Under Armour's revenues increased by more than 30 percent in each quarter of 2014. They rose by 31 percent in the fourth quarter to $895 million, leading the company to book a 32.3 percent increase for the full financial year to $3,084 million.
The management expects the growth to slow down to 22 percent in 2015 because of currency headwinds and more moderate increases outside North America, where the company's sales jumped last year by 108 percent to $288.0 million, in contrast with a 27.5 percent increase in North America to $2,796 million. Income from licenses grew by 57.2 percent to $86.4 million.
International sales grew at an even higher speed of 123 percent in the fourth quarter, with continued strength in the U.K., Germany and France. A new distribution contract was signed in the Middle East.
UA's business in Europe, the Middle East and Africa accelerated in the course of the year, breaking the $100 million milestone. Faster growth was also recorded in China and other new markets in Southeast Asia and South America.
Additional stores were opened in Greater China and the rest of Asia throughout the year, expanding the total number of brand stores outside the U.S. from 18 to 63. More than 100 new store openings are budgeted for 2015.
Sales of apparel continued to grow strongly in 2014, up by 30.0 percent to $2,291 million, but footwear advanced at a stronger pace of 44.2 percent to $431 million. Accessories went up by 27.5 percent to $275 million. In the fourth quarter, sales went up by 30 percent for apparel, 55 percent for footwear and 22 percent for accessories.
Strong apparel sales were recorded in training, golf, outdoor and studio. A remarkable innovation was the launch of the Magzip, an open-ended magnetic zipper that locks into place without using both hands. Running and basketball led the charge in footwear, building up on the new Speedform technology and offering a wider range of price points.
The outdoor category topped $300 million last year and its growth should accelerate with UA's adoption of Gore-Tex membranes in textiles and Michelin rubber soles in boots.
Direct-to-consumer sales increased by 27 percent in the fourth quarter, representing 38 percent of the total turnover. After launching e-commerce websites in the U.K., Germany and France in the third quarter, UA started up one in Singapore in the fourth quarter.
The quarterly gross margin declined to 49.9 percent from 51.3 percent in the year-ago period, chiefly because of the higher international mix. The strong dollar shaved about 0.2 percentage point and will probably shave another half percentage point in 2015. Marketing expenses represented 8.4 percent of sales, down from 8.9 percent in the year-ago period.
UA's net income increased by 28 percent to $208.0 million for the year. It rose by 37 percent to $87.7 million in the final quarter, exceeding analysts' projections.
