Under Armour (UA) reported a 29 percent overall sales increase for the second quarter of 2015 compared with the same period last year, with revenues reaching $784 million. It was the twenty-first consecutive quarter of revenue growth exceeding 20 percent. International revenues, which represented 11 percent of total revenues for the second quarter, were up by 93 percent on an annualized basis. Net income for the quarter was down by 17 percent to $15 million, inclusive of the impacts of the Endomondo and MyFitnessPal acquisitions in the Connected Fitness segment.
Apparel sales rose by 23 percent to $515 million, primarily driven by enhanced product offerings in base-layers and training. Footwear sales jumped by 40 percent to $154 million, mainly reflecting the continued product expansion across the running category. Growth in the footwear category was boosted by the ongoing excitement around Stephen Curry signature products, with the Curry One shoe. Accessories grew by 39 percent to $83 million on the back of new introductions across the bags category. Licensing revenues were up by 23 percent to $18 million.
Revenues from Connected Fitness jumped by 148 percent to $14 million. UA's Connected Fitness platform now powers a series of digital health and fitness communities through a suite of applications including UA Record, MapMyFitness, Endomondo and MyFitnessPal. UA's Connected Fitness community now totals more than 140 million unique registered users and adds on average more than 100,000 new athletes each day.
Direct-to-Consumer revenues, which represented 32 percent of total revenues for the second quarter, grew by 33 percent. The company ended the second quarter with 160 owned stores, including 139 Factory House stores and 21 Brand House stores. During the second quarter it opened 18 Brand House locations in places like Chile, China, Taiwan, Malaysia and the Philippines. The company said it is targeting more than 100 additional global Brand House stores opening in 2015, building up on a base of 73 in 2014, three-quarters of which are going to be located in Asia. In addition to physical stores, Under Armour is also developing its online business. In the second quarter alone, it launched new sites in Thailand, Austria, Ireland, Belgium and Portugal.
By geographical region, UA's North American revenues increased by 22 percent to $681 million. In the Europe, Middle East and Africa (EMEA) region, the company continued to focus on the three core markets of the U.K., Germany and France, while also developing distribution agreements in the region, including the Middle East. In the Asia-Pacific region, the focus remains on partner store expansion and e-commerce growth in China. In Latin America, the company recorded balanced growth throughout the region, following its entry into various countries in this market during 2014.
The gross margin for the second quarter was 48.4 percent compared with 49.2 percent in last year's second quarter, primarily reflecting the impacts of foreign exchange rates and air freight expenses. Second quarter operating income decreased by 8 percent to $32 million.
Based on current visibility, the company has raised its full-year sales outlook. Previously, it had anticipated 2015 revenues of around $3.78 billion, representing a 23 percent growth over 2014, and operating income in the range of $400 million to $408 million, representing growth of 13 percent to 15 percent. It now expects revised 2015 revenues of around $3.84 billion, representing a 25 percent increase over 2014, and operating income to be in the range of $405 million to $408 million, representing growth of 14 percent to 15 percent over 2014. The 2015 guidance continues to take into account the net impact from the Connected Fitness acquisitions, as well as the negative impact of the strong dollar on UA's operating margin within its international businesses.
