Under Armour today announced Q4 earnings were up 20% due to an "increase in footwear sales," and the results sent shares in the company "surging after quieting investor fears about a slowdown amid warm weather around the holiday season," according to Ryan Sharrow of the BALTIMORE BUSINESS JOURNAL. UA posted a profit of $105.6M, up from $87.7M a year ago. Revenue in the quarter reached $1.17B, a 31% jump from $895M "in the year-ago period." Footwear revenue in the quarter was up 95% to $167M, primarily due to the "success of the Stephen Curry signature basketball line and expanded running offerings." For the full FY '15, revenue increased 26% to $3.96B, up from $3.08B in '14. Net income rose almost 12% to $232.6M (BIZJOURNALS.com, 1/28). In Baltimore, Lorraine Mirabella reports demand for "gear for training, running, golf and basketball spurred apparel sales," which were up 22%, to $865M from $708M "in the same period a year earlier." It marked the "25th consecutive quarter of more than 20 percent sales growth in apparel, by far the biggest product category for the athletic apparel maker" (BALTIMORESUN.com, 1/28). At presstime, shares of UA were trading at $82.11 per share, up 19.7% from the close of business yesterday (THE DAILY).
GOING THROUGH A GROWTH SPURT: THE STREET's Brian Sozzi reported UA "will open a whopping 200 stores" in '16. UA Founder, Chair & CEO Kevin Plank did not disclose what "mix of formats those new 200 stores would comprise." UA "currently operates 144 owned factory stores," as well as 29 stores "known as 'brand houses, which tend to be large in size and feature the very best collections." The company also "sells a more limited line of offerings at about 127 owned shops found within the stores of key partners." Dick's Sporting Goods is planning to introduce a new UA shop design "sometime in 2016, but the new format has not yet launched." UA is also "likely to focus on China with many of its new store openings" in '16. The company's retail store expansion "should help it to alleviate the top line pressure stemming from lost sales at one of its biggest partners, which is continuing to close sites in the U.S. Department store retailer Macy's will close 36 locations by early spring" (THESTREET.com, 1/26).
SHOOTING FOR THE GREEN: UA VP of Sports Marketing & Sponsorships Ryan Kuehl appeared on Golf Channel this morning from the PGA Merchandise Show and talked about the company's expansion into golf. He said, “Our biggest thing from a tour perspective (is) we signed Alison Lee, and Alison will lead our new women’s line that we’re launching this spring. So we’re real excited about her. She’s had a great run already on tour, and she’ll be our first LPGA tour player, and hopefully we’ll get the women’s line up to where our men’s line is” ("Morning Drive," Golf Channel, 1/28). UA also counts Jordan Spieth and Hunter Mahan, among others, as endorsers (THE DAILY).
