New technological innovations for its performance apparel and footwear helped Under Armour Inc. post a 27 percent jump in third-quarter income.
According to the activewear maker early Thursday, it registered income of $72.8 million, or 68 cents a diluted share for the quarter ended September 30. This compared with year-ago income of $57.3 million, or 54 cents a share.
Net sales for the quarter expanded 25.7 percent to $723.1 million from $575.2 million, in the prior-year quarter.
Under Armour bested analysts’ projections of EPS of 66 cents on sales of $710.2 million.
“We have a consistent formula that is driving success across our business: deliver newness and innovation and the consumer responds. This has been instrumental in driving net revenue growth in excess of 20 percent for the past fourteen straight quarters and we will continue to fuel this strategy going forward,” said chairman and chief executive officer Kevin Plank, who touted the firm’s apparel innovations, which include ColdGear Infrared, a thermo-conductive material and its Speedform footwear technology.
“The sustained momentum we are generating domestically will help fuel our global ambitions. Many of these global efforts are ramping up with recent specialty stores opening in China, Japan and Mexico, e-commerce platforms launching in Hong Kong and Taiwan, and new offices opening in Brazil and Chile,” he said. “Moreover, we are better aligning our internal leadership to help capitalize on these global opportunities, while also adding talent across our direct-to-consumer businesses.”
Due to the strong results, Under Armour raised its operating income and revenue guidance. It now expects 2013 revenues of about $2.26 billion, up from between $2.23 billion and $2.25 billion. Operating income is expected to be $260 million, up from prior guidance of between $258 million and $260 million.
Wall Street is looking for EPS of $1.45 on revenue of $2.26 billion for the year.