US: New products help Under Armour Q3 to increase
- 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.
Performance apparel and footwear maker Under Armour attributed its fourth-quarter profit growth to innovation and product expansion - and said this focus on innovation is set to continue in 2013....
Performance apparel and footwear maker Under Armour has posted a 47% decline in first-quarter net profit, after higher marketing costs offset rising sales....
The Guatemalan government has agreed to enforce its labour laws - finally resolving a complaint filed in 2008 by the US government under the Dominican Republic-Central America Free Trade Agreement (DR...
Sportswear brand Under Armour is being sued by footwear brand Gravity Defyer over Under Armour's use of the G Defy name on its footwear. ...
The most read stories on just-style this week include a look at the challenges Burma faces in becoming a competitive sourcing destination, Under Armour filing a trademark infringement lawsuit against ...
Under Armour has signed an eight-year agreement to supply the USA Gymnastics team with competition and training performance apparel, footwear and accessories....
Performance apparel and footwear maker Under Armour has filed a lawsuit that claims sportswear giant Nike is infringing its I Will trademark. ...
Performance apparel and footwear maker Under Armour has opened its first specialty retail store in Baltimore....
- Fashion fit for the future – strategies for speed
- Digitisation to drive new apparel-making models
- Will new Vietnam wage hinder competitiveness?
- Under Armour Lighthouse will disrupt production
- Pakistan industry seeks help to kickstart exports
- Child refugees found in Turkey apparel factories
- Chinese manufacturer invests $20m in US facility
- US Q3 in brief - Rocky Brands, Gymboree Corp
- Reebok Liquid Factory reinvents shoe production
- Managing change in the move to new tech tools
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020