By  on July 28, 2010

Boosted by a 34.1 percent pickup in its apparel sales, Under Armour Tuesday posted second-quarter earnings that more than doubled from a year ago and beat Wall Street estimates by 4 cents.

The performance-apparel firm said net income for the three months ended June 30 jumped to $3.5 million, or 7 cents a diluted share, from $1.4 million, or 3 cents, in the year-ago quarter. Wall Street analysts were expecting earnings per share of 3 cents, according to Yahoo Finance.

Revenues spiked 24.4 percent to $204.8 million from $164.6 million. By category, apparel sales rose to $150.2 million from $112 million; accessories rose 26.3 percent to $8.9 million from $7 million; footwear fell 4.5 percent to $35.8 million from $37.5 million, and licensing revenues increased 22.3 percent to $9.9 million from $8.1 million. The company said direct-to-consumer revenues grew 60 percent year-over-year, driven in part by new Factory House store growth, strong comparable-store sales and strength in the Web business.

Kevin Plank, chairman and chief executive officer, said on a conference call to Wall Street analysts, “The best and simplest part of the apparel story is that everything was up with strong double-digit growth across men’s, women’s and youth. Our growth is across the board: gender, channel, category, wholesale and direct.”

For the first half, income almost doubled to $10.7 million, or 21 cents a diluted share, from $5.4 million or 11 cents, in the 2009 period. Revenues gained 19.1 percent to $434.2 million from $364.6 million.

With the introduction of its ColdGear fabrication this fall geared to a broader range of consumers and online growth aimed at mobile devices, Under Armour is coming within range of $1 billion in annual revenues. In anticipation of developing into what Plank described as a “multibillion-dollar global platform,” Henry Stafford, previously of American Eagle Outfitters, was brought in to head apparel, and John Rogers, previously with Orvis, joined to oversee e-commerce.

To access this article, click here to subscribe or to log in.

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus