Under Armour Revenue Growth Continues
July 26 2016 - 9:20AM
Dow Jones News
Under Armour Inc.'s revenue continued to surge in the latest
quarter, as the apparel maker posted double-digit sales gains in
all three of its segments, especially footwear.
The Baltimore-based company has benefited from the success of
its endorsed athletes. In the quarter reported Tuesday, its Stephen
Curry basketball line helped footwear sales surge 58% to $242.7
million from a year ago.
Apparel sales, meanwhile, climbed 19% to $613 million, again led
by growth in training and golf. Accessories sales rose 21% to $83
million, driven mostly by headwear and bags.
And while more than three-quarters of the company's revenue is
North America-based, foreign revenue increased 68%.
For the quarter, the company posted a loss of $52.7 million, or
12 cents a share, compared with a year-earlier profit of $14.8
million, or 3 cents a share, reflecting the impact of a $59 million
stock dividend paid to Class C shareholders during the quarter.
Results also included a previously reported $23 million
impairment charge related to the liquidation of Sports Authority.
The company booked an impairment charge of $32 million in the
prior-year period.
Revenue increased 28% to $1 billion, in line with analysts'
expectations.
Gross margin slipped to 47.7% from 48.4% a year ago. The company
backed its 2016 revenue forecast—which it had lowered in May—for
$4.93 billion.
Shares, which have risen 4.7% this year, slipped 2.4%
premarket.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
July 26, 2016 09:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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