Strong third quarter results, driven by new product introductions, have led Under Armour to raise its outlook for the year. On Thursday, the athletic apparel and footwear company said it now expects revenue this year to reach $3.03 billion instead of its prior forecast of $2.98-$3 billion.
Expanded apparel offerings across training, golf and outdoor channels resulted in third quarter apparel net revenues of $705 million, a 26 percent increase from last third quarter’s $705 million. Meanwhile, footwear, which included new basketball and running introductions, grew with net revenues increasing 50 percent to $122 million from $81 million the prior year’s period. The company also did well with an expanded range of headwear, bags and gloves, posting $85 million in accessory revenue, up from $64 million one year ago.
On the global front, Under Armour saw its largest growth opportunity. While international sales account for just 9 percent of the company’s total net revenue, Under Armour said international revenue skyrocketed 94 percent year-over-year.
Chairman and CEO of Under Armour Kevin Plank said, “Our strong third quarter results demonstrate the power of the UA brand. The momentum and growing confidence we outlined last quarter in footwear and international were on full display in the third quarter with growth rates accelerating to 50 percent and 94 percent, respectively.”
Plank noted that debut of local e-commerce sites in the United Kingdom, Germany, and France, coupled with the optimization of all global sites for mobile, is helping the company stay ahead of where its consumers are going.
Looking forward, Plank said, “Our plans of crossing $3 billion in net revenues and achieving 30 percent growth this year represent significant milestones for the brand, but we believe we are just getting started. We are delivering consistent top line results while making the right investments to support both the near- and long-term opportunities of the Brand. This includes investments to build world-class design and innovation capabilities for all of our products, accelerate our international footprint, and expand our 30 million users under our Connected Fitness platform.”
He added, “We believe this balanced approach will continue to drive our global ambitions and long-term value for our shareholders. We are proud of what we have built and continue to see ourselves as a much larger brand than the $3 billion in revenues we are projecting for 2014.”