Baltimore—Under Armour continued its upward stride as a force to be reckoned with in athletic wear. The upwardly-mobile brand posted Wednesday another better-than expected fourth quarter and announced its intention to buy MyFitnessPal, the fitness tracking app.
Under Armour posted a net income increase of 37% to $88 million, or 40 cents a share, beating analysts’ average estimate by one penny.
Net revenue leaped 31% to $895 million, easily beating analysts’ forecast for $848 million in sales.
For its full year report, Under Armour recorded a 32% increase to $3.08 billion in revenue, slightly higher than the $3.03 billion forecast the company had provided. Net income for the year was $208 million, or 95 cents a share, up from 75 cents a share last year.
“We are incredibly proud of recording our 19th consecutive quarter of over 20% net revenue growth, including achieving over 30% growth in each quarter of 2014, demonstrating the unending opportunity we see across our five key growth drivers,” Chairman/CEO Kevin Plank said in a statement.
Referring to its efforts to engage women consumers with its “I Will What I Want” campaign featuring ballerina Misty Copeland, Plank praised his company’s growth, especially internationally and in footwear.
International revenues grew 96% year over year (on a full-year basis) while Under Armour’s 2014 footwear revenue increased 44% from 2013. It full year apparel sales
‘Largest Digital Fitness Community’
Within Under Armour’s other business segments, full-year apparel revenue increased 30% to $2.29 billion while accessories revenue grew 27% to $275 million.
In other news, Under Armour announced its intention to build “the world’s largest digital health and fitness community” by acquiring Endomondo and My Fitness Pal.
Under Armour will pay $85 million for Endomondo, a fitness tracking platform that lets users map, record and share workouts through social networks. Most of the app’s 20 million registered uses live in Europe which will help Under Armour grow its Under Armour Connected Fitness community.
For MyFitnessPay, which has more than 80 million registered users, Under Armour will pay $475 million for “the leading free resource.”
“Similar to MapMyFitness, Endomondo and MyFitnessPal have established track records of unmatched equity, expertise and passion in the fitness and nutrition space, and they are ideal partners to enable Under Armour to provide data-driven, proactive solutions to help athletes of all levels lead healthier and more active lifestyles,” Plank said.
By combining with MapMyFitness, Endomondo and MyFitnessPal can expand Under Armour’s digital health community to 120 million users. The deal is expected to close in the first quarter.
Meanwhile, looking ahead to its full year forecast, Under Armour predicted it expects its full-year net revenues to grow 22% to $3.76 billion and its full-year operating income to fall between $397 million and $407 million.