- Prachi Singh |
First quarter net revenues at Under Armour, ended March 31, 2016 increased 30 percent to 1.05 billion dollars compared with 805 million dollars in the prior year's period. On a currency neutral basis, net revenues increased 32 percent.
“For the past 24 consecutive quarters or six years, we have driven net revenue growth above 20 percent and we are incredibly proud of our start to 2016 with first quarter net revenue growth of 30 percent. The strong results posted this quarter truly demonstrate the balanced growth of our brand across product categories, channels and geographies,” said Kevin Plank, Chairman and CEO of Under Armour.
Net incomes increases 63 percent in Q1
Operating income increased 26 percent to 35 million dollars compared with 28 million dollars in the prior year's period and net income increased 63 percent to 19 million dollars compared with 12 million dollars in the prior year's period. Diluted earnings per share were 0.04dollar compared with 0.03 dollar same period, last year.
During the first quarter, wholesale net revenues grew 28 percent year-over-year to 744 million dollars, while direct-to-consumer net revenues grew 33 percent to 266 million dollars. North America net revenues were up 26 percent or 27 percent on a currency neutral basis. International net revenues, which represented 14 percent of total net revenues for the first quarter, grew 56 percent year-over-year, or 65 percent on a currency neutral basis.
Product categories report rise in Q1 revenues
Within product categories, apparel net revenues increased 20 percent to 667 million dollars, led by growth in training and golf. Footwear net revenues increased 64 percent to 264 million dollars, which the company said primarily reflects the ongoing success of the Curry signature basketball line and expanded running offerings. Accessories net revenues increased 26 percent to 80 million dollars driven by growth in headwear and bags.
Updates 2016 outlook, expects 26 percent revenue growth
Based on current visibility, the company expects 2016 net revenues of approximately 5 billion dollars, representing growth of 26 percent over 2015 and 2016 operating income in the range of 503 million dollars to 507 million dollars, representing growth of 23 percent to 24 percent over 2015.
“This year marks our 20th year in business, which is a great milestone for our company. Our robust growth this quarter demonstrates the power of our brand with growth coming from every part of our business. With this unrelenting consumer focus and ongoing investment, we are setting the foundation for our growth story over the next 20 years," concluded Plank.