Under Armour Inc has today announced financial results for the third quarter ended 30 September 2010. Net revenues increased 22% in the quarter to reach US$328.6 million, compared with net revenues of US$269.5 million in the third quarter of 2009.
Kevin Plank, Chairman and CEO of Under Armour said, "Third quarter results demonstrate our growth engines remain strong. Importantly, we see significant opportunities ahead to broaden our consumer reach, supported by continued growth in both our wholesale apparel and Direct-to-Consumer channels.
“We expect these businesses, along with bringing our licensed hats and bags business in-house and an expected return to growth in footwear, will continue to drive results through 2011."
Taking the year overall, Under Armour, in its outlook, had previously anticipated 2010 annual net revenues in the range of US$990 million to US $1.01 billion. This would represent an increase of 16% to 18% over 2009.
Based on the third quarter results and improved visibility for the full year, the company now expects 2010 annual net revenues in the range of US$1.030 billion to US$1.035 billion, an increase of 20% to 21% over 2009.
The company also expects 2010 diluted earnings per share in the range of US$1.23 to US$1.24, an increase of 34% to 35% over 2009.
Plank concluded, "We are excited about the US$1 billion net revenue milestone in 2010 and remain committed to taking the next step toward becoming a multi-billion dollar, global brand. To reach our goals we must remain disciplined in investing to grow the business, not just investing to defend.
“Important steps include the evolution of our current ColdGear product, the introduction of our first basketball shoes this past weekend, and leading the market once again with an innovative new apparel launch in early 2011."
Net income increased to US$34.9 million in the third quarter of 2010 compared with US$26.2 million in the previous year period. Diluted earnings per share for Q3 2010 were US$0.68 on weighted average common shares outstanding of 51.2 million, compared with US$0.52 per share on 50.7 million shares in the prior year.
Earnings per share (EPS) benefited approximately US$0.05 from a lower than expected effective income tax rate of 37.7%. This was primarily resulting from federal and state tax credits and tax planning strategies.
Third quarter 2010 apparel net revenues increased 28% to US$276.7 million, driven by strong growth across the Men’s, Women’s, and Youth apparel businesses.
Direct-to-Consumer net revenues, which represented 18% of total net revenues for the quarter, grew 47% year on year during the third quarter.
Footwear net revenues in the quarter of 2010 declined to US$26.5 million from US$33.0 million in the third quarter of 2009. The company had previously indicated that running and training footwear net revenues were expected to decline in 2010 compared with 2009.
