Retail

Under Armour Revenue Up 12 Percent In Q4

Sportswear designer and retailer Under Armour recently released its Q4 earnings report for the fiscal quarter ending Dec. 31, which showed that direct-to-consumer and international sales were a primary source of growth for the company.

Revenues were up 12 percent year over year to $1.31 billion, though missing analyst expectations for the quarter by $100 million, as noted by Seeking Alpha. Under Armour’s revenue growth was driven by a 23 percent increase in direct-to-consumer revenues, hitting $518 million in Q4. Wholesale revenues were up 5 percent to $742 million.

Revenue in North America, comprising 84 percent of the total, was up 6 percent. Significant growth in the U.K., Germany, China and Australia brought Under Armour’s international revenue for the quarter up 55 percent. Split by division, apparel revenues for Under Armour increased 7 percent to $929 million in Q4. Footwear revenues also grew, up 36 percent to $228 million, while accessories revenues increased 7 percent to $104 million.

“Looking forward, our successful track record of redefining performance gives us great confidence that the opportunities for long-term growth at Under Armour have never been greater,” said Kevin Plank, Under Armour chairman and CEO. “The current environment represents an inflection point to maximize our unique strengths by staying on offense — investing smartly in innovation, deepening our brand connection with consumers and amplifying our focus on operational excellence — positioning Under Armour as a stronger company.”

Under Armour reportedly expects its net revenues to grow 11 to 12 percent to reach nearly $5.4 billion by the end of 2017, largely driven by further growth in direct-to-consumer and international sales.

The retailer anticipates that its Connected Fitness platform, with its 200 million users, will also continue to contribute to sales. Connected Fitness revenues grew 8 percent to $18.3 million in Q4, up from $17.0 million in Q3. The platform’s revenues grew 51 percent year over year to $80.5 million from $53.4 million in 2015.

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