Under Armour Inc. reported its 2014 fiscal year results today, along with the acquisition of two new fitness-tracking platforms.
For the quarter ending Dec. 31, Under Armour’s net income was $87.7 million, or 40 cents a diluted share. It was a 36.8-percent gain over the $64.1 million, or 30 cents per diluted share, from the year-ago period.
The firm also reported $895.2 million in net sales. While apparel was the strongest category, footwear performed as the second top seller for the brand.
Analysts had expected the firm to make 39 cents per share and reach net sales of $848.96 million in the quarter. For the entire fiscal year, Under Armour’s net revenue grew by 32 percent compared to 2013 to $3.08 billion, and exceeded company guidance of $3.03 billion for revenue. It also beat market-watcher predictions that the firm would top sales of $8.04 billion in the year.
Margins grew slightly during 2014 to 49 percent, up from 48.7 percent in 2013.
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Apparel sales grew 30 percent, but footwear saw the biggest gains of the year, with a 44-percent growth over 2013. Total footwear sales were $431 million in 2014.
Under Armour also updated 2015 guidance: The firm said it expected revenue of approximately $3.76 billion, growth of 22 percent over 2014.
“We are incredibly proud of recording our 19th consecutive quarter of over 20-percent net-revenue growth,” said Kevin Plank, chairman and CEO of Under Armour in a statement.”2014 marked the year we ignited a powerful new conversation with women, as our I Will What I Want campaign underscored our long-term commitment to both female athletes and athletic females.”
“We built upon our global mission to Make All Athletes Better, as we 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,” Plank added.
The firm also announced that it had completed an $85 million acquisition of Copenhagen-based Endomondo in early January. The European fitness app offers another platform and area to help strengthen the Under Armour fitness tracker MapMyFitness.
In the first quarter, Under Armour also expects to finalize the acquisition of San Francisco-based MyFitnessPal.com, a health and fitness app, for an expected $475 million.
Combining these two platforms with the existing MapMyFitness platform, which Under Armour acquired in 2013, will give the company a base of 120 million users.