• Home
  • News
  • Business
  • Q3 net revenues at Under Armour jump 28 percent

Q3 net revenues at Under Armour jump 28 percent

By Prachi Singh

loading...

Scroll down to read more

Net revenues at Under Armour increased 28 percent for the third quarter ended September 30, 2015 to 1.20 billion dollars compared with net revenues of 938 million dollars in the prior year's period. On a currency neutral basis, net revenues increased 31 percent compared with the prior year's period.

"Our scoreboard in the third quarter not only marked our 22nd straight quarter of at least 20 percent net revenue growth, but also our first one billion quarter. Our ongoing success in 2015 has been driven by innovative, head-to-toe product, combined with game-changing performances by our athletes,” said Kevin Plank, Chairman and CEO of Under Armour.

Growth witnessed across categories

Third quarter apparel net revenues increased 23 percent to 866 million dollars compared with 705 million dollars in the same period of the prior year, driven primarily by enhanced product offerings in baselayer and the expanded Storm innovation platform. Footwear net revenues increased 61 percent to 196 million dollars from 122 million dollars in the prior year's period. The company said that this was driven by continued product expansion across the running, basketball, and training categories.

Accessories net revenues increased 22 percent to 104 million dollars from 85 million dollars in the prior year's period, driven primarily by new introductions across the bags category. Direct-to-Consumer net revenues, which represented 26 percent of total net revenues, grew 28% year-over-year. International net revenues, which represented 11 percent of total net revenues for the third quarter, grew 52 percent year-over-year.

Gross margin was 48.8 percent compared with 49.6 percent in the prior year's period, primarily reflecting the impacts of foreign exchange rates and sales mix, partially offset by favorable product margins. Third quarter operating income increased 17 percent to 171 million dollars. Net income increased 13 percent to 100 million dollars compared with 89 million dollars in the prior year's period and diluted earnings per share were 0.45 dollar compared with 0.41 dollar per share in the prior year's period, inclusive of the impacts of the Endomondo and MyFitnessPal acquisitions.

Updated 2015 outlook

The company had previously anticipated 2015 net revenues of approximately 3.84 billion dollars, representing growth of 25 percent over 2014, and 2015 operating income in the range of 405 million dollars to 408 million dollars, representing growth of 14 percent to 15 percent over 2014. Based on current visibility, the company expects 2015 net revenues of approximately 3.91 billion dollars, representing growth of 27 percent over 2014 and 2015 operating income of approximately 408 million dollars, representing growth of 15 percent over 2014.

“We are experiencing powerful brand momentum in 2015 and we continue to invest to capitalize on our success in the near-term while establishing the foundation for sustainable growth in the future. We are confident that the building blocks to reach our Investor Day target of 7.5 billion dollars in net revenues by 2018 are firmly in place. As we think bigger about the opportunity of our brand, an ongoing focus on investing in key areas like footwear, international, Connected Fitness and manufacturing capability will position us for the long runway of growth beyond just the next three years,” concluded Plank.

Under Armour