Sporting goods brand Under Armour posted fourth quarter net income up 42.4% to $16.9m compared to $11.9m in the same period of 2006, confirming continued sales growth in both apparel and footwear categories.

The net increase came despite receiving a $1.0m benefit to net income as a result of the impact of state tax credits during the prior year period.

Quarterly net revenues increased 29.2% in the fourth quarter, to $174.8m, compared to net revenues of $135.3m in the fourth quarter of 2006.

Earlier in the month Under Armour announced preliminary financial results for full-year 2007 of approximately $605m in net revenues and diluted earnings per share in the range of $1.03 to $1.04, which were down on analyst expectations.

Today it specified that full-year net revenues for the year increased 40.8% to $606.6m, with full-year net income up 34.8% to $52.6m.

As previously reported, in the second half of 2006 the company received a $3.3m benefit to net income as a result of the impact of state tax credits.

Apparel revenues grew 37.3% for the full year, with the majority of the growth fueled by increased penetration of existing product categories such as Compression, Training, and Golf, Under Armour said. Its footwear revenues for the year increased 52.1%.

Kevin A Plank, chairman and CEO of Under Armour, said: "2007 was a great year for Under Armour. Our ability to execute on our plan resulted in more than 40% growth in the top line.

"We drove nearly $140m of growth in our apparel line by focusing on existing product categories and maximising the productivity of our current distribution, reflecting the continued opportunity that exists in this business alone.

"Our success with our website as well as our first branded store in Annapolis, Maryland, demonstrates our ability to connect directly with our consumer and helps drive the authenticity of the brand."

In its outlook for 2008 the company reiterated its long-term growth targets of 20% to 25% for the top and bottom lines.

For 2008, the company expects annual net revenues in the range of $765m to $775m, an increase of 26% to 28% over 2007.

The company expects 2008 income from operations to be in the range of $108.5m to $110.5m, an increase of 26% to 28% over 2007.

Under Armour has booked a 60-second TV slot during this weekend's Superbowl night to push its new Performance Training footwear line - a range it hopes will stand toe to toe with Adidas and Nike launches in the US.

Plank added: "2008 marks an important milestone in Under Armour's long-term strategy with the launch of our Performance Training footwear.

"We are confident in delivering the proper mix of the right product positioning, a great campaign, great retail partners who are excited about the launch, and most importantly, great product that will deliver against the demands of today's new prototype athlete."