A Look at Under Armour’s 1Q17 Top Line Beat
Under Armour’s beats consensus revenue estimates in 1Q17
Under Armour (UAA) reported a 6.6% YoY (year-over-year) increase in 1Q17 sales to $1.1 billion, beating the consensus by $8 million. The company also maintained its full-year top line guidance of 11%–12% growth
“Our first quarter results were in line with our expectations and we’re off to a solid start in 2017,” said Under Armour chairman and CEO Kevin Plank.
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However, 1Q17 was Under Armour’s slowest-growth quarter since it went public in 2005. While the company’s international business grew a solid 52% during the quarter, North American sales fell 1%. By region, sales rose 55% in EMEA (Europe, the Middle East, and Africa), 60% in Asia-Pacific, and 30% in Latin America.
Wholesale revenue rose 4% YoY to $773 million, and direct-to-consumer sales rose 13% YoY to $302 million.
Apparel sales grew 7% YoY to $715 million, footwear sales were up 2% YoY to $270 million, and accessories revenue rose 12% to $89 million. For more details on the performance of Under Armour’s key categories, read the next part of this series.
ETF investors seeking to add exposure to UAA can consider the SPDR Consumer Discretionary Select Sector ETF (XLY), which invests 0.2% of its portfolio in the company.
How did competitors fare in the recent quarterly results?
Sportswear companies posted mixed results recently.
Apparel giant Nike (NKE), which reported quarterly results in late March, missed consensus forecasts. It continued to face increasing competition in its home market, North America. The company’s top line improved 5% YoY to $8.43 billion.
Lululemon Athletica (LULU), however, reported a top line beat during its last quarter. The company’s top line rose 12% YoY to $790 million.