Dive Brief:
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Under Armour Thursday reported Q3 sales surpassing $1 billion, its first in company history, beating expectations and maintaining its recent track record of 22 straight quarters with revenue increases of 20% and more.
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The company said that its expanding roster of high-profile athlete endorsements and footwear sales helped boost sales past a billion dollars for the first time.
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Revenue rose 28% to $1.2 billion, past the $938 million in revenues in Q3 last year. Earnings increased 13% to $100 million from $89 million, or $0.45 cents per share from $0.41 per share. But shares fell more than 5% on worries over its tighter margins and high inventory levels.
Dive Insight:
Under Armour’s recent pivot to concentrate on footwear sales looks to be a savvy one, considering its strong growth in the category. The company’s footwear sales rose 61% to $196 million, helped by the expansion of running, basketball, and training shoes. The company also expects more footwear love for NBA star Stephen Curry's second signature basketball shoe, the "Curry Two.” And the company is boosting its work to improve and increase its offerings for women’s shoes.
Footwear remains a small slice of Under Armour’s sales, so it holds loads of potential for the retailer.
"This demonstrates miles of runway in front of us for growth in this one category alone," Under Armour chairman and CEO Kevin Plank said during a Thursday morning conference call with analysts.
