Under Armour Revenue Jumps 30% and It's All Because of Steph Curry
Under Armour is making big money these days, thanks to the ongoing success and rapidly increasing popularity of their most prominent endorser, the Golden State Warriors' Stephen Curry. With the brand producing Steph Curry basketball shoes, Under Armour reported a 30% increase in revenues in this quarter alone, even beating the estimates from expert analysts.
Translated to money, that number is now $1.05 billion, or a bit over the $1.02 billion analysts expected, per Forbes report. The same report said that the incredible growth in its revenue is primarily caused by the rising demand for their shoes. And as a result, the net worth of the company's CEO and founder Kevin Plank has spiked to $160 million.
While the brand is sure worthy of competing with the traditional giants in Nike and Adidas, Under Armour knows for a fact that a huge chunk of its recent success is the Stephen Curry line of shoes. To attest to that fact, the company disclosed that their shoe sales actually made a 64% increase to its revenues in this quarter alone. Translated to monetary figures, that should be around $264 million.
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The Baltimore Sun reports that the company's income increased to $19 million, in comparison to the $12 million it got in the same quarter of last year. Aside from its shoe line, other aspects of the business also experienced substantial growth and increase in its sales, including apparel which saw a 20% jump, thanks to its golf clothing and training equipment endorsed by top golfer Jordan Spieth. Meanwhile, their accessory sales, made up primarily of bags, hats, and headbands saw a 26% increase.
As a result of the increase in the company's sales, there was a need to modify its full-year revenue outlook and put it at $5 billion, from the original outlook of $4.95 billion.
