Under Armour announced financial results for the fourth quarter ended December 31, 2015.
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Net revenues increased 31% in the fourth quarter of 2015 to $1.17 billion compared with net revenues of $895 million in the prior year's period. On a currency neutral basis, net revenues increased 33% compared with the prior year's period.
Operating income increased 21% to $178 million compared with $146 million in the prior year's period.
Net income increased 21% in the fourth quarter of 2015 to $106 million compared with $88 million in the prior year's period and diluted earnings per share for the fourth quarter of 2015 were $0.48 compared with $0.40 per share in the prior year's period.
Fourth quarter apparel net revenues increased 22% to $865 million compared with $708 million in the same period of the prior year, led by growth in training, running, golf and basketball.
Fourth quarter footwear net revenues increased 95% to $167 million from $86 million in the prior year's period, primarily reflecting the success of the Curry signature basketball line and expanded running offerings.
Fourth quarter accessories net revenues increased 23% to $97 million from $79 million in the prior year's period, driven primarily by new introductions across the bags category. Direct-to-Consumer net revenues, which represented 36% of total net revenues for the fourth quarter, grew 25% year-over-year.
International net revenues, which represented 12% of total net revenues for the fourth quarter, grew 70% year-over-year, or 85% on a currency neutral basis.
For the full year 2015, net revenues increased 28% to $3.96 billion compared with $3.08 billion in the prior year and compared with the company's prior outlook of $3.91 billion.
Operating income grew 15% to $409 million in 2015 compared with $354 million in the prior year and compared with the company's prior outlook of $408 million.
Total costs of the company's two Connected Fitness acquisitions completed in the first quarter, comprised of operating losses, one-time transactions costs, and non-cash amortization charges of the intangible assets generated from the acquisitions, were $23 million for 2015.
Diluted earnings per share for 2015 increased 11% to $1.05 compared with $0.95 per share in the prior year, inclusive of a $0.10 dilutive impact of the Connected Fitness acquisitions.
Apparel net revenues increased 22% to $2.80 billion compared with $2.29 billion in the prior year, led by growth in golf, running and team sports. Footwear net revenues increased 57% to $678 million during 2015 compared to $431 million in 2014, reflecting expanded offerings in running and basketball.
Accessories net revenues increased 26% to $347 million during 2015 compared to $275 million in 2014. Direct-to-Consumer net revenues, which represented 30% of total net revenues for 2015, grew 27% over the prior year.
International net revenues, which represented 11% of total net revenues for 2015, grew 69% year-over-year, or 84% on a currency neutral basis.
Gross margin for 2015 was 48.1% compared with 49.0% in 2014, primarily reflecting a negative 70 basis point impact from the continued strength of the U.S. Dollar.
Selling, general and administrative expenses as a percentage of net revenues were 37.8% for 2015 compared with 37.5% for 2014, primarily reflecting broad-based investments to support global growth initiatives. ■