US: Under Armour bullish after 32% Q3 profit hike
- Q3 net profit rises 32% to US$46m
- Net revenues up 42% to $466m
- Hails developments in new products, footwear
Athletic apparel and footwear business Under Armour highlighted the performance of new products after recording strong growth in earnings and revenues in the third quarter.
The US company said apparel sales had risen 31% to $466m in the three months to 30 September, boosted by its new Charged Cotton and Fleece products.
Meanwhile, new ranges helped double footwear revenues to $52m and the in-house transition of the company’s hats and bags business led to a 211% increase in accessories revenues to $40m.
However, gross margins dropped to 48.4% from 50.9% a year ago, thanks primarily to less favourable apparel margins.
“We successfully launched Storm Fleece during the quarter, our cold weather Charged Cotton product,” said company chairman, CEO and president Kevin Plank.
“We also elevated our footwear message while continuing to enhance our global distribution network.”
Under Armour is now forecasting full-year net revenues of $1.46-1.47bn, up 37-38% on last year, and operating income of $159-162m, up 42-44%.
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