UA -22.16% pre open
Under Armour: Co provides initial conference call commentary in 8-K; We would note comment cuts off as co is headed to 2017 outlook' Call starts at 8:30am ET
- Apparel revenue came in lighter than had originally anticipated with an increase of 7% to $929 million yet it did see strong results from sport categories including golf and basketball.
- Footwear revenues increased 36% to $228 million as both running and basketball delivered strong growth driven by more premium product offerings.
- Revenues for Accessories increased 7% to $104 million in the quarter with solid results in our bags and headwear businesses.
- Fourth quarter gross margin decreased 320 basis points to 44.8% compared to 48.0% in the prior year's period.
- The decrease includes a negative impact of approximately 230 basis points driven by higher discounts and promotions partially offset by continued improvement in product input costs;
- About 90 basis points of negative impact from the continued strength of our footwear and international businesses, which carry lower margins.
- In addition, the tax rate in the fourth quarter was 33.2% compared to 38.4% in the prior year, due to a higher mix of international sales and profitability and a tax benefit related to our prior year acquisition