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Under Armour Reports Q4, Full Year Sales Gains

Under Armour, Inc. reported revenues were up 12% to $1.3 billion, driven by a 5% increase in wholesale revenue to $742 million and a 23% increase in direct-to-consumer revenues to $518 million for its fourth quarter 2016.

North American revenues grew 6%, and international revenues, which represented 16% of total revenues in the quarter, were up 55% driven by growth in the U.K., Germany, China and Australia.

Net income for the quarter decreased 1% to $105 million and diluted earnings per share for the fourth quarter of 2016 were $0.23 compared with $0.24 in the prior year’s period.

For its full year, ended December 31, 2016, revenues reportedly increased 22% to $4.8 billion, including a 19% increase in wholesale revenues to $3.1 billion and a 27% increase in direct-to-consumer revenues, which reached $1.5 billion. Direct to consumer revenues reached 31% of total revenues compared with 31% in 2015. North American revenues grew 16% and international revenues grew 63%. The connected fitness segment increased 51% to $80 million.

Net income for the year grew 11% to $259 million.

“We are incredibly proud that in 2016, we once again posted record revenue and earnings, however, numerous challenges and disruptions in North American retail tempered our fourth quarter results,” said Kevin Plank, Under Armour chairman and CEO. “The strength of our brand, an unparalleled connection with our consumers and the continuation of investments in our fastest growing businesses— footwear, international and direct-to-consumer— give us great confidence in our ability to navigate the current retail environment, execute against our long-term growth strategy and create value to our shareholders.”