World Footwear

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Under Armour with 30% growth in net revenue

Nov 10, 2014 United States
Under Armour with 30% growth in net revenue
The company announced third quarter revenue of 938 million US dollars, and declared it is now raising its 2014 net revenue outlook

Under Armour, Inc. announced its financial results for the third quarter ended on the 30th September. Net revenue increased 30% in the period to reach 938 million US dollars compared with 723 million US dollars in similar period in 2013. Net income increased 22% in the third quarter of 2014 to 89 million US dollars. Diluted earnings per share for the third quarter of the current fiscal year were 0.41 US dollars compared with 0.34 US dollars per share in the prior year's period.

Third quarter apparel net revenue increased 25.6% to 705 million US dolalrs compared with 561 million US dollars in the same period of the prior year, driven primarily by expanded offerings and platform innovations across training, golf and outdoor. Third quarter footwear net revenue increased 50.1% to 122 million US dollars from 81 million US dollars in similar period in 2013, led by new introductions in running and basketball. Third quarter accessories net revenue increased 32.0% to 85 million US dollars from 64 million US dollars, primarily driven by expanded offerings in headwear, bags, and gloves. Direct-to-Consumer net revenues, which represented 26% of total net revenue for the third quarter, grew 35% year-over-year. International net revenues, which represented 9% of total net revenue for the third quarter, grew 94% year-over-year.



"Our strong third quarter results demonstrate the power of the Under Armour brand. The momentum and growing confidence we outlined last quarter in Footwear and International were on full display in the third quarter with growth rates accelerating to 50% and 94%, respectively. Our Direct-to-Consumer business continues to drive our vision to Empower Athletes Everywhere with the debut of local E-Commerce sites in the United Kingdom, Germany, and France, as well as optimizing all global sites for mobile to stay ahead of where our consumers are going", commented Kevin Plank, Chairman and CEO of Under Armour, Inc.

Gross margin for the third quarter of 2014 was 49.6% compared with 48.4% in the prior year's quarter, primarily driven by higher import duties in the prior year's period and favorable year-over-year sales mix.

Net revenue for the nine months' period ended 30th September 2014 reached 1 649.3 million US dollars, growing 32.7% from similar period last year. Growth occurred across all categories, with special highlight to the footwear segment with 41.8% increase from similar period in 2013. Accumulated net income for the year totaled 120 million US dollars, growing 22.6% from last year.

The company had previously anticipated 2014 net revenue in the range of 2.98 billion US dollars to 3.0 billion US dollars, representing growth of 28% to 29% over 2013. Based on the results achieved so far in the fiscal year of 2014, Under Armour, Inc.  expects 2014 net revenue of approximately 3.03 billion US dollars, representing growth of 30% over 2013, which according to Mr. Plank will represent “significant milestones for the Brand, but we believe we are just getting started”.

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