Under Armour Strong Sales Growth

Us professional sportswear brand UnderArmour recently released its first quarter 2016 figures, thanks to the celebrity endorsement effect of NBA superstar StephenCurry and golf star JordanSpieth, with sales surging 30% over the same period last year.

The company immediately raised its annual performance forecast for 2016.

UnderArmour shares rose 8.7% to $47.49 in early trading on the New York Stock Exchange on Thursday.

According to Reuters, UnderArmour has increased at least 20% of its quarterly sales in the past six years. Last year, it replaced Adidas, the German sports equipment giant, to become the second largest in the US.

Brand, Nike still firmly occupies the leading position of the market leader.

CorinnaFreedman, an analyst at BB&TCapitalMarkets, said that there was a recent worry that the downward trend in the clothing industry was groundless. UnderArmour sales grew strongly and gross margins were much better than analysts' forecasts.

As of March 31st, sportswear and outdoor clothing sales increased by $666 million 600 thousand, an increase of 20% over the same period last year. More and more consumers chose to buy the brand's training wear and golf apparel, which accounted for more than 60% of the company's sales revenue.

The company raised its annual forecast, with annual sales rising from about $4 billion 950 million to about $5 billion.

From $503 million to $5.03~5.07 billion.

Analysts on Thomson Reuters forecast an average sales of $4 billion 980 million in 2016 and a net profit of 2 cents per share.

Sports shoes sales of $264 million 200 thousand, a sharp increase of 64%, SpeedForm

CurryOne and CurryTwo basketball shoes and Spieth new golf shoes DriveOne has strong demand.

According to Thomson Reuters StarMine data, as the brand discount increased, the US dollar was strong, leading to a decline in gross margin from 46.9% to 45.9%, but still higher than analysts' previous forecast of 45.4%.

Net profit rose to $19 million 200 thousand (diluted 4 cents per share) from 11 million 700 thousand US dollars (3 cents per diluted share) during the same period last year, higher than analysts' average forecast of 2 cents per diluted share.

The company predicted that sales in the second quarter will grow by more than 20%, and gross margins will not change much compared with last year.

Freedman believes that the first quarter gross interest rate is higher than the forecast, so that the forecast of the second quarter gross interest rate is too conservative and investors should be optimistic.