US: New products help Under Armour Q3 to increase
By Katie Smith | 25 October 2012
- Q3 profit up 25% to $57m
- Revenue rose 24% to $575m
- New products helped drive results
New products helped performance apparel and footwear specialist Under Armour to post an increase in third-quarter net profit and lift its full-year guidance today (25 October).
Net income grew 25% to US$57m over the quarter ended 30 September, while income from operations was up 21.4% to $91m. Gross margin was 48.7% compared with 48.4% in the prior year, primarily reflecting more favourable North American apparel product margins.
Meanwhile, net revenue rose 24% to $575m, while direct-to-consumer net revenues grew 31% year-over-year. Apparel revenue grew 22% to $445m, driven by a strong performance in the company's men's, women's and youth divisions.
Footwear sales increased 21% to $63m, primarily due to new 2012 running styles, including UA Spine. Sales of accessories jumped 37% to $54m, helped by strong sales of head wear.
Chairman, CEO and president Kevin Plank said: "The third quarter marks our twelfth consecutive quarter with apparel growth in excess of 20% and our tenth consecutive quarter of net revenues growth surpassing 20%. This growth reflects our core belief that when we innovate and add value for the athlete, we win."
The company now expects to post full-year net revenues of $1.82bn, compared to earlier guidance of $1.80bn to $1.82bn. Operating income is expected to reach $207m, compared to previous guidance of $205m to $207m.
Sectors: Apparel, Finance, Footwear
Companies: Under Armour
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