Under Armour Inc. (NYSE: UA) again showed strong growth in revenue and profit in its latest quarter as Golden State Warrior player Stephen Curry’s signature basketball shoes boost the footwear business.
The Baltimore-based company said the profit was $19.2 million, or 4 cents a share, in the quarter ended in March, compared with $11.7 million, or three cents a share, a year earlier. The result beat analysts’ estimate. Analysts surveyed by Bloomberg had projected earnings of 2 cents on average.
Revenue in the first-quarter jumped 30 percent to $1.05 billion, which also topped analysts’ estimate of $1.04 billion.
The strong growth in the first-quarter is driven by strong Footwear sales. The footwear sales jumped 64 percent to $264 million from the same quarter a year earlier. The company has taken advantage of the success of its endorsed athletes Stephen Curry, who is the reigning Most Valuable Player and lead Golden State Warrior to won 73 games in a season, breaking Chicago Bulls’ record of 72 wins. Chief Executive Kevin Plank keep citing the “remarkable success” of the Stephen Curry basketball line in the earnings call.
“Stephen’s phenomenal season has brought unprecedented attention to our overall footwear business,” Plank said. Curry “is driving both expansion with key mall partners and credibility with the hardcore basketball kid.”
Growth is also strong in other units. Apparel sales increased 20 percent to $667 million, Accessories sales increased 26 percent to $80 million
Sales overseas also increased at a rapid peace. The company’s overseas sales grew 56 percent last quarter. The revenue almost triples in China. Curry is getting more fans in China after Kobe Bryant retired, the most popular NBA star in China. The company plans to release a new signature shoe on July 1 for $135, a $5 bump from the current version during the NBA playoffs.
Thanks to the strong performance in the first-quarter, the company boosted its annual revenue forecast to $5 billion, up from previously projection of $4.95 billion.
UA share jumped 7.44 percent to $47.21 at 11:23 A.M in New York.