Sports retailer Under Armour, Inc. has announced financial results for the first quarter ended March 31, 2016. Net revenues increased 30 percent in the first quarter of 2016 to $1.05 billion compared with net revenues of $805 million in the prior year’s period. Wholesale net revenues grew 28 percent year-over-year to $744 million compared to $579 million in the prior year’s period, while Direct-to-Consumer net revenues grew 33 percent year-over-year to $266 million compared to $200 million in the prior year’s period.
Operating income increased 26 percent in the first quarter of 2016 to $35 million compared with $28 million in the prior year’s period. Net income increased 63 percent in the first quarter of 2016 to $19 million compared with $12 million in the prior year’s period and diluted earnings per share for the first quarter of 2016 were $0.04 compared with $0.03 per share in the prior year’s period. Conversely gross margin for the first quarter of 2016 was 45.9 percent compared with 46.9 percent in the prior year’s period.
Within product categories, apparel net revenues increased 20 percent to $667 million compared with $555 million in the same period of the prior year, led by growth in training and golf. Footwear net revenues increased 64 percent to $264 million from $161 million in the prior year’s period, primarily reflecting the ongoing success of the Curry signature basketball line and expanded running offerings. Accessories net revenues increased 26 percent to $80 million from $63 million in the prior year’s period, driven primarily by growth in headwear and bags.
“The strong results posted this quarter truly demonstrate the balanced growth of our brand across product categories, channels and geographies,” said Kevin Plank, chairman and CEO of Under Armour, Inc., stated “It also showcases our heightened focus on providing better service across our distribution channels, ensuring that our consumer consistently finds the newest, most premium product from us wherever they shop. In footwear, this includes the remarkable success of the Stephen Curry signature basketball line, as well as the exciting launches of our first smart running shoe and our new line of Jordan Spieth inspired golf shoes. Combined with the introductions of premium apparel technologies like Microthread and CoolSwitch, we will continue to drive elevated innovation and excitement to the athlete throughout the remainder of 2016.”