I Know First Review

As we you explained in our article from the February 2nd, 2016, Under Armour Inc. (UA) develops, markets and distributes athletic performance gear to men, women, and children in the global market. After a notable week of shoes sales, beating out competitors Nike and Skechers, UA stock had made a significant jump. Earnings reports were expected to show more growth in the 4th quarter of 2015.

The company reported increases in revenues and earning, shares soared

During the 14-days period, UA went up more than 24% according to our prediction of January 18th, 2016. The reason for this amazing performance is primarily an excellent report that the company showed at the end of January. Under Armour shares rose more than 22% on January 28th, 2016 reaching a market cap of $18.1 billion.

Under Armour reported fiscal 4Q15 net revenues of $1,170.7 million, a rise of 30.8% compared to net revenues of $895.2 million in fiscal 4Q14. The company’s cost of goods sold as a percentage of net revenue rose by 3.8%, and its gross profit margin fell by 3.8% in fiscal 4Q15 compared to fiscal 4Q14.

Its net income and EPS (earnings per share) rose to $105.6 million and $0.48, respectively, in fiscal 4Q15, compared to $87.7 million and $0.40, respectively, in fiscal 4Q14.

In fiscal 2015, UA reported net revenues of $3,963.3 million, a rise of 28.5% year-over-year. Its factory house and brand house door counts rose to 161 and 30, respectively. Also, the company’s net income and EPS rose to $232.6 million and $1.05, respectively, in fiscal 2015, compared to $208.0 million and $0.95, respectively, in fiscal 2014.

In the week ended Jan. 23, Under Armour’s athletic shoe sales climbed 66% from a year earlier, according to a report by Deutsche Bank analyst Dave Weiner, while sector leader Nike saw athletic shoe sales rise just 1.5% from a year earlier last week and Adidas athletic shoe sales, including the Reebok brand, rose 5.1% during the same period. Total athletic footwear sales turned negative, showing a 2.5% decline from a year earlier last week.

Footwear net revenue surged 95% from a year earlier to $167, “primarily reflecting” the success of Curry signature basketball line (which carries the name of NBA superstar Stephen Curry) and expanded running offerings, the company said in a statement.

On January 25, 2016, Under Armour entered into a partnership with Dwayne Johnson. Johnson will work with the innovative performance brand to create a range of products across footwear, apparel, and accessories and to support its connected fitness initiatives.

The most important projections for fiscal 2016 are net revenue of $5 billion (growth of 25% over fiscal 2015) and operating income of $503 million (growth of 23% over fiscal 2015).

Previously I Know First Predicted UA bullish stock movement for a 7 day period from Jan 22th to Jan 29th 2016. Managing to bring returns of 23.70% as the algorithm correctly predicted.The overall package performed well having 10 out of 10 stocks predicted correctly and an average return of 3.81% correctly predicting the direction of the S&P500.