SBD/October 26, 2011/FinancePrint All
Under Armour officials yesterday said that while the company's core apparel lines “drove strong revenue results in the third quarter, the company is preparing to launch even more products, including sneakers, as well as to enter new markets, such as China,” according to Liz Kay of the Baltimore SUN. Under Armour “updated its net revenue expectation for 2011 to range from $1.46 billion to $1.47 billion, up 37 percent to 38 percent over 2010.” Estimates of operating income for this year “now range from $159 million to $162 million, up 42 percent to 44 percent over last year and higher than earlier predictions, which had ranged from $155 million to $160 million.” Net revenue “increased 42 percent to $466 million in the three months that ended Sept. 30, compared with $329 million during the same period last year.” Net income “rose to $45.9 million, or 88 cents per share, up from $34.8 million, or 68 cents last year.” Under Armour's gross margins “continued to drop in the third quarter, to 48.4 percent -- down more than two percentage points from this time last year.” The company reported that revenue from apparel sales “increased by nearly a third, to $363 million in the third quarter.” Footwear sales for the quarter “were $52 million, twice as high as in the similar period in 2010.” Under Armour Chair, President & CEO Kevin Plank said that the company “has been able to increase average selling prices at the same time that competitors either have not or could not.” Under Armour “plans to expand and relaunch its underwear line in department stores such as Nordstrom and has opened 50 ‘All-American’ stores at Dick's Sporting Goods.” In addition, the company “plans to open four more ‘Factory House’ stores in the last quarter, bringing the total to 80 by the end of the year” (Baltimore SUN, 10/26).
ON THE PROWL: Puma yesterday reported its Q3 net profit remained flat, while earnings per share increased. Sales increased for the quarter, reflecting strong performance in Asia/Pacific and Latin America regions. Q3 net earnings remained flat at $113.3M (all figures U.S.), while earnings per share grew to $7.55 from $7.47 last year. Puma's operating profit improved 1.8% to $164.4M from $162.4M. Footwear sales rose 7% on currency adjusted basis, and the increase was 13.8% in apparel and accessories climbed 13.9% (Puma).