Under Armour's Revenue Boosted By Strong Shoe Sales

Under Armour's revenue for the second quarter rose 28 percent year-over-year to $1.0 billion. Breaking down the company's revenue by segment reveals what may prove to be a growing trend in basketball shoe sales.

Under Armour's footwear sales surged 58 percent year-over-year to $243 million. The company singled out in its earnings press release its Steph Curry signature basketball line.

Steph Curry Is Invaluable To Under Armour's Brand

Curry, the reigning NBA MVP, could help boost Under Armour's market capitalization by billions of dollars.

Morgan Stanley's Jay Sole said earlier this year that under a bull case scenario, Under Armour's valuation could surge to $28.2 billion from its valuation of $14.1 billion at the time.

Related Link: Steph Curry Worth $14 Billion To Under Armour

Sole even went as far as to suggest that if Curry proves to be the next Michael Jordan, the "Curry effect" on Under Armour's stock could be "so strong" and "puts a halo over the entire brand."

Analysts at Bank of America shared a similar sentiment.

"UA is currently seeing unprecedented footwear sell-through rates at retail driven by the Speedform platform and Steph Curry signature basketball sneaker," the analysts said in a research note on May 10. "Steph Curry is supporting a large acceleration across UA with multiple opportunities in Kid's, China, core wholesale and direct-to-consumer in both footwear and apparel."

What's Next?

Following the NBA finals in which Curry and his Golden States Warriors lost to LeBron James and the Cleveland Cavaliers, Fox Business handed the real MVP title to Under Armour's CEO Kevin Plank for pulling off what could be considered "the greatest endorsement steal in the history of the NBA."

After all, Under Armour signed Curry for just $4 million a year.

As to what's next for Curry and the Golden State Warriors? The team's signing of free agent and four-time scoring champion Kevin Durant suggests a visit to the NBA finals for the third straight year is nearly guaranteed.

Should Curry add another championship ring to his collection, investors could reasonably expect Under Armour's stock to benefit as well.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!