Under Armour has announced financial results for the fourth quarter and full year ended 31 December 2016. The company reported that full year 2016 revenues increased 22% to US$4.8 billion (up 23% on a currency neutral basis). Looking ahead, Under Armour expects 2017 revenue to increase 11-12% to nearly US$5.4 billion.
“We are incredibly proud that in 2016, we once again posted record revenue and earnings; however, numerous challenges and disruptions in North American retail tempered our fourth quarter results,” said Kevin Plank, Under Armour Chairman and CEO.
“The strength of our brand, an unparalleled connection with our consumers and the continuation of investments in our fastest growing businesses – footwear, international and direct-to-consumer – give us great confidence in our ability to navigate the current retail environment, execute against our long-term growth strategy and create value to our shareholders.”
He continued, “Looking forward, our successful track record of re-defining performance gives us great confidence that the opportunities for long-term growth at Under Armour have never been greater. The current environment represents an inflection point to maximize our unique strengths by staying on offense – investing smartly in innovation, deepening our brand connection with consumers and amplifying our focus on operational excellence – positioning Under Armour as a stronger company.”
The company’s Chief Financial Officer, Chip Molloy, has decided to leave the Under Armour due to personal reasons. Effective from 3 February, David Bergman, Senior Vice President, Corporate Finance, and a seasoned member of Under Armour’s accounting and finance organization, will serve as acting CFO. Molloy will remain with the company in an advisory capacity to assist with the transition.
Bergman joined Under Armour in 2005 and is currently responsible for leading all major finance functions including financial planning and analysis, treasury and tax. Prior to this position, he served as Corporate Controller along with several senior management roles within the company’s accounting and finance organization.