UNDER ARMOUR REPORTS STRONG REVENUE GROWTH FOR 2016
Baltimore-based outdoor apparel maker and retailer Under Armour announced financial results for the fourth quarter and full year ended December 31, 2016.
For the full fiscal year, revenues increased 22 percent to $4.8 billion, including a 19 percent increase in wholesale revenues to $3.1 billion and a 27 percent increase in direct-to-consumer revenues which reached $1.5 billion. North American revenues grew 16 percent and international revenues grew 63 percent.Apparel revenues increased 15 percent to $3.2 billion led by growth in golf, basketball and training. Footwear revenues grew 50 percent to reach $1 billion driven by balanced growth across all categories with particular strength in running and basketball. Accessories revenues increased 17 percent to $407 million with strength in bags and headwear and Connected Fitness increased 51 percent to $80 million.
For the fourth quarter of 2016, revenues were up 12 percent to $1.3 billion, driven by a 5 percent increase in wholesale revenues to $742 million and a 23 percent increase in direct-to-consumer revenues to $518 million. North American revenues grew 6 percent, while international revenues, which represented 16 percent of total revenues in the quarter, were up 55 percent driven by significant growth in the United Kingdom, Germany, China and Australia. Meanwhile, apparel revenues increased 7 percent to $929 million including strength in golf and basketball. Footwear revenues increased 36 percent to $228 million driven by accelerated growth in running and basketball. Accessories revenues increased 7 percent to $104 million with strength in bags and headwear.
“We are incredibly proud that in 2016, we once again posted record revenue and earnings, however, numerous challenges and disruptions in North American retail tempered our fourth quarter results,” said Kevin Plank, Under Armour Chairman and CEO. “The strength of our brand, an unparalleled connection with our consumers and the continuation of investments in our fastest growing businesses — footwear, international and direct-to-consumer — give us great confidence in our ability to navigate the current retail environment, execute against our long-term growth strategy and create value to our shareholders.
Plank also painted a very positive picture of the coming year. “Looking forward, our successful track record of re-defining performance gives us great confidence that the opportunities for long-term growth at Under Armour have never been greater. The current environment represents an inflection point to maximize our unique strengths by staying on offense — investing smartly in innovation, deepening our brand connection with consumers and amplifying our focus on operational excellence — positioning Under Armour as a stronger company.”
Under Armour also reported that its longtime chief financial offer, Chip Molloy, has decided to leave the company due to personal reasons. Effective February 3, David Bergman, SVP Corporate Finance, and a seasoned member of Under Armour’s accounting and finance organization, will serve as acting CFO. Mr. Molloy will remain with the company in an advisory capacity to assist with the transition.
