Under Armour Shows Life Signs

As we you explained in our article from the February 2^nd, 2016, Under Armour Inc. (UA) develops, markets and distributes athletic performance gear to men, women, and children in the global market. After a notable week of shoes sales, beating out competitors Nike and Skechers, UA stock had made a significant jump. Earnings reports were expected to show more growth in the 4th quarter of 2015.

The company reported increases in revenues and earning, shares soared

During the 14-days period, UA went up more than 24% according to our prediction of January 18th, 2016. The reason for this amazing performance is primarily an excellent report that the company showed at the end of January. Under Armour shares rose more than 22% on January 28th, 2016 reaching a market cap of $18.1 billion.

Under Armour reported fiscal 4Q15 net revenues of $1,170.7 million, a rise of 30.8% compared to net revenues of $895.2 million in fiscal 4Q14. The company’s cost of goods sold as a percentage of net revenue rose by 3.8%, and its gross profit margin fell by 3.8% in fiscal 4Q15 compared to fiscal 4Q14.

Its net income and EPS (earnings per share) rose to $105.6 million and $0.48, respectively, in fiscal 4Q15, compared to $87.7 million and $0.40, respectively, in fiscal 4Q14.

In fiscal 2015, UA reported net revenues of $3,963.3 million, a rise of 28.5% year-over-year. Its factory house and brand house door counts rose to 161 and 30, respectively. Also, the company’s net income and EPS rose to $232.6 million and $1.05, respectively, in fiscal 2015, compared to $208.0 million and $0.95, respectively, in fiscal 2014.

In the week ended Jan. 23, Under Armour’s athletic shoe sales climbed 66% from a year earlier, according to a report by Deutsche Bank analyst Dave Weiner, while sector leader Nike saw athletic shoe sales rise just 1.5% from a year earlier last week and Adidas athletic shoe sales, including the Reebok brand, rose 5.1% during the same period. Total athletic footwear sales turned negative, showing a 2.5% decline from a year earlier last week.