Under Armour Inc’s (UA.N) quarterly sales jumped 30 percent since the company’s new under armour outlet by NBA star Stephen Curry and golfer Jordan Spieth were a large hit with customers.
Shares in the company, that raised its full-year 2016 sales forecast, rose as much as 8.7 percent in morning trading on Thursday.
Under Armour’s quarterly sales have risen by a minimum of twenty percent over the past six years, improving the company replace Germany’s Adidas (ADSGn.DE) as 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 regarding the apparel slowdown were unfounded as they demonstrated another quarter of 20 % growth, and gross margins were far better than 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 from the first quarter ended March 31, as increasing numbers of customers bought its training and golf clothing. Apparel accounts for longer than 60 % of your company’s total revenue.
Footwear sales jumped 64 percent to $264.2 million on strong requirement for 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 increase from the “high 20s” percentage range, and gross margins being little changed in contrast to this past year.
Under Armour’s gross margin fell to 45.9 percent from 46.9 percent inside the latest quarter, hurt by higher discounts as well as the strong dollar. However, margins still topped analysts’ estimate of 45.4 percent, based on Thomson Reuters StarMine.
Freedman said considering that the company beat 17dexjpky forecast for gross margins, investors may be optimistic that its second-quarter outlook could prove to be conservative.
The under armour shoes australia 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.