Under Armour Inc’s (UA.N) quarterly sales jumped 30 percent as being the company’s new under armour outlet by NBA star Stephen Curry and golfer Jordan Spieth were a huge hit with customers.
Shares of your company, which raised its full-year 2016 sales forecast, rose up to 8.7 percent in morning trading on Thursday.
Under Armour’s quarterly sales have risen by at least 20 % over the past six years, helping the company replace Germany’s Adidas (ADSGn.DE) because the No. 2 sportswear maker in the United States this past year. Nike Inc (NKE.N) is definitely the market leader.
“The current market fears concerning the apparel slowdown were unfounded since they demonstrated another quarter of twenty percent growth, and gross margins were superior to we expected,” BB&T Capital Markets analyst Corinna Freedman said.
Under Armour’s sales of sports and outdoor apparel rose 20 percent to $666.6 million in the first quarter ended March 31, as increasing numbers of customers bought its training and golf clothing. Apparel accounts in excess of 60 percent in the company’s total revenue.
Footwear sales jumped 64 percent to $264.2 million on strong interest in the company’s under armour outlet australia, Curry One and Curry Two basketball shoes and Spieth’s newly-launched Drive One golf shoes.
Under Armour stated it expected sales within the second quarter to grow from the “high 20s” percentage range, and gross margins to become little changed compared with a year ago.
Under Armour’s gross margin fell to 45.9 percent from 46.9 percent inside the latest quarter, hurt by higher discounts along with the strong dollar. However, margins still topped analysts’ estimate of 45.4 percent, according to Thomson Reuters StarMine.
Freedman said because the company beat 17dexjpky forecast for gross margins, investors could possibly be optimistic that its second-quarter outlook could turn out to be conservative.
The under armour shoes raised its full-year sales forecast to around $5. billion from about $4.95 billion. Operating income for 2016 is already anticipated to be $503-$507 million, compared with its prior forecast of about $503 million.