25 Jul Under Armour reports 23 percent revenue gain in second quarter, raises full-year outlook
Baltimore-based Under Armour‘s growth continues to outpace the company’s expectations.
Revenue for the quarter ended June 30 jumped 23 percent year-over-year to $455 million, the apparel and gear maker announced Thursday. The company now predicts it will generate between $2.23 and $2.25 billion of sales this year, higher than the $2.21 and $2.23 billion it said earlier.
Under Armour revenue has grown at least 20 percent in 13 consecutive quarters. It earned $18 million in the April-to-June quarter, up from $7 million in second quarter of 2012. Earnings per share were 16 cents in the latest quarter, up from 6 cents a year ago and topping analysts’ estimate of 14 cents.
The company’s stock was up nine percent in the first hour of trading, to $67.50 a share.
Under Armour saw revenue gains of at least 21 percent in each of its major product categories.
Under Armour CEO Kevin Plank emphasized the opportunity to grow in areas where the company is already strong — mainly men’s apparel — during a conference call to discuss the second-quarter earnings report. He had spent the first half of the year emphasizing the company’s plans to expand its market share in women’s apparel and footwear — areas where it has yet to have a major impact — while growing business overseas. He discussed those areas, but opened his comments by expressing confidence that Under Armour’s core business had room to grow.
“The runway for our U.S. apparel business is long, and we’re still in the early stages of where our brand can go,” he said.
Plank’s focus on the company’s roots probably should not be a surprise; Under Armour’s second “brand holiday” launched earlier this month around a gritty football commercial influenced by former Ravens linebacker Ray Lewis.