US: Under Armour Q4 profit rises 54% on innovation
- Fourth quarter net income increased 54% to $50m
- Revenue grew 25% to $506m
- Full-year net profit was up 32.8% to $128.7m
- Revenue increased 25% to $1.8bn
Under Armour saw net revenue shoot up during the fourth quarter, helping the company record strong full-year growth.
Net income at the sportswear brand jumped 54% to US$50m over the quarter ended 31 December, from $33m in the same period of the prior year. Revenue increased 25% to $506m, which was driven primarily by fleece, and a broader expansion of the Storm platform across the category.
Footwear revenue increased 43% to $45m, driven by new running styles and strong sell in of 2013 baseball cleats.
For the full-year, net profit increased 32.8% to US$128.7m as revenue increased 25% to US$1.8bn.
Apparel net revenue grew 23% to $1.4bn, led by the training category, which included the expansion of both the Charged Cotton and Storm platforms. Footwear net revenue increased 32% to $239m.
"We closed 2012 strongly, delivering net revenue growth of at least 20% for the eleventh consecutive quarter in Q4 by building upon key apparel technology platforms like Storm Fleece and Charged Cotton," said chairman and CEO Kevin Plank.
"Our ability to bring practical innovation to our consumer across a broad range of product drove our 25% net revenue growth in 2012 and positions us well for 2013 and beyond."
The company is forecasting net revenues to be in the range of $2.2-2.22bn, representing growth of 20-21% over 2012, and operating growth in the range of $255-257m, a 22-23% increase over the prior year.
"In the year ahead, we will drive growth by re-invigorating core categories like Baselayer, continuing to expand our consumer base in women's and youth, and introducing the next wave of Under Armour innovation through product such as Armour39 that will debut in the next month," said Plank.
"We will open the next generation of Under Armour specialty retail in mid-February in our home city of Baltimore, while we are prioritising our growth strategies in key markets in Europe, Asia, and Latin America.
"We will also continue to invest in the right talent, infrastructure, and processes to ensure that we deliver balanced financial results well into the future."
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