Under Armour, Inc. (NYSE: UA)
Under Armour, Inc. (UA), a performance apparel and accessories company yesterday reported positive fourth quarter and full year 2015 financial results. Under armour also reported positive guidance numbers for 2016. Under Armour reported fourth quarter diluted earnings per share of $0.48 an increase of 19% and beat analyst expectations of $0.46. Full year diluted earnings per share increased 11% to $1.05. Under Armour reported fourth quarter net revenues of $1.17 billion a 31% increase and beat analyst expectations of $1.12 billion. Full year net revenues were $3.96 billion a 28% increase. Under Armour updated their 2016 net revenues outlook to $4.95 billion which would be a 25% increase over 2015. Under Armour also updated their operating income outlook for 2016 to $503 million which would be a 23% increase on 2015.
Under Armour, Inc. CEO’s Comments
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.” PR Newswire
UA Technical Analysis
UA gapped up in price yesterday to $79.50, up from the prior day’s close of $68.58, which is a 16% increase in price. Taking a look at the daily chart we can see that the last time UA traded above this price level was on January 6th when it traded at $79.87. As of late afternoon trading on Thursday UA is up over 22% at $83.75. Taking a closer look at the daily chart, before Thursday’s gap up in price UA stock has been on an overall decline dating back to October 12th when it traded at $103.35. UA has a float of 179.21 million shares and is trading over 4 times the normal daily trading volume. For trading purposes, I would like to see UA close above $80 and use that as a buy support level for a sustained rally moving forward.
Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The company offers its apparel in compression, fitted, and loose types to be worn in hot, cold, and in between the extremes. It offers various footwear products, including football, baseball, lacrosse, softball and soccer cleats, slides, performance training, running, basketball, and outdoor footwear. The company also provides accessories, which include headwear, bags, and gloves; digital fitness platform licenses and subscriptions, as well as digital advertising; and licenses its brands. It primarily offers its products under the UA Logo, UNDER ARMOUR, UA, ARMOUR, HEATGEAR, COLDGEAR, ALLSEASONGEAR, PROTECT THIS HOUSE, and I WILL trademarks, as well as ARMOUR39, ARMOURBITE, ARMOURLOFT, ARMOURSTORM, ARMOUR FLEECE, and ARMOUR BRA trademarks. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of brand and factory house stores, and Website. Under Armour, Inc. was founded in 1996 and is headquartered in Baltimore, Maryland. Yahoo Finance