Under Armour Inc’s (UA.N) quarterly sales jumped 30 percent as the company’s new under armour outlet by NBA star Stephen Curry and golfer Jordan Spieth were a big hit with customers.
Shares of your company, which 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 at the very least 20 % within the last six years, improving the company replace Germany’s Adidas (ADSGn.DE) since the No. 2 sportswear maker in the United States last year. Nike Inc (NKE.N) may be the market leader.
“The current market fears concerning the apparel slowdown were unfounded because 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 percent to $666.6 million within the first quarter ended March 31, as more 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 demand 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 inside the second quarter to increase within the “high 20s” percentage range, and gross margins being little changed compared with a year ago.
Under Armour’s gross margin fell to 45.9 percent from 46.9 percent in the latest quarter, hurt by higher discounts and the strong dollar. However, margins still topped analysts’ estimate of 45.4 percent, in accordance with Thomson Reuters StarMine.
Freedman said considering that the company beat 17dexjpky forecast for gross margins, investors could possibly be optimistic that its second-quarter outlook could prove 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 now likely to be $503-$507 million, compared to its prior forecast of approximately $503 million.