They not only recorded growth in all segments, but are also expanding into new markets.
Last weekend (24-26 July) Under Armour sponsored the South African Stand Up Paddleboard (SUP) Wave Riding Championship in Cape Town and the brand was also the clothing sponsor of the South African team competing in the world championship earlier this year.
Under Armour has also made inroads in the fishing market and won the best new apparel award at this year’s major US trade fishing show (ICAST).
The brand is now also the official performance partner of USA Boxing. Under the new partnership the brand will supply the boxers with head-to-toe training and competition apparel and footwear until 2021.
Their custom collection of boxing gear features Armourvent technology, which has been thoroughly tested for high intensity action that maximises effectiveness in the ring. The new UA ClutchFit Title Hunter boxing boot gives boxers a flexible feel with locked-in support that enables every movement.
Under Armour’s net revenues increased 29% to $784-m for the second quarter. Although its net income dropped 17% to $15-m due to foreign exchange losses and higher expenses, it still surpassed analysts’ estimates.
All of the brands’ segments experienced growth, with footwear growing the most (up by 40% to $154-m). This is due to continued product expansion in running and excitement created by the Stephen Curry Signature product. Accessories grew by 39% to $83-m with the introduction of new bags, and apparel grew by 23% to $515-m with the expansion of baselayer and training products.
The direct-to-consumer net revenues increased 33% year-over-year while international net revenues increased 93% year-over-year. Inventory also increased 26% to $837-m whereas cash and cash equivalents dropped 43% to $171-m, and the brand’s total debt went up $519-m compared to the same period last year.
The brand has updated its 2015 outlook and expects net revenues to grow 25% to $3.84-bn for the 2014 fiscal year and an operating income growth of 14-15% to $405-m.
“The on-going strength of our brand and execution of our business plan give us confidence in raising our full year top line outlook,” says Brad Dickerson, COO/CFO of Under Armour, Inc. “The confluence of our sports marketing success stories has provided a unique opportunity to drive investment toward areas that we see are key to long-term sustainable growth and we plan to take advantage of this dynamic in the back half of 2015. At the same time, we are increasing our focus on developing sustainable business process improvements and better connecting the components of our value chain to more fully capitalize on our brand’s momentum each season going forward.”