- Prachi Singh |
Under Armour net revenues increased 31 percent in the fourth quarter of 2015 to 1.17 billion dollars compared with net revenues of 895 million dollars in the prior year's period. On a currency neutral basis, net revenues increased 33 percent. For the full year 2015, net revenues increased 28 percent to 3.96 billion dollars compared with 3.08 billion dollars in the prior year and compared with the company's prior outlook of 3.91 billion dollars.
Commenting on the company’s performance, Kevin Plank, Chairman and CEO of Under Armour, stated, "Our core business remains incredibly strong and our 31 percent net revenue growth in the fourth quarter is clear evidence of the continued expansion in the breadth and depth of our Brand. We delivered our 25th consecutive quarter of more than 20 percent net revenues growth in our largest product category of apparel. Moreover, we continued to diversify our product offering and geographic reach."
Positive results in the fourth quarter
Operating income increased 21percent in the fourth quarter to 178 million dollars compared with 146 million dollars in the prior year's period. Net income increased 21 percent to 106 million dollars compared with 88 million dollars in the prior year's period and diluted earnings per share were 0.48 dollar compared with 0.40 dollar per share in the prior year's period.
Fourth quarter apparel net revenues increased 22 percent to 865 million dollars, which the company said were led by growth in training, running, golf and basketball. Footwear net revenues increased 95 percent to 167 million dollars, reflecting the success of the Curry signature basketball line and expanded running offerings. Accessories net revenues increased 23 percent to 97 million dollars. Direct-to-Consumer net revenues, which represented 36 percent of total net revenues, grew 25 percent year-over-year. International net revenues, which represented 12 percent of total net revenues, grew 70 percent year-over-year, or 85 percent on a currency neutral basis.
Full year operating results reflect growth
Operating income grew 15 percent to 409 million dollars in 2015 compared with 354 million dollars in the prior year and compared with the company's prior outlook of 408 million dollars. Diluted earnings per share increased 11 percent to 1.05 dollars compared with 0.95 dollar per share in the prior year, inclusive of a 0.10 dollar dilutive impact of the Connected Fitness acquisitions.
Apparel net revenues increased 22 percent to 2.80 billion dollars compared with 2.29 billion dollars in the prior year, led by growth in golf, running and team sports. Footwear net revenues increased 57 percent to 678 million dollars and accessories net revenues increased 26 percent to 347 million dollars. Direct-to-Consumer net revenues, which represented 30 percent of total net revenues for 2015, grew 27 percent over the prior year. International net revenues, which represented 11 percent of total net revenues, grew 69 percent year-over-year, or 84 percent on a currency neutral basis.
Updates 2016 outlook
Based on current visibility, the company expects 2016 net revenues of approximately 4.95 billion dollars, representing growth of 25 percent over 2015 and 2016 operating income of approximately 503 million dollars, representing growth of 23 percent over 2015, in line with the financial targets outlined at the company's September 2015 Investor Day.
"In 2016 we celebrate our 20th year in business. The Under Armour brand has built tremendous equity over the past 20 years and our financial results are a reflection of that strength. Quarter after quarter, year after year, we continue to post meaningful growth across our core businesses with significant opportunity to grow as we diversify both our product portfolio and our geographic reach,” added Plank.