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.
This story first appeared in the July 28, 2010 issue of WWD. Subscribe Today.
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.