Q2 Earnings: Three Answers From Under Armour Inc (UA)

Remember, as I noted last week, Under Armour’s gigantic competitor in NIKE, Inc. (NYSE:NKE) boasted an incredible $3.26 billion in international sales just last quarter, which was good for nearly 55% of Nike’s total revenue. In addition, NIKE, Inc. (NYSE:NKE) most recently grew its own sales by 9% from the year-ago period (excluding the negative impact of foreign currency changes), showing there’s still plenty of potential for growth on a worldwide scale for athletic apparel companies.

If Under Armour, like NIKE, Inc. (NYSE:NKE), can even partially translate the success of its brand overseas as it has here in the U.S., then, it’ll mean big things for shareholders going forward.

Thankfully, Under Armour’s international revenue grew 24.8% to $25.7 million last quarter. Even so, that still only represents around 6% of the company’s total revenue, showing domestic growth continues to outpace Under Armour’s international segment. Of course, this also shows Under Armour is nowhere near permeating the market here in the U.S., so I suppose it’s an enviable problem for any company to have.

Down the road, then, shareholders should sleep well knowing Under Armour should be able to keep expanding for years to come.

Foolish takeaway
All things considered, I certainly can’t blame the market for pushing shares of Under Armour Inc (NYSE:UA) up so far today as the company appears to be firing on all cylinders with no end in sight to its incredible momentum.

The article Q2 Earnings: 3 Answers From Under Armour originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington owns shares of Under Armour. The Motley Fool recommends and owns shares of Nike and Under Armour.

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