UNDER ARMOUR CONTINUES MAJOR GROWTH IN THIRD QUARTER
Baltimore-based athletic brand Under Armour, Inc has announced financial results for the third quarter ended September 30, 2016. Net revenues increased 22 percent in the third quarter of 2016 to $1.47 billion compared with net revenues of $1.20 billion in the prior year’s period. Operating income increased 16 percent in the third quarter of 2016 to $199 million compared with $171 million in the prior year’s period. Net income increased 28 percent in the third quarter of 2016 to $128 million compared with $100 million in the prior year’s period and diluted earnings per share for the third quarter of 2016 were $0.29 compared with $0.23 in the prior year’s period.
During the third quarter, wholesale net revenues grew 19 percent year-over-year to $1.01 billion compared to $850 million in the prior year’s period, while Direct-to-Consumer net revenues grew 29 percent year-over-year to $408 million compared to $316 million in the prior year’s period. North America net revenues for the third quarter grew 16 percent year-over-year. International net revenues, which represented 15 percent of total net revenues for the third quarter, grew 74 percent year-over-year.
Within product categories, apparel net revenues increased 18 percent to $1.02 billion compared with $866 million in the same period of the prior year, led by growth in men’s training, women’s training, golf and team sports. Footwear net revenues increased 42 percent to $279 million from $196 million in the prior year’s period, driven by strong growth in running and basketball. Accessories net revenues increased 18 percent to $122 million from $104 million in the prior year’s period, driven primarily by growth in bags and headwear.
“This marks our 26th consecutive quarter of 20+% revenue growth demonstrating the strength of the Under Armour Brand,” said Kevin Plank, the company’s CEO. “From the Olympic Games in Rio to the launch of Under Armour Sportswear at New York Fashion Week, the Under Armour Brand continues to extend its reach to new consumers while remaining authentic and rooted in sport. In the third quarter, our key strategies and investments to diversify our portfolio on a global scale were evident across categories.”
As a result, Under Armour continues to expect 2016 net revenues of approximately $4.925 billion, representing growth of 24% over 2015, and 2016 operating income of $440 million to $445 million, representing growth of 8 to 9 percent over 2015.
