Apr 27, 2010
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Under Armour earnings beat; profit view raised

Apr 27, 2010

NEW YORK, April 27 (Reuters) - Under Armour Inc (UA.N) posted higher-than-expected quarterly profit, fueled by strong apparel and online sales, and raised its earnings outlook for the full year.

Photo: www.underarmour.com

Sales of its athletic clothes, which made up three-quarters of overall revenue, rose 31 percent during the first quarter. Under Armor also benefited from a 73 percent jump in its direct business, which includes sales on its website. However footwear sales lagged, dropping 24.4 percent.

In a statement, Chief Executive Kevin Plank credited Under Armour's broadening appeal to "new athletes across sports, gender and geographies" for the results.

The athletic clothing and shoe maker said on Tuesday 27 April that first-quarter net profit was $7.2 million, or 14 cents per share, up 80.1 percent from $4 million, or 8 cents per share, a year earlier.

Analysts on average had been expecting earnings of 10 cents per share, according to Thomson Reuters I/B/E/S.

The larger online sales and better margins on its clothing lines lifted Under Armour's gross margin rate by 2.3 percentage points to 46.9 percent.

Net revenue rose 14.7 percent to $229.4 million. Analysts had expected $214.5 million.

Under Armour expects the momentum to continue through the current fiscal year. It raised its revenue forecast to an increase of 13 percent to 15 percent.

Under Armour, based in Baltimore, also raised its profit outlook for its full fiscal year, forecasting a 14 percent to 16 percent rise in earnings per share to a range of $1.05 to $1.07. Analysts had forecast $1.05 per share.

Shares fell to $35.35 in premarket trading from a closing price of $35.93 on Monday 26 April on the New York Stock Exchange. (Reporting by Phil Wahba; additional reporting by Alexandria Sage; Editing by Lisa Von Ahn, Dave Zimmerman)

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