Under Armour Results Jump on Strength of Stephen Curry Shoe Line
Under Armour Results Jump on Strength of Stephen Curry Shoe Line
ENLARGE
Under Armour reported double-digit revenue and profit gains on Thursday. Photo: Bloomberg News
By
Austen Hufford
Updated April 21, 2016 7:56 a.m. ET
Under Armour Inc. again posted double-digit revenue and profit gains in its latest quarter as Stephen Curry’s basketball shoe line continues to power its footwear business.
The growth led the surging brand to raise its already upbeat 2016 revenue forecast to $5 billion from the $4.95 billion it had previously projected.
Shares of the company jumped 4.6% premarket to $46. As of Wednesday’s close, the stock had increased 23% in the past three months.
The Baltimore-based company has taken advantage of the success of its endorsed athletes. Mr. Curry’s NBA championship win with the Golden State Warriors last year and their recent record-breaking season helped propel sales for Under Armour’s first signature basketball line. Footwear sales increased 64% to $264 million from the same quarter a year before, with Chief Executive Kevin Plank citing the “remarkable success” of the Stephen Curry basketball line.
ENLARGE
Close-up of the Under Armour sneakers worn by Stephen Curry of the Golden State Warriors as he warms up prior to the game against the Memphis Grizzlies at ORACLE Arena on April 13, 2016 in Oakland, Calif.Photo: Getty Images
Apparel sales climbed 20% to $667 million, led by growth in training and golf. Accessories sales increased 26% to $80 million, driven primarily by growth in headwear and bags.
While more than three-quarters of the company’s revenue is North America-based, foreign revenue increased 56%.
For the quarter, the company posted a profit of $19.2 million, or four cents a share, up from $11.7 million, or three cents a share, a year earlier. Revenue climbed 30% to $1.05 billion.
Analysts polled by Thomson Reuters had forecast per-share earnings of two cents on revenue of $1.04 billion.
Gross margin slid to 45.9% from 46.9% the year before, hurt by higher liquidations and the strength of the U.S. dollar.
Write to Austen Hufford at austen.hufford@wsj.com
Under Armour Results Jump on Strength of Stephen Curry Shoe Line
Under Armour reported double-digit revenue and profit gains on Thursday. Photo: Bloomberg News
By
Austen Hufford
Updated April 21, 2016 7:56 a.m. ET
Under Armour Inc. again posted double-digit revenue and profit gains in its latest quarter as Stephen Curry’s basketball shoe line continues to power its footwear business.
The growth led the surging brand to raise its already upbeat 2016 revenue forecast to $5 billion from the $4.95 billion it had previously projected.
Shares of the company jumped 4.6% premarket to $46. As of Wednesday’s close, the stock had increased 23% in the past three months.
The Baltimore-based company has taken advantage of the success of its endorsed athletes. Mr. Curry’s NBA championship win with the Golden State Warriors last year and their recent record-breaking season helped propel sales for Under Armour’s first signature basketball line. Footwear sales increased 64% to $264 million from the same quarter a year before, with Chief Executive Kevin Plank citing the “remarkable success” of the Stephen Curry basketball line.
Close-up of the Under Armour sneakers worn by Stephen Curry of the Golden State Warriors as he warms up prior to the game against the Memphis Grizzlies at ORACLE Arena on April 13, 2016 in Oakland, Calif.Photo: Getty Images
Apparel sales climbed 20% to $667 million, led by growth in training and golf. Accessories sales increased 26% to $80 million, driven primarily by growth in headwear and bags.
While more than three-quarters of the company’s revenue is North America-based, foreign revenue increased 56%.
For the quarter, the company posted a profit of $19.2 million, or four cents a share, up from $11.7 million, or three cents a share, a year earlier. Revenue climbed 30% to $1.05 billion.
Analysts polled by Thomson Reuters had forecast per-share earnings of two cents on revenue of $1.04 billion.
Gross margin slid to 45.9% from 46.9% the year before, hurt by higher liquidations and the strength of the U.S. dollar.
Write to Austen Hufford at austen.hufford@wsj.com