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Under Armour, Columbia Sportswear Earnings Up

Both companies reported better-than-expected third-quarter earnings and raised their full-year sales guidance.

Activewear apparel vendors Under Armour Inc. and Columbia Sportswear Co. reported better-than-expected third-quarter earnings Tuesday, as both companies raised their full-year sales guidance.

 

At Baltimore-based Under Armour, net income for the quarter ended Sept. 30 rose 31.9 percent to $46 million, or 88 cents a diluted share. This compared with year-ago income of $34.9 million, or 68 cents a share. Net revenues expanded 41.7 percent to $465.5 million, from $328.7 million.

 

Analysts anticipated EPS of 83 cents on sales of $445.6 million.

 

“Our brand continues to evolve and reach a broader range of consumers, and we believe we are still just scratching the surface of the brand’s global potential,” said chairman and chief executive officer Kevin Plank, who added that the company anticipated 2011 sales of between $1.46 billion and $1.47 billion, up from a range of $1.42 billion to $1.44 billion.

 

Wall Street is looking for sales of $1.45 billion.

 

Aided by higher demand for its Sorel brand, Columbia Sportswear said net income for the period ended Sept. 30 jumped 29.4 percent to $67.5 million, or $1.98 a diluted share, compared with income of $52.2 million, or $1.53 a share a year earlier.

 

Sales rose 12.5 percent to $566.8 million from $504 million. Analysts predicted EPS of $1.60 on sales of $568.9 million.

 

The maker of outdoor apparel, accessories and footwear said it expects its annual sales to increase 15 to 16 percent over last year, which would be roughly between $1.7 billion and $1.72 billion, in range with Wall Street’s estimate of $1.72 billion.