Shoes sales propel profits at Under Armour

Profit at Under Armour increased nicely in the fourth quarter, and the sports clothing company said growing shoe sales led the company to increase its outlook.

The company said fourth quarter net revenues increased 31% to $1.17 billion compared with net revenues of $895 million in the prior year period. Net income increased 21% in the fourth quarter of 2015 to $106 million compared with $88 million in the prior year period and diluted earnings per share for the fourth quarter of 2015 were 48 cents compared with 40 cents per share in the prior year period.A key to success was the company’s surging footwear sales, which jumped 95% to $167 million, driven by an expanded running shoe line and the success of the Stephen Curry signature basketball shoe line.

"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," saidKevin Plank, chairman and CEO of Under Armour, Inc. "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."

Looking ahead, Under Armour is projecting 2016 full-year revenue of $4.95 billion.

Plank added: "In 2016 we celebrate our 20th year in business. We started by redefining the sports apparel industry through performance fabrics and today we are raising the bar for what athletes expect across all of their health & fitness needs. The Under Armour brand has built tremendous equity over the past 20 years and our financial results are a reflection of that strength. Quarter after quarter, year after year, we continue to post meaningful growth across our core businesses with significant opportunity to grow as we diversify both our product portfolio and our geographic reach. From shirts and shoes to your connected life, Under Armour will continue to be a leader in innovation to make all athletes better and redefine expectations for what a sports brand should be."