Under Armour Inc’s (UA.N) quarterly sales jumped 30 percent because the company’s new under armour store by NBA star Stephen Curry and golfer Jordan Spieth were a large hit with customers.
Shares of your company, that also raised its full-year 2016 sales forecast, rose just as much as 8.7 percent in morning trading on Thursday.
Under Armour’s quarterly sales have risen by a minimum of 20 % within the last six years, improving the company replace Germany’s Adidas (ADSGn.DE) as being the No. 2 sportswear maker in the usa last year. Nike Inc (NKE.N) is the market leader.
“The current market fears in regards to the apparel slowdown were unfounded since they demonstrated another quarter of 20 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 % to $666.6 million inside the first quarter ended March 31, as more customers bought its training and golf clothing. Apparel accounts for over 60 percent of your company’s total revenue.
Footwear sales jumped 64 percent to $264.2 million on strong need for the company’s under armour sale, Curry One and Curry Two basketball shoes and Spieth’s newly-launched Drive One golf shoes.
Under Armour stated it expected sales in the second quarter to develop in the “high 20s” percentage range, and gross margins to be little changed in contrast to this past year.
Under Armour’s gross margin fell to 45.9 percent from 46.9 percent from the latest quarter, hurt by higher discounts and also the strong dollar. However, margins still topped analysts’ estimate of 45.4 percent, as outlined by Thomson Reuters StarMine.
Freedman said since the company beat 17dexjpky forecast for gross margins, investors could be optimistic that its second-quarter outlook could end up being conservative.
The under armour shoes sydney raised its full-year sales forecast to around $5. billion from about $4.95 billion. Operating income for 2016 is already likely to be $503-$507 million, in comparison with its prior forecast of approximately $503 million.