Under Armour UA +1.47% profit and revenue surged in the fourth quarter, propelled by growing footwear sales, and prompting the company to offer a better-than-expected outlook.
Investors cheered the strong results and sent shares up 14% in pre-market trading.
During the quarter, revenue rose 31% to $1.17 billion, above analyst estimates of $1.12 billion. A particularly bright spot was the company’s surging footwear sales, which skyrocketed 95% to $167 million, driven by an expanded running shoe line and the success of the Stephen Curry signature basketball shoe line.
Apparel, which remains Under Armour’s largest sales segment, grew 22% to $865 million. This reflects growth in training, running, golf and basketball clothing. Accessory sales grew 23% to $97 million, driven by new bags.
Overall net income rose to $105.6 million, or 48 cents per share, up from $87.7 million, or 40 cents per share, a year earlier. This topped analyst estimates of 46 cents per share.
Looking forward, Under Armour is projecting 2016 full-year revenue of $4.95 billion, above analysts expectations of $4.91 billion.
“Our scoreboard remains strong…and we’re capping off the year with another solid finish,” said CEO Kevin Plank on an earnings call with investors.
Under Armour Revenue Rises 31%, Helped By A Surge In Shoe Sales
Under Armour's profit and revenue surged in the fourth quarter, propelled by growing footwear sales, and prompting the company to offer a better-than-expected outlook.
No comments:
Post a Comment