Under Armour has announced financial results for the third quarter ended 30 September 2015. Net revenues increased 28% in Q3 2015 to reach US$1.20 billion. This is compared to net revenues of US$938 million in the prior year’s period.
On a currency neutral basis, net revenues increased 31% compared with the prior year’s period. Net income increased 13% in the third quarter of 2015 to US$100 million compared with US$89 million in the prior year’s period; and diluted earnings per share for the third quarter of 2015 were US$0.45 compared with US$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 23% to US$866 million compared with US$705 million in the same period of the prior year, driven primarily by enhanced product offerings in baselayer and the expanded Storm innovation platform.
- Third quarter footwear net revenues increased 61% to US$196 million from US$122 million in the prior year’s period, primarily reflecting continued product expansion across the running, basketball, and training categories.
- Third quarter accessories net revenues increased 22% to US$104 million from US$85 million in the prior year’s period, driven primarily by new introductions across the bags category.
- Direct-to-Consumer net revenues, which represented 26% of total net revenues for the third quarter, grew 28% year-over-year. International net revenues, which represented 11% of total net revenues for the third quarter, grew 52% year-on-year.
Kevin Plank, Chairman and CEO of Under Armour sad, “Our scoreboard in the third quarter not only marked our 22nd straight quarter of at least 20% net revenue growth, but also our first US$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.
“Leveraging these great successes throughout 2015, our current Rule Yourself global marketing campaign highlights the training and dedication that drives our athletes to be their best on the biggest stages.”
He continued, “When combined with over 150 million unique registered users across our Connected Fitness community, logging more than 6.5 billion food items and 1.5 billion workouts year-to-date, our brand is resonating with more athletes than ever before and we are investing to not only build deeper relationships with these athletes today, but fulfil our longer term vision to change the way athletes live.”
The company had previously anticipated 2015 net revenues of approximately US$3.84 billion, representing growth of 25% over 2014, and 2015 operating income in the range of US$405 million to US$408 million, representing growth of 14% to 15% over 2014.
Based on current visibility, Under Armour expects 2015 net revenues of approximately US$3.91 billion, representing growth of 27% over 2014, and 2015 operating income of approximately US$408 million, representing growth of 15% over 2014.
The 2015 guidance continues to reflect the net dilutive impact from the Connected Fitness acquisitions, as well as the impact of the strong dollar negatively affecting the company’s operating margin within its international businesses.
Kevin Plank concluded, “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 US$7.5 billion 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. Still, with all the success we have seen to date, we firmly believe that we are just getting started.”
