Under Armour Revenue, Income Up In Q2, Lifting FY '11 Expectations
Under Armour today announced increases in revenues and income in Q2, raising expectations for full FY results in '11. For the period ending June 30, net revenues increased 42% to $291.3M, up from $204.8M in Q2 '10. Net income was $6.2M, up from $3.5M in the year-ago period. Q2 apparel net revenues increased 36% to $204.8M, up from $150.2M, and quarterly footwear net revenues increased 31% to $46.9M, compared to $35.8M a year ago. The company now expects net revenues of $1.42B-1.44B for '11, representing growth of 33-35% from '10. It had previously projected revenues of $1.37B-1.39B for this year (Under Armour). Under Armour President, Chair & CEO Kevin Plank said that the company "will increase its marketing efforts in the coming months as it relaunches parts of its footwear line." The company also will "redesign its 'store-within-a-store' concepts within its retail partners" (BALTIMORESUN.com, 7/26). Plank on a conference call this morning said that Under Armour "will soon roll out a back to school multimedia footwear campaign featuring" Patriots QB Tom Brady, Panthers draftee Cam Newton and UFC fighter Georges St-Pierre. Plank said that the campaign "will be Under Armour’s first where 'footwear takes center stage.'" The company "plans to launch a new look running shoe later this fall." That "will be followed by an expanded line of basketball sneakers in the winter" (BIZJOURNALS.com, 7/26).
YOUTH MOVEMENT: In Baltimore, Andrea Walker writes under the header, "Under Armour's Rookie Strategy For Endorsement Deals. Sports Apparel Company Goes After Up-And-Coming Athletes." Under Armour, which has "built itself from a basement startup to a billion-dollar enterprise, wasn't always able to afford the big endorsement deals of its more established competitors." The athletes the company turned to were "well-respected in their sports -- some of them rookies with the potential to become stars -- but not necessarily known to a broader audience." Under Armour Senior VP/Sports Marketing Matt Mirchin said, "We have positioned ourselves as a brand for the next generation of athletes." The company recently has signed a "variety of athletes," including Newton, Cowboys WR Miles Austin and Ravens WR Anquan Boldin. Under Armour also is "using a small group of up-and-coming players to help build its basketball line." The company also counts Bucks G Brandon Jennings, T'Wolves draftee Derrick Williams and Bobcats draftee Kemba Walker as endorsers (Baltimore SUN, 7/26).