Under Armour, Inc’s reported strong full year and fourth quarter financial results. Diluted earnings per share for 2015 increased 11% to $1.05 compared with $0.95 per share in the prior year, inclusive of a $0.10 dilutive impact of the Connected Fitness acquisitions, while diluted earnings per share for the fourth quarter of 2015 were $0.48 compared with $0.40 per share in the prior year’s period. The Company now expects 2016 net revenues of approximately $4.95 billion, representing growth of 25% over 2015 and 2016 operating income of approximately $503 million.
For the full year 2015, net revenues increased 28% to $3.96 billion compared with $3.08 billion in the prior year and compared with the Company’s prior outlook of $3.91 billion. Operating income grew 15% to $409 million in 2015 compared with $354 million in the prior year and compared with the Company’s prior outlook of $408 million.
Net revenues increased 31% in the fourth quarter of 2015, to $1.17 billion compared with net revenues of $895 million in the prior year’s period. In addition, operating income increased 21% in the fourth quarter of 2015 to $178 million compared with $146 million in the prior year’s period, while net income increased 21% in the fourth quarter of 2015 to $106 million compared with $88 million in the prior year’s period.
Fourth quarter apparel net revenues increased 22% to $865 million compared with $708 million in the same period of the prior year, led by growth in training, running, golf and basketball. Fourth quarter footwear net revenues increased 95% to $167 million from $86 million in the prior year’s period, primarily reflecting the success of the Curry signature basketball line and expanded running offerings. Fourth quarter accessories net revenues increased 23% to $97 million from $79 million in the prior year’s period, driven primarily by new introductions across the bags category. Direct-to-Consumer net revenues, which represented 36% of total net revenues for the fourth quarter, grew 25% year-over-year. International net revenues, which represented 12% of total net revenues for the fourth quarter, grew 70% year-over-year, or 85% on a currency neutral basis.
Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, “Our core business remains incredibly strong and our 31% net revenue growth in the fourth quarter is clear evidence of the continued expansion in the breadth and depth of our brand. We delivered our 25th consecutive quarter of more than 20% net revenues growth in our largest product category of apparel. Moreover, we continued to diversify our product offering and geographic reach, driving significant market share gains in key strategic areas like basketball footwear, while better meeting the needs of the global athlete with investments in our global Brand House stores and e-commerce sites helping drive 70% growth in international. With our continued investments across people, systems, and digital, we are confident in our ability to build upon this tremendous momentum, reinforcing our belief that we are just getting started in becoming the next great global brand.”
In after hours and early Thursday morning trading, Under Armour stock jumped over 17% and was trading at 80.39 at 9:30 a.m.