• Q3 profit grew 27% to $73m
  • Revenues increased 26% to $723m
  • Gross margin dropped to 48.4%

Performance apparel, footwear and accessories brand Under Armour has raised its full-year earnings outlook after reporting strong third-quarter profit and sales growth, driven by innovations.

Net income reached US$73m during the three months to 30 September, up 27% on the $57m reported in the same period last year.

Revenues increased 26% to $723m, up from $575m in the prior year. Gross margin slipped slightly to 48.4% from 48.7%, mainly due to higher import duties.

Chairman and CEO Kevin Plank said: "We have a consistent formula that is driving success across our business: deliver newness and innovation and the consumer responds. This has been instrumental in driving net revenue growth in excess of 20% for the past fourteen straight quarters and we will continue to fuel this strategy going forward. 

During the quarter, the company introduced its latest apparel innovation, ColdGear Infrared, which utilises a ceramic thermo-conductive inner coating to absorb and retain body heat. 

Under Armour now expects full-year revenue to be $2.26bn, compared to its previous guidance of $2.23-2.25bn. Operating income is forecast to be $260m, up on its earlier guidance of $258-260m.

"The sustained momentum we are generating domestically will help fuel our global ambitions. Many of these global efforts are ramping up with recent specialty stores opening in China, Japan and Mexico, e-commerce platforms launching in Hong Kong and Taiwan, and new offices opening in Brazil and Chile," Plank added.

"Moreover, we are better aligning our internal leadership to help capitalise on these global opportunities, while also adding talent across our direct-to-consumer businesses."