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Under Armour Reports Third Quarter Net Revenues Growth Of 28%; RAISES FULL YEAR OUTLOOK

The following excerpt is from the company's SEC filing.

Third Quarter Net Revenues Increased 28% to $1.20 Billion, First Billion Dollar Quarter in Company's History

Raises 2015 Net Revenues Outlook to Approximately $3.91 Billion (+27%)

Updates 2015 Operating Income Outlook to Approximately $408 Million (+15%), Inclusive of the Impact of the Connected Fitness Acquisitions

Baltimore, MD (October 22, 2015) - Under Armour, Inc. (NYSE: UA)

today announced financial results for the

third quarter


September 30, 2015

. Net revenues increased 28% in the

to $1.20 billion compared with net revenues of

$938 million

in the prior year's period. On a currency neutral basis, net revenues increased 31% compared with the prior year's period. Net income increased 13% in the

$100 million

$89 million

in the prior year's period and diluted earnings per share for the


per share in the prior year's period, inclusive of the impacts of the Endomondo and MyFitnessPal acquisitions.

Third quarter

apparel net revenues increased 23% to

$866 million

$705 million

in the same period of the prior year, driven primarily by enhanced product offerings in baselayer and the expanded Storm innovation platform.

footwear net revenues increased 61% to

$196 million

$122 million

in the prior year's period, primarily reflecting continued product expansion across the running, basketball, and training categories.

accessories net revenues increased 22% to

$104 million

$85 million

in the prior year's period, driven primarily by new introductions across the bags category. Direct-to-Consumer net revenues, which represented 26% of total net revenues for the

, grew 28% year-over-year. International net revenues, which represented 11% of total net revenues for the third quarter, grew 52% year-over-year.

Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "Our scoreboard in the third quarter not only marked our 22nd straight quarter of at least 20% net revenue growth, but also our first $1 billion quarter. Our ongoing success in 2015 has been driven by innovative, head-to-toe product, combined with game-changing performances by our athletes. Leveraging these great successes throughout 2015, our current Rule Yourself global marketing campaign highlights the training and dedication that drives our athletes to be their best on the biggest stages. The campaign features Tom Brady, Misty Copeland, Stephen Curry, and recently named PGA Tour Player of the Year Jordan Spieth. When combined with over 150 million unique registered users across our Connected Fitness community, logging more than 6.5 billion food items and 1.5 billion workouts year-to-date, our brand is resonating with more athletes than ever before and we are investing to not only build deeper relationships with these athletes today, but fulfill our longer term vision to change the way athletes live."

Gross margin for the

in the prior year's period, primarily reflecting the impacts of foreign exchange rates and sales mix, partially offset by favorable product margins. Selling, general and administrative expenses as a percentage of net revenues were

in the prior year's period, primarily reflecting 2015 openings of global Brand House stores and investments to support the Connected Fitness business.

operating income increased 17% to

$171 million

$146 million

Balance Sheet Highlights

Cash and cash equivalents decreased 36% to

$159 million

$249 million

September 30, 2014

. Inventory at

increased 36% to

$867 million

$637 million

. Total debt increased to

$905 million

$192 million

, primarily reflecting borrowing to fund the two Connected Fitness acquisitions.

Updated 2015 Outlook

The Company had previously anticipated 2015 net revenues of approximately $3.84 billion, representing growth of 25% over 2014, and 2015 operating income in the range of $405 million to $408 million, representing growth of 14% to 15% over 2014. Based on current visibility, the Company expects 2015 net revenues of approximately $3.91 billion, representing growth of 27% over 2014 and 2015 operating income of approximately $408 million, representing growth of 15% over 2014. The 2015 guidance continues to reflect the net dilutive impact from the Connected Fitness acquisitions, as well as the impact of the strong dollar negatively affecting our operating margin within our international businesses.

Mr. Plank concluded, "We are experiencing powerful brand momentum in 2015 and we continue to invest to capitalize on our success in the near-term while establishing the foundation for sustainable growth in the future. We are confident that the building blocks to reach our Investor Day target of $7.5 billion in net revenues by 2018 are firmly in place. As we think bigger about the opportunity of our brand, an ongoing focus on investing in key areas like footwear, international, Connected Fitness and manufacturing capability will position us for the long runway of growth beyond just the next three years. Still, with all the success we have seen to date, we firmly believe that we are just getting started."

Conference Call and Webcast

The Company will provide...