Under Armour Hits Record After Shoe Sales Boost Earnings

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Inside Under Armour's Earnings Numbers

Under Armour Inc. rose the most in almost a year after posting second-quarter earnings that topped analysts’ estimates, helped by a push into footwear and other new products.

Profit was 7 cents a share, the Baltimore-based company said in a statement on Thursday. Analysts predicted 5 cents, according to data compiled by Bloomberg. Sales rose to $783.6 million, compared with an average estimate of $761.8 million.

Under Armour, which got its start producing polyester workout shirts aimed at football players in the 1990s, has continually pushed into new athletic-gear markets. It also has enlisted top athletes as endorsers, including basketball star Stephen Curry and golfer Jordan Spieth. Curry led the Golden State Warriors to a National Basketball Association championship this year, further raising Under Armour’s profile.

“This year has highlighted that the right investments are key to not only driving near-term results, but building the foundation for the unlimited potential of the Under Armour Brand,” Chief Executive Officer Kevin Plank said in the statement.

The shares rose 7.3 percent to a record $95.93 at the close in New York, the biggest daily gain since July 24, 2014. Under Armour is up 41 percent this year, compared with a 2.1 percent gain for the Standard & Poor’s 500 Index.

Footwear net revenue increased 40 percent to $153.6 million, bolstered by Curry’s signature product. Apparel sales rose 23 percent to $515.3 million, and accessories sales climbed 39 percent to $83 million.

Under Armour raised its full-year revenue forecast to $3.84 billion, up from a previous prediction of $3.78 billion. Analysts have been estimating $3.82 billion. The company also boosted the lower end of its operating-income forecast to $405 million from $400 million.

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