Under Armour's Spine Shoe, Alter Ego Line Help Q1 Earnings Exceed Expectations
Under Armour delivered "better than expected financial results for the three months ended March 31," according to Chris Korman of the Baltimore SUN. The company's 7 cents per share income "topped analysts’ consensus estimates of 3 cents a share" as its revenue jumped 23%. UA continues to work to "broaden its brand’s appeal with consumers, focusing on women’s apparel and shoes." UA Founder, President & CEO Kevin Plank attributed the growth to "several factors, including the brand holiday and the Alter Ego line of gear." He said that an "increase in the range of fleece offerings and the popularity of a new running shoe technology called Spine also pushed sales." Overall revenue increased 22% from $283M to $346M. Revenue from apparel, which accounts for 75% of UA's sales, increased "more than" 20% for "the 14th straight quarter." Yet company officials "focused much of their discussion on growth in its much-maligned footwear sector," where it saw a 27% increase in sales over '12. SportsOneSource analyst Matt Powell said that UA’s sales of running shoes in March "more than doubled," but still only represented 2.8% of "the total market." He added that UA has 19% of the "cleat market" and 0.4% of the "basketball market." Plank said that the company is "focused on establishing its 'authenticity' with basketball players before expanding the line." Plank also "dubbed the new Brand House a success, saying it had helped the company understand what customers wanted" (Baltimore SUN, 4/20). At presstime, shares of UA were trading at $55.34, down 1.9% from the close yesterday (THE DAILY).