Under Armour Inc’s (UA.N) quarterly sales jumped 30 percent since the company’s new under armour store by NBA star Stephen Curry and golfer Jordan Spieth were a huge hit with customers.
Shares of your company, that raised its full-year 2016 sales forecast, rose up to 8.7 percent in morning trading on Thursday.
Under Armour’s quarterly sales have risen by no less than 20 percent in the past six years, helping the company replace Germany’s Adidas (ADSGn.DE) because the No. 2 sportswear maker in the United States this past year. Nike Inc (NKE.N) may be the market leader.
“The current market fears in regards to the apparel slowdown were unfounded as they demonstrated another quarter of 20 percent 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 within the first quarter ended March 31, as increasing numbers of customers bought its training and golf clothing. Apparel accounts in excess of 60 % of 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 stated it expected sales inside the second quarter to develop in the “high 20s” percentage range, and gross margins to get little changed in comparison with just last year.
Under Armour’s gross margin fell to 45.9 percent from 46.9 percent from 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 ever since the company beat 17dexjpky forecast for gross margins, investors could possibly be optimistic that its second-quarter outlook could show 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 has become anticipated to be $503-$507 million, compared with its prior forecast around $503 million.