Under Armour today announced net revenues increased 34% to $403M during Q4 of '11. Net income increased 42% to $33M. Diluted earnings per share were $0.62, compared with $0.44 per share during Q4 last year. Apparel net revenues increased 27% to $323M, compared with $254M in the same period of the prior year, driven by continued strength in Fleece and the expanded Charged Cotton platform. Footwear net revenues increased 43% to $31M from $22M in the prior year's period, primarily reflecting new introductions in running footwear. Gross margin was 51.6%, compared with 51.7% in the prior year, reflecting less favorable North American wholesale apparel product margins along with the ongoing impact of the hats and bags transition in '11. For the full year '11, net revenues increased 38% to $1.473B, compared with $1.064B in the prior year and compared with the company's prior outlook of $1.46-1.47B. Diluted earnings per share for the full year increased 38% to $1.85 per share, compared with $1.34 per share (Under Armour). MARKET WATCH’s Matt Andrejczak noted company inventories “grew 63% through the first nine months of 2011 to support the launch of new cold weather exercise gear, hats, and bags.” But a mild winter “has been a setback for companies selling winter apparel.” Higher prices for petroleum-based synthetic materials used in the company’s fabrics “is another factor cited for rising inventory costs.” Under Armour’s stated goal is “for inventories to grow more closely with revenue” (MARKETWATCH.com, 1/24). At presstime, shares of Under Armour were trading at $72.98, down 4.51% from yesterday's close of $77.49 (THE DAILY).
