Under Armour announced financial results for the second quarter ended June 30, 2016. Net revenues increased 28% compared with net revenues of $784 million in the prior year's period.
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Operating income decreased 39% in the second quarter of 2016 to $19 million, inclusive of a $23 million impairment related to the liquidation of Sports Authority, compared with $32 million in the prior year's period.
Net income decreased 58% in the second quarter of 2016 to $6 million compared with $15 million in the prior year's period.
For the second quarter of 2016 the company realized diluted loss per share of $0.12 for Class A and B shares and diluted earnings per share of $0.15 for Class C shares, reflecting the impact of a $59 million stock dividend paid to Class C shareholders during the quarter.
If the Class C stock dividend had not been paid, non-GAAP diluted earnings per share for all classes for the second quarter would have been $0.01 per share, inclusive of $0.03 impact from the impairment related to the Sports Authority liquidation. This compares with diluted earnings per share of $0.03 for all classes in the prior year's period.
During the second quarter, wholesale net revenues grew 27% year-over-year to $635 million compared to $501 million in the prior year's period, while Direct-to-Consumer net revenues grew 28% year-over-year to $321 million compared to $251 million in the prior year's period.
North America net revenues for the second quarter grew 22% year-over-year. International net revenues, which represented 15% of total net revenues for the second quarter, grew 68% year-over-year, or 72% on a currency neutral basis.
Within product categories, apparel net revenues increased 19% to $613 million compared with $515 million in the same period of the prior year, led by growth in men's training, women's training and golf.
Footwear net revenues increased 58% to $243 million from $154 million in the prior year's period, primarily reflecting the continued success of the basketball category led by the Curry signature basketball line as well as growth in running and cleated categories.
Accessories net revenues increased 21% to $101 million from $83 million in the prior year's period, driven primarily by growth in bags and headwear. ■