BALTIMORE (AP) - A line of Stephen Curry basketball sneakers and increased demand for its athletic wear helped Under Armour post better-than-expected financial results in the fourth quarter.
Shares of Under Armour Inc. soared 16 percent in morning trading Thursday.
Under Armour began selling Curry basketball sneakers last year. The company expanded its deal with Curry, who plays for the Golden State Warriors, through 2024 late last year. Under Armour said Thursday that its footwear revenue in the fourth quarter jumped 95 percent to $167 million.
Apparel revenue rose 22 percent to $865 million, helped by higher demand for training, running, golf and basketball gear.
The Baltimore-based company reported net income of $105.6 million, or 48 cents, per share in the fourth quarter, compared with $87.7 million or 40 cents, in the same quarter a year ago.
The results surpassed Wall Street expectations. The average estimate of 20 analysts surveyed by Zacks Investment Research was for earnings of 46 cents per share.
Revenue rose nearly 31 percent to $1.17 billion in the period, also exceeding Street forecasts. Thirteen analysts surveyed by Zacks expected $1.12 billion.
For the year, the company reported profit of $232.6 million, or $1.05 per share. Revenue was reported as $3.96 billion.
Under Armour expects full-year revenue for 2016 of $4.95 billion, above the $4.91 billion analysts expected, according to FactSet.
Shares of Under Armour rose $11.35, or 16.6 percent to $79.93 in morning trading Thursday.
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Elements of this story were generated by Automated Insights (https://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on UA at https://www.zacks.com/ap/UA
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Keywords: Under Armour, Earnings Report
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