Under Armour raises 2015 outlook following strong Q3
The sports label Under Armour announced on Thursday its third quarter results. In the period ended September 30, it posted a net revenues rise to $1.20 billion, up 28% from net revenues of $938 million in the prior year's period. On a currency neutral basis, net revenues increased by 31%.
Kevin Plank, Chairman and CEO of Under Armour stated: "Our scoreboard in the third quarter not only marked our 22nd straight quarter of at least 20% net revenue growth, but also our first $1 billion quarter. Our ongoing success in 2015 has been driven by innovative, head-to-toe product, combined with game-changing performances by our athletes.”
The company saw its net income increase by 13% in the third quarter of 2015 to $100 million, compared with $89 million in the same date last year. Diluted earnings per share for the third quarter of 2015 were $0.45 compared with $0.41 per share in the prior year's period, inclusive of the impacts of the Endomondo and MyFitnessPal acquisitions.
Third quarter apparel net revenues increased by 23% to $866 million, while footwear net revenues rose 61% to $196 million reflecting continued product expansion across the running, basketball, and training categories. Accessories also grew by 22% to $104 million driven by new products.
International net revenues, which represented 11% of total net revenues for the third quarter, grew by 52% year-on-year.
Gross margin for the third quarter of 2015 was 48.8% compared with 49.6% in the prior year's period, primarily reflecting the impacts of foreign exchange rates and sales mix, partially offset by favorable product margins. Operating income also rose by 17% to $171 million compared with $146 million in the prior year's period.
Following the positive performance it recorded, Under Armour announced it has raised its 2015 guidance from $3.84 billion in net revenues to $3.91 billion. The sports label expects revenue growth of 27% over 2014, and 2015 operating income of approximately $408 million.
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