Under Armour's profit fell 13% during Q1 '15 "as the brand invested in two fitness technology companies," but sales were up 25%, "beating analysts' expectations," according to Lorraine Mirabella of the Baltimore SUN. Net income decreased to $12M from $14M. However, sales jumped to $805M compared with revenue of $642M in Q1 '14. Analysts' estimates of Q1 sales were $801M. UA Founder, Chair & CEO Kevin Plank said that this marks the "20th straight quarter of sales growth" of more than 20% (BALTIMORESUN.com, 4/21). In Baltimore, Ryan Sharrow reports Q1 apparel revenue was up 21% to $555M, an increase from $459M in '14. Footwear growth, which has been "under a watchful eye of investors," was up 41% to $161M. UA during the quarter introduced Warriors G Stephen Curry's new shoe "and an expanded line of its SpeedForm running shoe." Meanwhile, int'l revenue increased 74% year-over-year and accounted for 12% of total revenue in the period (BIZJOURNALS.com, 4/21). CNBC’s Andrew Ross Sorkin said it is “amazing” this is the company’s 20th straight quarter "above 20% net revenue growth.” Sorkin also noted UA endorser Jordan Spieth won The Masters earlier this month and said the company is “on a straight-up trajectory.” But CNBC’s Becky Quick noted shares of UA were down 4.5% “because the guidance that it’s talking about -- while it is raising its own guidance, it’s not quite to where the street had been anticipating.” Quick: “Analysts got ahead of themselves, obviously the stock got ahead of itself” ("Squawk Box," CNBC, 4/21). At presstime, shares of UA were trading at $83.88, down from $87.76 at the close of business yesterday (THE DAILY).
KEEPING UP WITH THE JONESES: In Portland, Matthew Kish noted UA yesterday “confirmed it plans to grow its footwear and innovation operations” in the city. The confirmation followed reports of the “sale of a nearly 70,000-square-foot former YMCA immediately south of downtown.” Sources said that UA “plans to sign a long-term lease for the building.” Kish noted UA’s “growth in Portland coincides with the growth of its footwear division.” UA’s “increased presence in Portland further cements the city’s reputation as the center of gravity for the sportswear industry,” as both Nike and adidas have HQ in the area (BIZJOURNALS.com, 4/20).
