US: Under Armour boosts Q2 income
Performance goods firm Under Armour said that its second quarter net income increased 135.6% to US$5.7m, above expectations, driven by healthy sales of apparel and footwear.
Net revenues increased 50.7% for the quarter to $120.5m compared to net revenues of $80.0m during the second quarter of 2006.
Revenues improved across Men's, Women's, and Youth apparel ranges, while expanded product assortments in Golf and Football also grew. Footwear revenues, largely benefiting from increased sales of football cleats, increased 28.9% to $20.1m for the quarter.
"The second quarter marked significant milestones for us as we execute our plan against our key growth drivers," said Kevin A Plank, chairman and CEO of Under Armour. "The strong results in our Women's business, reflected in the 53% top line growth achieved during the second quarter, is evidence that our brand message resonates with female consumers. To maintain that momentum this month we launched BoomBoom-TAP, our largest Women's campaign to date. Our female consumer demands performance both on and off the field. By creating compelling performance products that suit her needs, we can continue to speak to this consumer in a language she understands."
The company said it has positioned its international business for a next stage of growth through the recent appointment of Peter Mahrer as president and managing director for Under Armour Europe. Mahrer joined from Puma AG where he most recently served as head of international sales and general manager, Central Europe.
In its outlook for 2007, Under Armour said it continued to target long-term growth of 20% to 25% for the top and bottom lines, but increased its expected annual net revenues to the range of $580m to $590m, up 35% to 37% over 2006
Plank added: "The progress we have made both in the US and abroad, positions us to meet the ambitious goals we set forth for the company. Under Armour is a growth company, and we are committed to executing on our plan to deliver value to our consumers, retail partners, and shareholders alike."
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