Under Armour Stock Spikes As Company Announces Revenue Growth Of More Than 20%
Under Armour shares "spiked 12.2 percent on Thursday after the company announced a 13th quarter in a row of more than 20 percent revenue growth," according to Chris Korman of the Baltimore SUN. UA earned $17.6M in "the April-to-June quarter, 163 percent more than" its $6.7M profit in the same quarter in '12. The income of 16 cents per share "topped the consensus analyst estimate of 14 cents." Revenues for the quarter "increased 23 percent year over year" to $455M. The company now "predicts it will post revenue of between" $2.23-2.25B this year. It had "previously said it expected to generate between" $2.21-2.23B. UA Founder, Chair & CEO Kevin Plank’s "message to the investment community Thursday spun away from his recent emphasis on women’s apparel and footwear, returning to where the company began: men’s wear, especially football." His focus on the "company's roots could have been expected." UA's second “brand holiday” launched earlier this month "with a gritty football commercial influenced by" former NFLer Ray Lewis. Plank also "diverted focus from the company’s expanding direct-to-consumer business -- both online and through company-owned stores -- and praised retail partners for giving Under Armour more and better floor space." In addition, he "discussed the company’s plans for global expansion" in '14. UA expects to "have more international offices than domestic offices by next year and has targeted countries such as Mexico, Panama and Brazil to drive growth outside" the U.S. Plank also described a "planned store in Shanghai that would be 80 percent focused on educating consumers about sports and equipment and only 20 percent on sales" (Baltimore SUN, 7/26). At press time, shares of UA were trading at $67.66, down 2.498% from Thursday's close of $69.38 (THE DAILY).
FILLING HIS SHOES: In Baltimore, Ryan Sharrow wondered whether UA has "plans to replace" former Senior VP/Footwear Gene McCarthy, who led the company's footwear business "for 3 1/2 years before departing in February." UA COO Kip Fulks "continues to oversee footwear." UA CFO Brad Dickerson said there are "strong designers" under him. He added the company is "always looking for the right leadership talent." Dickerson noted that UA "recently hired" former adidas VP Kevin Ross as VP/Footwear Sales. UA also has hired Neil Jurgens as VP/Global Corporate Real Estate & Campus (BIZJOURNALS.com, 7/25).