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Under Armour Surges Following Q4 Earnings Beat, Guidance


Shares of Under Armour Inc (NYSE: UA) were trading higher by 11 percent at $76.25 early Thursday morning after the company reported its fourth quarter results.

Under Armour earned $0.48 per share in the fourth quarter on revenue of $1.17 billion. Wall Street analysts were expecting the company to earn $0.46 per share on revenue of $1.12 billion.

Operating income for the quarter rose 21 percent from a year ago to $178 million, while net income rose 21 percent to $106 million over the same time period.

Under Armour noted that revenue from apparel in the quarter rose 22 percent from a year ago to $865 million due to growth in training, running, golf and basketball related sales. Footwear sales surged 95 percent from a year ago to $167 million, primarily due to its Stephen Curry signature basketball line and expanded running offerings. Finally, accessories sales rose 23 percent from a year ago to $79 million and was driven by new introduction across the bags category.

Related Link: Morgan Stanley: How Steph Curry Can Save Under Armour

Direct-to-consumer revenues represented 36 percent of total net revenues for the fourth quarter and represents a 25 percent growth year-over-year.

International revenue represented 12 percent of total sales during the fourth quarter and grew 70 percent year-over-year, or 85 percent on a currency neutral basis.

Looking forward, Under Armour said it expects revenue to total $4.95 billion during the full upcoming fiscal year 2016 (25 percent growth over 2015) which compares favorably to the $4.91 billion Wall Street analysts were expecting.

Under Armour also guided its operating income to be $503 million in the full fiscal year, representing a growth of 23 percent over 2015 levels.

Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "Our core business remains incredibly strong and our 31% net revenue growth in the fourth quarter is clear evidence of the continued expansion in the breadth and depth of our Brand. We delivered our 25th consecutive quarter of more than 20% net revenues growth in our largest product category of apparel. Moreover, we continued to diversify our product offering and geographic reach, driving significant market share gains in key strategic areas like basketball footwear, while better meeting the needs of the global athlete with investments in our global Brand House stores and e-commerce sites helping drive 70% growth in international. With our continued investments across people, systems, and digital, we are confident in our ability to build upon this tremendous momentum, reinforcing our belief that we are just getting started in becoming the next great global brand."


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