Under Armour Inc (UA) Spikes 20 Percent on Strong Quarterly Results

Under Armour Shoe

The shares of Under Armour Inc (NYSE:UA) are trading higher on Thursday after reporting outstanding quarterly financial results. The stock price of the sportswear manufacturer surged more than 20% to $82.88 per share at the time of this writing around 1:47 in the afternoon in New York.

Under Armour 4Q financial performance

Under Armour reported that its net income for the fourth quarter of 2015 increased 21% to $106 million from $88 million in the same period a year earlier. The company’s earnings per diluted share were $0.48 compared with $0.40 in the year-ago quarter.

The sportswear manufacturer said its net revenues rose 31% to $1.17 billion from $895 million in same period a year earlier.

According to Under Armour its net revenues for its apparel increased 22% to $865 million driven by growth in basketball, golf, running, and training. Its net revenues from footwear climbed 95% to $167 million due to the success of its Curry signature basketball line and expanded running offerings.  Its net revenues from accessories went up 23% to 97 million due to new introductions across the bags category.

Under Armour’s direct-to-consumer net revenues surged 25% and its international revenues rose 70% year-over-year.

“Our core business remains incredibly strong and our 31% net revenue growth in the fourth quarter is clear evidence of the continued expansion in the breadth and depth of our Brand,” said Under Armour Chairman and CEO Kevin Plank, in a statement.

Mr. Plank said the company is “getting started in becoming the next great global brand” as it continues to make investments across people, systems, and digital.

Under Armour business outlook

For the fiscal 2016, the company expected a 25% growth in net revenues to approximately $4.95 billion, and a 23% increase in operating income to around $503 million

Under Armour estimated its interest expense to be approximately $35 million and its effective full tax rate to be around 38.5%.

Mr. Plank said, “The Under Armour brand has built tremendous equity over the past 20 years and our financial results are a reflection of that strength.  From shirts and shoes to your connected life, Under Armour will continue to be a leader in innovation to make all athletes better and redefine expectations for what a sports brand should be.”