Under Armour Inc’s (UA.N) quarterly sales jumped 30 percent as being the company’s new under armour store by NBA star Stephen Curry and golfer Jordan Spieth were a big hit with customers.
Shares of the company, that also 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 over the past six years, improving the company replace Germany’s Adidas (ADSGn.DE) as being the No. 2 sportswear maker in the states this past year. Nike Inc (NKE.N) will be the market leader.
“The current market fears concerning 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 % to $666.6 million within the first quarter ended March 31, as increasing numbers of customers bought its training and golf clothing. Apparel accounts for more than 60 percent of the company’s total revenue.
Footwear sales jumped 64 percent to $264.2 million on strong interest in the company’s under armour outlet australia, Curry One and Curry Two basketball shoes and Spieth’s newly-launched Drive One golf shoes.
Under Armour said it expected sales in the second quarter to cultivate within the “high 20s” percentage range, and gross margins to be little changed compared with last year.
Under Armour’s gross margin fell to 45.9 percent from 46.9 percent in the latest quarter, hurt by higher discounts as well as the strong dollar. However, margins still topped analysts’ estimate of 45.4 percent, in accordance with Thomson Reuters StarMine.
Freedman said since the company beat 17dexjpky forecast for gross margins, investors could be optimistic that its second-quarter outlook could turn out 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 currently expected to be $503-$507 million, in comparison with its prior forecast of about $503 million.