ATLANTA — Fourth quarter net income jumped 42.4 percent to $16.9 million, or 34 cents per diluted share, at Under Armour, Inc., from $11.9 million, or 24 cents per diluted share, a feat that chairman and CEO Kevin Plank attributed to “the ongoing demand for our technical performance products by consumers.”
Sales increased 29.2 percent to $174.8 million from $135.3 million a year ago.
Driven by strong growth across men’s, women’s and youth, apparel net revenues rose 29.5 percent in the quarter, which ended Dec. 31, 2007.
Apparel revenues benefited from continuing gains in the compression and training categories, while new offerings in the mountain product category also drove healthy contributions to top-line growth.
“Today’s athlete continues to vote for the Under Armour brand,” Plank said in a statement. “This momentum drives our top-line results, allows us to maintain our status as the premium performance brand and helps deliver the operating leverage we achieved in our business during the quarter.”
For the 2007 year, net income rose 34.8 percent to $52.6 million, or $1.05 per diluted share, from $39 million in 2006, or 79 cents per diluted share. Net revenues for the year increased 40.8 percent to $606.6 million from $430.7 million in 2006.
Apparel revenues for the year grew 37.3 percent due to rapid growth across men’s, women’s and youth, and the majority of the growth was fueled by increased penetration of existing product categories, including compression, training and golf.
For 2008, Under Armour said it expects annual net revenues to be in the range of $765 million to $775 million, a 26 to 28 percent increase over 2007.