Fourth Quarter

Under Armour's net revenue increased 31% in the fourth quarter of 2014 totaling 895 million US dollars (683 million US dollars in similar period in 2013), while net income totaled 88 million US dollars, up by 37%. Diluted earnings per share were 0.40 US dollars compared with 0.30 US dollars per share in similar period last year.

Fourth quarter apparel net revenues increased 30% to 708 million US dollars (546 million US dollars in the same period in 2013), driven mainly by new offerings across training, hunting, and studio, including expanded platform innovations in ColdGear Infrared, Storm, and Charged Cotton. Fourth quarter footwear net revenues increased 55% and totaled 86 million US dollars, led by expanded offerings in running and basketball. Accessories net revenue increased 22% to 79 million US dollars US dollars.

Direct-to-Consumer net revenue, which represented 38% of total net revenues for the fourth quarter, grew 27% year-over-year. International net revenue, representing 9% of total net revenue for the fourth quarter, grew 123% year-over-year.

Gross margin for the fourth quarter of 2014 was 49.9% (down from 51.3% in the prior year's quarter), primarily driven by a higher mix of international revenue. Fourth quarter operating income increased 49% to 146 million US dollars compared with 98 million US dollars in the prior year's period.

Full Year

For the full year 2014, Under Armour's net revenue increased 32% to 3.08 billion US dollars compared with 2.33 billion US dollars in the prior year. Diluted earnings per share for 2014 increased 27% to 0.95 US dollars.

Apparel net revenue increased 30% to 2.29 billion US dollars (1.76 billion US dollars in 2013), driven primarily by category expansion in training, outdoor, golf, and studio. Footwear net revenue increased 44% to 431 million US dollars during 2014 (299 million US dollars in 2013), reflecting expanded offerings in running and basketball. Accessories net revenue increased 27% to $275 million during 2014.

Direct-to-Consumer net revenue, which represented 30% of total net revenue for both 2014 and 2013, grew 32% over the prior year. International net revenue, which represented 9% of total net revenue for 2014 compared to 6% of total net revenues in 2013, grew 96% year-over-year.

Gross margin for 2014 was 49.0% compared with 48.7% in 2013, primarily driven by favorable year-over-year sales mix. Operating income grew 34% to 354 million US dolaras.

2015 Outlook

Based on current visibility, the company expects 2015 net revenue of approximately 3.76 billion US dollars, representing growth of 22% over 2014. Operating income is expected to be in the range of 397 million US dollars to 407 million US dollars, which will represent growth of 12% to 15% over 2014. The updated 2015 guidance reflects the net dilutive impact from the announced acquisitions.