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Under Armour reports 22 percent growth in Q3 revenue

By Prachi Singh

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Business

Under Armour net revenues for the third quarter ended September 30, 2016 increased 22 percent to 1.47 billion dollars compared with 1.20 billion dollars in the prior year's period. On a currency neutral basis, net revenues increased 23 percent compared with the prior year's period. Operating income increased 16 percent to 199 million dollars and net income increased 28 percent to 128 million dollars with diluted earnings per share at 0.29 dollar compared with 0.23 dollar in the prior year's period.

Commenting on the company’s results, Kevin Plank, Chairman and CEO of Under Armour, said, "This marks our 26th consecutive quarter of 20 percent revenue growth demonstrating the strength of the Under Armour Brand. From the Olympic Games in Rio to the launch of Under Armour Sportswear at New York Fashion Week, the Under Armour Brand continues to extend its reach to new consumers while remaining authentic and rooted in sport."

Under Armour posts positive Q3

Wholesale net revenues grew 19 percent to 1.01 billion dollars compared to 850 million dollars in the prior year's period, while direct-to-consumer net revenues grew 29 percent to 408 million dollars compared to 316 million dollars in the prior year's period. North America net revenues were up 16 percent and international net revenues, which represented 15 percent of total net revenues for the third quarter, grew 74 percent or 80 percent on a currency neutral basis.

Within product categories, apparel net revenues increased 18 percent to 1.02 billion dollars compared with 866 million dollars in the same period of the prior year, led by growth in men's training, women's training, golf and team sports. Footwear net revenues increased 42 percent to 279 million dollars, driven by strong growth in running and basketball. Accessories net revenues increased 18 percent to 122 million dollars driven by growth in bags and headwear.

Forecasts 24 percent revenue growth in 2016

The company continues to expect 2016 net revenues of approximately 4.925 billion dollars, representing growth of 24 percent over 2015, and operating income of 440 million dollars to 445 million dollars, representing growth of 8 percent to 9 percent.

Picture:Under Armour

Under Armour