Under Armour Inc’s (UA.N) quarterly sales jumped 30 percent because the company’s new under armour store 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 as much as 8.7 percent in morning trading on Thursday.
Under Armour’s quarterly sales have risen by no less than twenty percent over the past six years, improving the company replace Germany’s Adidas (ADSGn.DE) as the No. 2 sportswear maker in the usa this past year. Nike Inc (NKE.N) is definitely the market leader.
“The current market fears about the apparel slowdown were unfounded since they demonstrated another quarter of 20 % growth, and gross margins were superior to 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 from the first quarter ended March 31, as increasing numbers of customers bought its training and golf clothing. Apparel accounts for more than 60 % in the company’s total revenue.
Footwear sales jumped 64 percent to $264.2 million on strong demand for the company’s under armour sale, Curry One and Curry Two basketball shoes and Spieth’s newly-launched Drive One golf shoes.
Under Armour said it expected sales within the second quarter to cultivate within the “high 20s” percentage range, and gross margins to be little changed in contrast to a year ago.
Under Armour’s gross margin fell to 45.9 percent from 46.9 percent within the latest quarter, hurt by higher discounts as well as the strong dollar. However, margins still topped analysts’ estimate of 45.4 percent, as outlined by Thomson Reuters StarMine.
Freedman said considering that the company beat 17dexjpky forecast for gross margins, investors might be optimistic that its second-quarter outlook could show to be conservative.
The under armour shoes sydney raised its full-year sales forecast to around $5. billion from about $4.95 billion. Operating income for 2016 is now anticipated to be $503-$507 million, compared to its prior forecast of around $503 million.