Under Armour is becoming the team to beat. On Thursday the company announced second quarter earnings ending June 30, revealing that revenue increased 34.1% to $609.7 million from $454.4 million during the period a year prior.
Overall, the results surpassed analyst estimates, which pegged the company to see $541.7 million in total revenue for the quarter, however, net profits were stagnant at $17.7 million–just a 0.7% uptick from $17.6 million a year ago.
The company expects the momentum to continue, and increased both its revenue and operating income outlook for 2014. Under Armour is now anticipating as much as a 29 percent increase in full year revenue over last year to $2.9 billion, compared with its original forecast of a 25 percent jump.
Additionally, Under Armour is looking beyond its potential in the U.S. by expanding its international reach with new partnerships in Brazil, and working with distributors to open its first stores in Panama, the Philippines and Singapore. The strategic expansion is expected to grow international revenues, which represented 8 percent of total net revenues for the second quarter–a notable 80 percent year-over-year increase.
However, like its predecessors Nike and Adidas, the performance rookie is banking on footwear to be the segment that kicks its momentum into full gear. Under Armour reported that footwear revenues climbed 34 percent to $109.5 million, accounting for 19 percent of second-quarter sales–or a total of $223 million for the first half of the year. Last year the brand’s footwear brought in $299 million.
In a company statement, Kevin Plank, Under Armour chairman and CEO, said, “While we continued to add more dimension to our largest growth driver in apparel, we were particularly encouraged by the brand response we are seeing in both our footwear and international businesses.” He added, “From our latest pinnacle football cleat, the Highlight ClutchFit, to the successful SpeedForm running initiative, our footwear is clearly resonating with consumers and we are well positioned to expand these platforms in the seasons ahead.”
Under Armour is also gearing up for its first global campaign dedicated to women with a television ad featuring Misty Copeland, a soloist with the American Ballet Theater, and a break from Under Armour’s typically masculine image. On a conference call with analysts, Plank said women’s can be as big as, if not bigger, than men’s. The company’s women’s product saw revenues grow 34.1% in the second quarter, and it is expected to grow beyond the $2.33 billion in revenue it registered all of last year.