Under Armour’s 4Q15 sales
Under Armour’s (UA) sales grew by 30.8% in 4Q15 to nearly $1.2 billion, while the company’s 2015 sales rose by 28.5% to almost $4 billion. The company beat its own guidance of $3.9 billion, which it provided with its 3Q15 earnings release in October. Under Armour’s sales of $1.17 billion in 4Q15 also beat the consensus Wall Street analyst estimate of ~$1.12 billion by 4.7%.
Under Armour’s performance received a big boost from the success of its Curry Two line of basketball footwear, named after the 2014–15 NBA Most Valuable Player, Stephen Curry. The company’s footwear revenue nearly doubled in 4Q15, rising 94.5% year-over-year to ~$167 million. The Curry Two launch and the company’s footwear sales also got a boost from the SpeedForm line of running footwear.
Footwear is a relatively new category for Under Armour. The company first entered the business a few years ago and has been introducing new footwear models and entering new sports categories each year in a phased manner.
Footwear category share of sales
The outperformance in the footwear category has also raised the sales (VCR) contribution from footwear to Under Armour’s overall revenue base, which has been primarily in apparel. Footwear sales accounted for 17.1% of the company’s total sales in 2015, up from about 12% in 2010.
By comparison, Nike (NKE) derived nearly 60% of its sales, or $18.3 billion, from footwear in fiscal 2015, which ended for the company on May 31, 2015. In 2014, adidas AG (ADDYY) derived ~46%, or $7.2 billion, of its total sales from footwear products. Footwear player Skechers USA (SKX) is due to declare 4Q15 results later this month.
In 2016, Under Armour plans to launch its first smart shoe, the Under Armour SpeedForm Gemini 2 Record Equipped. It’s also looking at launching newer versions of the Curry signature line at premium price points and expects to launch new models in running footwear in its SpeedForm line, according to the company’s CEO, Kevin Plank.
Continue to the next part for a look at Under Armour’s 2015 apparel performance.