Golden State Warriors MVP Steph Curry is arguably the best player in the NBA right now and his sudden celebrity has sent shares of Under Armour soaring.
Under Armour’s Curry line of basketball sneakers led by the Curry name now account for 15% of the company’s overall revenue.
The Curry One sneaker debuted last February as Curry’s MVP and NBA championship season was realized. The Curry Two hit stores in October.
Overall sales at Under Armour have risen by 31% in the quarter while profits were up 21%.
Under Armour shares soared more than 15% in early trading Thursday on the news.
Before Thursday’s rally shares at the sports apparel provider were down 15% on the year and 35% from its all-time high. Some investors worried that the company’s stock was overvalued and would fail to deliver on its recent amazing growth.
The company signed Curry to a multiyear contract before he became the NBA’s best player. The Warriors are arguably even better this year than they were last season. They’re off to a 42-4 start.
Other big name stars
The company has an eye for emerging talent. Among its other recently signed athletes are gold superstar Jordan Spieth, National League MVP Bryce Harper, and Carolina Panthers quarterback Cam Newton, who is heading into the Super Bowl.
The tech side of Under Armour
The company is hedging its bets by diving further into the digital universe, revealing UA Record, a digital dashboard app for health and fitness.
“From shirts and shoes to your connected life, Under Armour will continue to be a leader in innovation to make all athletes better and redefine expectations for what a sports brand should be,” said Under Armour CEO Kevin Plank in its earnings statement.
90% of the company’s revenue is still being derived by customers in North America. The company has started to target Brazil, Europe, and China.
Under Armour reported full year sales of just under $4 billion. Nike’s annual revenue is expected to be nearly $33 billion.
While the company is still trailing behind Nike and Adidas, it’s growth has been impressive and its ability to pick star athletes to endorse its products may finally be relaxing investor concerns about the products potential for growth in a very competitive space.
FBR analyst Susan Anderson wrote in a report Thursday that she believes revenues could grow by around 30% annually for the next few years.