US: Under Armour Q2 profit surges on strong sales
- Q2 net profit US$18m, up from $7m
- Net revenues up 23% to $455m
- Company raises FY revenue and profit guidance
Fast-growing sportswear business Under Armour more than doubled second quarter net profit after its 13th consecutive period of 20%-plus revenue growth.
Apparel sales for the US company were up 23% to $310m in the three months to 30 June, thanks to strong performances from its new baselayer products and the expansion of its Storm and Charged Cotton lines.
Footwear revenues rose 21% to $82m, with growth driven by Under Armour’s Highlight football cleat and its UA Spine running shoe.
Meanwhile rising headwear sales boosted accessories revenues, up 30% to $51m, and direct-to-consumer net revenues were up 29%.
The favourable sales mix, along with lower product costs for North American apparel and accessories, helped gross margin to hit 48.3%, up from 45.9% last year, the company said.
“While we continue to see great momentum in our apparel business, we are demonstrating share gains in footwear on the field with baseball and football cleats, as well as building upon our momentum in running footwear with foundational platforms like UA Spine,” said Kevin Plank, Under Armour chairman and CEO.
The company raised its full-year guidance, predicting net revenues of $2.23-2.25bn and operating income of $258-260m.
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