecutive quarters or six years, we have driven net revenue growth above 20% and we are incredibly proud of our start to 2016 with first quarter net revenue growth of 30%. The strong results posted this quarter truly demonstrate the balanced growth of our brand across product categories, channels and geographies. It also showcases our heightened focus on providing better service across our distribution channels, ensuring that our consumer consistently finds the newest, most premium product from us wherever they shop.
"In footwear, this includes the remarkable success of the Stephen Curry signature basketball line, as well as the exciting launches of our first smart running shoe and our new line of Jordan Spieth inspired golf shoes. Combined with the introductions of premium apparel technologies like Microthread and CoolSwitch, we will continue to drive elevated innovation and excitement to the athlete throughout the remainder of 2016."
Shares traded recently at $45.51, up 3.5 percent in the pre-market session.
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