Under Armour FY14 revenues soar 32 percent

For the full year 2014, net revenues at Under Armour increased 32 percent to 3.08 billion dollars compared with 2.33 billion dollars in the prior year and compared with the company's prior outlook of 3.03 billion dollars. Diluted earnings per share for 2014 increased 27 percent to 0.95 dollars compared with 0.75 dollars per share in the prior year.

For the fourth quarter ended December 31, 2014, Under Armour net revenues increased 31 percent to 895 million dollars compared with net revenues of 683 million dollars in the prior year's period. Net income increased 37 percent in the fourth quarter of 2014 to 88 million dollars compared with 64 million dollars in the prior year's period. Diluted earnings per share were 0.40 dollars compared with 0.30 dollars per share in the prior year's period.

Commenting on the results, Kevin Plank, Chairman and CEO of Under Armour said, “We are incredibly proud of recording our 19th consecutive quarter of over 20 percent net revenue growth, including achieving over 30 percent growth in each quarter of 2014, demonstrating the unending opportunity we see across our five key growth drivers. 2014 marked the year we ignited a powerful new conversation with women, as our I Will What I Want campaign underscored our long-term commitment to both female athletes and athletic females. We built upon our global mission to Make All Athletes Better, as we nearly doubled our International revenues with acceleration in both Europe and China as well as new market strategies in South America, Southeast Asia, and the Middle East.”

Fourth quarter apparel net revenues increased 30 percent to 708 million dollars compared with 546 million dollars in the same period of the prior year, driven primarily by new offerings across training, hunting, and studio, including expanded platform innovations in ColdGear Infrared, Storm, and Charged Cotton. Fourth quarter footwear net revenues increased 55 percent to 86 million dollars in the prior year's period, led by expanded offerings in running and basketball. Fourth quarter accessories net revenues increased 22 percent to 79 million dollars. Direct-to-Consumer net revenues, which represented 38 percent of total net revenues for the fourth quarter, grew 27 percent year-over-year. International net revenues, which represented 9 percent of total net revenues for the fourth quarter, grew 123 percent year-over-year.

Apparel net revenues for the full year increased 30 percent to 2.29 billion dollars compared with 1.76 billion dollars in the prior year, driven primarily by category expansion in training, outdoor, golf, and studio. Footwear net revenues increased 44 percent to 431 million dollars during 2014 compared to 299 million dollars in 2013, reflecting expanded offerings in running and basketball. Accessories net revenues increased 27 percent to 275 million dollars and Direct-to-Consumer net revenues, which represented 30 percent of total net revenues for both 2014 and 2013, grew 32 percent over the prior year. International net revenues, which represented 9 percent of total net revenues for 2014, grew 96 percent year-over-year.

In early January of 2015, the company completed its acquisition of Endomondo for a purchase price of 85 million dollars. Based in Copenhagen, Denmark, Endomondo has one of the largest global connected fitness communities with approximately 20 million registered users primarily concentrated in Europe, providing a strong strategic complement to the company's existing digital platform. In addition, the company also announced an agreement to acquire MyFitnessPal for a purchase price of 475 million dollars. San Francisco-based MyFitnessPal is the leading resource for healthy living and nutrition with over 80 million registered users, expanding the current offerings for Under Armour's Connected Fitness platform to now include nutritional resources such as a calorie counter, nutrition and exercise tracker.

Based on current visibility, the company expects 2015 net revenues of approximately 3.76 billion dollars, representing growth of 22 percent over 2014 and 2015 operating income in the range of 397 million dollars to 407 million dollars, representing growth of 12 percent to 15 percent over 2014.