US: Under Armour "bullish" in full-year guidance rise
- Q2 profit flat at $18m
- Revenues jump 34% to $610m
- Analyst views FY outlook as "bullish"
Under Armour was "encouraged" by the response in its footwear and international businesses
An increase in projected full-year earnings and revenue at Under Armour has been described as "bullish" and a "positive catalyst" move by one analyst.
The performance apparel, footwear and accessories brand said net income amounted to US$18m in the three months to 30 June, unchanged from the prior year period, due to planned marketing and innovation expenses.
Net revenues jumped 34% to $610m from $455m a year ago. Apparel revenues grew 35%, and footwear revenues increased 34%, with its Highlight ClutchFit and SpeedForm "resonating" with consumers. International revenues, which represented 8% of total sales, grew 80% year-on-year.
Gross margin improved slightly to 49.2% from 48.3% last year, driven by favourable year-over-year sales mix and product margins.
"The broad-based momentum that we have been experiencing recently showed no signs of stopping during the second quarter," said chairman and CEO Kevin Plank.
"While we continued to add more dimension to our largest growth driver in apparel, we were particularly encouraged by the brand response we are seeing in both our footwear and international businesses."
The company now expects full-year revenue to range from $2.98-3bn, compared to its earlier guidance of $2.88-2.91bn. Operating income is forecast to reach $343-345m, up from its earlier guidance of $331-334m.
UBS analysts viewed the significant rise as "bullish" considering the second quarter represents its lowest volume. Michael Binetti, Steven Strycula, and K.C. Stumbaugh said: "In our recent meetings, Under Armour commented that it prefers to spend back any upside this year to make growth plans for 2015 'bulletproof'.
"A big revenue guidance increase in second-quarter together with Under Armour's history of giving early guidance for the out-year on its third-quarter call puts another clear positive catalyst on the calendar for Under Armour, in our view."
Click here for further insight on Under Armour's second-quarter performance.
Under Armour, Inc. - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offer...
The most-read stories on just-style this week include a look at the line-up for this year's Prime Source Forum in Hong Kong, sandblasting claims in Chinese jeans factories, and a roundup of wearable t...
Under Armour, Inc. (UA) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by Glo...
Under Armour Inc has generated astonishing growth since launching in 1996. Genuine product innovation, as well as an image of professionalism that makes its consumers feel like athletes have driven th...
The line-up for this year's Prime Source Forum in Hong Kong features senior executives from VF Corp, PVH, Under Armour, New Balance, Adidas and TAL Apparel, who will discuss sourcing in Africa, the im...
This report provides information, analysis and valuable insight on developments relating to the performance apparel industry in the following categories: acquisitions, divestments and mergers; corpora...
- Speed to market key to Adidas 2020 growth plan
- SuperGroup to adapt sourcing model for speed
- SOURCING: Production problems weigh on Pakistan
- Cutting-edge companies focus on consumer needs
- What next for smart fabrics and garments?
- Transparency call for German apparel firms
- Lululemon Athletica on “strong growth” track
- El Corte Ingles to accelerate time to market
- Honduras “union-busting” rift unresolved
- Quiksilver appoints Agnes to CEO role
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Outdoor performance apparel: peaks, valleys, and green fields
- Global market review of swimwear - forecasts to 2019