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Retail

Under Armour raises guidance after strong first quarter

The Stephen Curry signature line of basketball boots sold very well

Shares in sportswear maker Under Armour Inc (NYSE:UA) advanced in electronic trading ahead of the market open after results topped expectations.

Net revenues in the first quarter of 2016 rose 3% to US$1.05bn from US$805mln in the same period of 2015, slightly ahead of analysts' expectations of US$1.03bn.

Net income jumped 63% to US$19mln from US$12mln the year before, while diluted earnings per share (EPS) of four cents were up a penny on last year and were twice the level forecast by analysts.

The company raised its full year guidance, saying it now expected net revenues of around US$5bn, up from a projected US$4.95bn previously, and operating income of between US$503mln and US$507mln.

"For the past 24 consecutive quarters or six years, we have driven net revenue growth above 20% and we are incredibly proud of our start to 2016 with first quarter net revenue growth of 30%,” said Kevin Plank, chairman and chief executive officer of Under Armour.

“In footwear, this includes the remarkable success of the Stephen Curry signature basketball line, as well as the exciting launches of our first smart running shoe and our new line of Jordan Spieth inspired golf shoes. Combined with the introductions of premium apparel technologies like Microthread and CoolSwitch, we will continue to drive elevated innovation and excitement to the athlete throughout the remainder of 2016," Plank declared.

Shares were up 3.4% at US$45.45 in pre-market trade.

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