Under Armour Sales Fall 13%, Hurt By Currency Volatility

By Angela Chen 

Under Armour Inc. reported Tuesday that its earnings fell 13% in the March quarter because of currency volatility and costs related to previous acquisitions.

Shares fell about 4% in premarket trading.

The Baltimore-based maker of athletic gear raised its 2015 revenue guidance slightly to $3.78 billion from $3.76 billion. Analysts had been calling for $3.82 billion.

Over the years, Under Armour has built up its footwear offerings and expanded its fleet of concept stores, targeting new international markets for a brand best known in the U.S. for performance athletic apparel.

In the latest quarter, apparel revenue grew 21% to $555 million, while footwear revenue grew 41% to $161 million.

Last fall, Under Armour surpassed Adidas AG to become the No. 2 sportswear brand in the U.S. by retail sales. But both companies remain far behind Nike Inc., which has long held the top perch in sales of sweats and sneakers in the U.S.

In February, Under Armour said it acquired the nutrition-tracking platform MyFitnessPal for $475 million, expanding the athletic-gear maker's digital platform as it seeks to use online fitness communities to boost sales.

Overall, for the first quarter ended March 31, the company posted profit of $11.7 million, or five cents a share, down from $13.5 million, or six cents a share a year earlier.

Sales grew 25% to $804.9 million. International revenues, which are 12% of total sales, surged 74%.

Analysts had expected earnings of five cents on revenue of $805 million.

Write to Angela Chen at [e-mail]

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