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By The Numbers: Outperformer Under Armour’s Prospects

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About Under Armour

Under Armour (UA) is the number two sportswear and performance wear company in the US, second only to market leader NIKE (NKE). Formed in 1996, UA is a comparatively new entrant to the market and went public in November 2006. Under Armour is an S&P 500 Index component and is included in the portfolio holdings of ETFs tracking the Index, like the iShares Core S&P 500 ETF (IVV) (0.06% weight).

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Operational and geographical reach

UA derives over 90% of its revenues from North America, making it the most important region for the company. More than 75% of Under Armour’s revenues come from the sale of apparel products. These are manufactured using its trademark moisture-wicking fabrics.

Under Armour’s products are categorized as consumer discretionary items. ETFs like the SPDR Consumer Discretionary Select Sector ETF (XLY) and the First Trust Consumer Discretionary AlphaDEX ETF (FXD) provide exposure to this sector. Under Armour is part of both XLY (0.51% weight) and FXD (0.53% weight).

For a detailed overview of the company and its operations, read High-Performance Winner? Your Must-Know Guide To Under Armour.

Returns

Since its initial public offering (or IPO), the company has experienced exponential growth, outpacing its peers by a wide margin. UA’s stock price is up by over 450% since January 1, 2007. This surpasses the returns on mature companies in its peer group like NIKE’s (NKE) 288% and Adidas’s (ADDYY) 36% over the same period.

Earnings release

Under Armour (UA) is expected to announce fourth quarter and full year results for 2014 on February 4, 2015. The company has been a strong performer in the past and has beaten consensus Wall Street earnings estimates for 21 straight quarters.

This series will provide a backgrounder on the company’s results for the first three quarters of 2014. You’ll also read about the outlook for the fourth quarter and the key factors driving its results. We’ll also be covering the review of fourth quarter and full year earnings once they release on February 4, 2015.

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