Shares of Under Armour Inc. spiked 5.7 percent following the firm’s 54 percent jump in fourth-quarter profits and the double-digit percent growth forecast in both net revenues and operating income for 2013.
For the three months ended Dec. 31, net income rose to $50.1 million, or 47 cents a diluted share, from $32.6 million, or 31 cents, in the year-ago quarter. Net revenues rose 25.5 percent to $505.9 million from $403.1 million.
Fourth-quarter net apparel revenues rose 25 percent to $405 million, while accessories rose 16 percent to $43 million. Net footwear revenues rose 43 percent to $45 million. Direct-to-consumer revenues grew 29 percent and represented 39 percent of total net revenues in the quarter. The company’s net revenue growth for the period represented its 11th consecutive quarter of gains of at least 20 percent. RELATED CONTENT: Click Here for More Earnings Coverage >>
The company said gross margin for the period fell slightly to 50.3 percent from 51.6 percent last year due to a less favorable sales mix and higher air freight costs.
For 2012, profits for the full year rose 32.9 percent to $128.8 million, or $1.21 a diluted share, from $96.9 million, or 92 cents, in 2011. Total net revenues were up 24.6 percent to $1.83 billion from $1.47 billion. Kevin Plank, chairman and chief executive officer, said, “With these strong results in hand, we are well on our way toward delivering on the goal established at our June 2011 Investor Day to more than double our net revenues from 2010 to 2013.”
The company provided 2013 net revenue guidance at $2.20 billion to $2.22 billion, an expected growth rate of 20 percent to 21 percent over 2012. It also forecasted 2013 operating income in the range of $255 million to $257 million, or a growth rate of 22 percent to 23 percent over 2012.
Plank said growth will be enhanced by continued expansion of its consumer base in women’s and children’s, as well as the launch next month of a new product called Armour39.
Shares of Under Armour closed at $50.87 in trading Thursday on the New York Stock Exchange.
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