Under Armour Inc’s (UA.N) quarterly sales jumped 30 percent as being the company’s new under armour shoes australia by NBA star Stephen Curry and golfer Jordan Spieth were a major hit with customers.
Shares from the company, that raised its full-year 2016 sales forecast, rose just as much as 8.7 percent in morning trading on Thursday.
Under Armour’s quarterly sales have risen by a minimum of 20 percent over the past six years, helping the company replace Germany’s Adidas (ADSGn.DE) because the No. 2 sportswear maker in the states this past year. Nike Inc (NKE.N) may be the market leader.
“The current market fears about the apparel slowdown were unfounded because they demonstrated another quarter of twenty percent growth, and gross margins were superior to we expected,” BB&T Capital Markets analyst Corinna Freedman said.
Under Armour’s sales of sports and outdoor apparel rose twenty percent to $666.6 million within the first quarter ended March 31, as more customers bought its training and golf clothing. Apparel accounts for more than 60 % from the company’s total revenue.
Footwear sales jumped 64 percent to $264.2 million on strong requirement for the company’s under armour online, Curry One and Curry Two basketball shoes and Spieth’s newly-launched Drive One golf shoes.
Under Armour stated it expected sales from the second quarter to cultivate inside the “high 20s” percentage range, and gross margins being little changed in comparison with a year ago.
Under Armour’s gross margin fell to 45.9 percent from 46.9 percent inside the latest quarter, hurt by higher discounts along with the strong dollar. However, margins still topped analysts’ estimate of 45.4 percent, based on Thomson Reuters StarMine.
Freedman said ever since the company beat 17dexjpky forecast for gross margins, investors might be optimistic that its second-quarter outlook could end up being conservative.
The under armour shoes raised its full-year sales forecast to around $5. billion from about $4.95 billion. Operating income for 2016 is currently supposed to be $503-$507 million, compared to its prior forecast of about $503 million.