US: Charged Cotton helps lift Under Armour Q1
- Q1 profit soars 68% to $12.1m
- Net revenues increased 36% to $312.7m
- Company raises 2011 earnings, revenue guidance
The launch earlier this year of a high performance 'Charged Cotton' line has helped sportswear maker Under Armour Inc to a 68% jump in first quarter profit the company said today (26 April).
The Baltimore-based firm also raised its guidance for the full year, and says it expects revenues in the range of $1.37bn to $1.39bn - a growth of 29% to 31% over 2010 - and operating income up 33% to 36% to between $149m and $153m.
The raised outlook comes after the company booked a net income of $12.1m or $0.23 per share in the three months to 31 March, up from $7.2m or $0.14 per share in the same period last year.
Net revenues increased 36% to $312.7m, from $229.4m last time. Apparel revenues were up by 34% to $230.5m, while direct-to-consumer sales grew 53% year-over-year. Footwear sales increased 20% to $51.4m.
"The launch of Charged Cotton to date shows that we can change category expectations, while broadening the overall market opportunity for the brand," explained president and CEO Kevin Plank.
"At the same time, we continue to see opportunities to better meet consumer demand through enhanced execution with our existing retail partners as well as through our own direct-to-consumer channel."
The Charged Cotton range, which was launched at the end of January, includes men's and women's shirts and shorts made from a new cotton/elastane fabric that speeds evaporation and helps athletes keep cool.
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