The company also updated guidance for the 2015 full year. Under Armour now expects that net revenues will be approximately $3.76 billion, compared to a consensus estimate $3.76 billion in revenue.
Under Armour reported its revenues by segment, compared to the previous quarter, as:
- Apparel up 29.7% to $707.7 million
- Footwear up 55% to $85.8 million
- Accessories up 22.2% to $79 million
- Licensing and other revenues up 31.6% to $22.7
For the full year, cash and cash equivalents increased 71% to $593 million for 2014, compared with $347 million in 2013. Total debt increased to $284 million, compared to $153 million in the previous year.
Under Armour announced an agreement to acquire MyFitnessPal for a purchase price of $475 million. This acquisition would work in conjunction with its other recent purchases of both MapMyFitness and Endomondo. This grouping will form what the company calls, the “World’s Largest Digital Health and Fitness Community” and connect Under Armour to approximately 80 million users. Users would number over 120 million once the connection is established with the UA Record app and website.
Kevin Plank, chairman and CEO of Under Armour, said:
We are incredibly proud of recording our 19th consecutive quarter of over 20% net revenue growth, including achieving over 30% growth in each quarter of 2014, demonstrating the unending opportunity we see across our five key growth drivers. … [Under Armour] nearly doubled our International revenues with acceleration in both Europe and China as well as new market strategies in South America, Southeast Asia, and the Middle East. Our Footwear business grew 44% as we solidified and took market share in our core on-field businesses, and debuted our award-winning SpeedForm platform.
The day before earnings came out, Canaccord Genuity issued a call for Under Armour. The firm had a Buy rating and set its price target at $93.
Shares of Under Armour closed Wednesday up 1% at $73.57. Following the release of the earnings report, shares were down 2% at $72.25 in after-hours trading. The stock has a consensus analyst price target of $73.93 and a 52-week trading range of $45.05 to $73.95.
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