Jul 26, 2011
Under Armour Q2 beats Street, raises FY view
Jul 26, 2011
July 26 - Sportswear maker Under Armour Inc posted a higher-than-expected quarterly profit on strong sales at its apparel and direct-to-consumer business, and raised its 2011 revenue forecast, sending its shares up 5 percent.
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The company, known for apparel that draws sweat away from the body, now sees sales of $1.42-$1.44 billion for the year, compared with its previous estimate of $1.37-$1.39 billion.
Though apparel companies like Under Armour and bigger rival Nike Inc have been struggling with higher material, labor and freight costs, their products continue to be popular with consumers.
In June, Nike also beat analysts' estimates helped by a higher demand.
Under Armour said apparel sales rose 36.3 percent to $204.8 million for the quarter.
Revenue from its direct-to-consumer business, which includes its Under Armour Specialty Stores, Under Armour Factory House stores and its online business and contributes 27 percent of its revenue, rose 81 percent.
Second-quarter net income rose to $6.2 million, or 12 cents a share, from $3.5 million, or 7 cents a share, in the year-earlier quarter. Sales rose 42 percent to $291.3 million.
Analysts on average had expected the company to earn 8 cents a share, on revenue of $273.44 million, according to Thomson Reuters I/B/E/S.
Shares of Baltimore, Maryland based Under Armour rose to $82.20 in trading before the bell. They closed at $78.59 on Monday on the New York Stock Exchange.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Joyjeet Das and Gopakumar Warrier)
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