US: Under Armour records strong 2011 profit growth
By Petah Marian | 26 January 2012
- FY net income up 41.5% to US$96.9m
- Revenue grew 38% to $1.47bn
- Gross margin fell to 48.4% from 49.9%
Sportswear brand Under Armour today (26 January) reported a jump in full-year net income after recording strong sales growth in its training products.
For the year ended 31 December, net income was up 41.5% to US$96.9m. Net revenue grew 38% over the period to $1.47bn.
Apparel revenues increased 31% to $1.2bn, led by the training category, which included the introduction of Charged Cotton and strength in its fleece product range. Direct-to-consumer revenue grew 62% over the prior year, and came to represent some 27% of net revenue, against 23% last time.
Footwear net revenue increased 43% to $182m during 2011, while accessories net revenue tripled to $132m from $44m.
However, gross margin fell to 48.4% from 49.9% due to less favourable North American apparel product margins and the impact of the hats and bags transition in 2011.
During the fourth-quarter net income was up 41.8% to reach $32.5m. Revenue increased 34% to $403m, thanks to continued strength in the fleece and expanded Charged Cotton range. Direct-to-consumer sales were 50% higher than last year's quarter.
The company expects 2012 operating income to grow at the higher end of its 20-25% long-term target, with net revenue coming in at the low end of its 20-25% growth target.
"With the credibility we have built with our consumer, we upheld our premium positioning in the marketplace in 2011 by delivering compelling innovation through programs like Charged Cotton and our Charge RC running shoes," said chairman, president and CEO Kevin Plank.
"We remain focused on long-term profitable growth. This means continuing to target distribution where our consumer is looking for us and that is appropriate for our brand.
"It also means balancing new, relevant innovation stories such as our ColdBlack apparel technology with re-invigorated product in our heritage baselayer programs. Finally, the operational discipline we continue to add across our organisation will help maximise these drivers to our bottom line."
Companies: Under Armour
View next/previous articles
Currently reading -
US: Under Armour records strong 2011 profit growth
26 Jan 2012 -
Related research
At the crossroads of sports, fashion and popular culture, the fitness apparel market boasts some of the best-established brands in the world. This report explores how the macroeconomic landscape, national fitness activity and demographic changes are ...
Performance apparel markets: business update, 1st quarter 2012
This report provides information, analysis and insight on: acquisitions, divestments and mergers; corporate social responsibility (CSR); events; financial results; joint ventures, cooperation, licensing and distribution; legal issues; regional headqu...
Performance apparel markets: product developments and innovations, 1st quarter 2012
This report provides new information on the latest developments in fabrics for performance apparel, flame retardant fabric treatments, fibres and yarns for protective apparel, moisture management technology, sportswear, sustainable fibres, and water ...
Related articles
There are currently no comments on this article
Be the first to comment on this article