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Under Armour reports first quarter in $1bn sales
26
Oct '15
For the third quarter ended September 30, 2015, Under Armour reported its 22nd straight quarter of at least 20 per cent net revenue growth and also its first $1 billion quarter.

Under Armour recorded a 28 per cent expansion in net revenues to $1.20 billion compared with net revenues of $938 million in the prior year's third quarter.

As per an Under Armour press release, on a currency neutral basis, net revenues however soared 31 per cent over the third quarter of 2014.

In the reporting quarter, apparel segment net revenues increased 23 per cent year over year to $866 million, driven by enhanced product offerings in baselayer and the expanded Storm innovation platform.

Third quarter of 2015 footwear sales drove up steeply by 61 per cent from a year ago quarter to $196 million, primarily reflecting continued product expansion across the running, basketball, and training categories.

Net revenues in the quarter under review for the accessories segment grew 22 per cent year on year, driven primarily by new introductions across the bags category.

Direct-to-Consumer net revenues, which represent 26 per cent of total net revenues also surged 28 per cent in the reporting quarter.

International net revenues which represent 11 per cent of total net revenues for the third quarter of 2015, also mounted massively by 52 per cent over the corresponding quarter of 2014.

Net income rose slower at 13 per cent in the third quarter of 2015 to $100 million or $0.45 per diluted earnings per share as against $89 million or $0.41 per diluted earnings per share in the previous year's same period.

Cash and cash equivalents decreased 36 per cent to $159 million as on September 30, 2015 compared with $249 million at September 30, 2014.

Inventory at September 30, 2015 ascended 36 per cent to $867 million as against $637 million as on September 30, 2014.

Total debt expanded to $905 million at September 30, 2015 vis-a-vis $192 million at September 30, 2014, primarily reflecting borrowing to fund the two connected fitness acquisitions.

Under Armour had previously anticipated 2015 net revenues of approximately $3.84 billion, which it has now revised to approximately $3.91 billion, representing growth of 27% over 2014.

The company has also revised its earlier 2015 operating income forecast at between $405 and $408 million to approximately $408 million, representing growth of 15 per cent over 2014.

“The 2015 guidance continues to reflect the net dilutive impact from the connected fitness acquisitions and impact of the strong dollar negatively affecting operating margin within our international business,” it stated.

CEO Kevin Plank said, "Our scoreboard in the third quarter not only marked our 22nd straight quarter of at least 20 per cent net revenue growth, but also our first $1 billion quarter.” (AR)

Fibre2Fashion News Desk – India

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