Shares of Under Armour Inc. shot up 12.3 percent Thursday as second-quarter profits more than doubled.
The Baltimore-based athletic firm also raised its outlook for the full year. Revenues are now expected to climb to $2.23 billion and $2.25 billion this year, up from the $2.21 billion to $2.23 billion previously forecast. Wall Street was already looking for $2.25 billion, but analysts might now nudge up their own projections.
Shares of Under Armour closed up $7.61 at $69.44 — the stock’s best close ever.
Kevin Plank, chairman and chief executive officer, told analysts on a conference call that the brand still has “significant runway” in North America and is also expanding abroad.
Plank attributed the brand’s strength in North America to how “the equity we have built with consumers on the playing field enables us to be a premium brand, not just with our most technical innovations, but in our core business as well. We look at our average selling price as a key metric of our ability to innovate.”
Under Armour has been at the forefront of incorporating technology into its fashions and has joined the wearable technology revolution, recently introducing the Armour39 performance monitor for athletes.
The company is also expanding overseas, for instance, looking to add three more stores in China, bringing its total to eight by the end of the year.
For the second quarter ended June 30, income rose to $17.6 million, or 16 cents a diluted share, compared with $6.7 million, or 6 cents a diluted share, a year earlier. Profits per share came in 2 cents ahead of the 14 cents analysts projected.
Revenues for the quarter expanded 23 percent to $454.5 million from $369.5 million. Apparel revenues rose 23 percent to $310 million while footwear revenues increased 21 percent to $82 million.