Under Armour, Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise

Under Armour, Inc. (NASDAQ:UA) reported net income above Wall Street’s expectations for the second quarter. The Company is a developer, marketer and distributor of branded performance apparel, footwear and accessories for men, women and youth.

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Under Armour Earnings Cheat Sheet for the Second Quarter

Results: Net income for Under Armour, Inc. rose to $6.2 million (12 cents per share) vs. $3.5 million (7 cents per share) in the same quarter a year earlier. This marks a rise of 77% from the year earlier quarter.

Revenue: Rose 42.2% to $291.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: UA beat the mean analyst estimate of 9 cents per share. It beat the average revenue estimate of $273.6 million.

Quoting Management: Kevin Plank, Chairman, CEO, and President of Under Armour, Inc., stated, “We recently outlined our strategy to double our net revenues to over $2.1 billion by 2013 and our second quarter performance is indicative of the increased demand for the Under Armour Brand that will drive us there. We continue to be the thought leaders in all things performance, building off of successes like our launch of Charged Cotton and the development of our next product franchise, Storm Fleece. Our brand communication will expand in the coming months as we build our voice in footwear with Micro G cushioning technology. We will also begin to implement compelling new shop-in-shop formats with our existing retail partners. Two-thousand-eleven is a year where we are on the offensive to better meet the high expectations of our consumers, and we will continue to invest in operational initiatives that will help build a multi-billion dollar global platform.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 32.1%, with the biggest boost coming in the most recent quarter when revenue rose 42.2% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 69.3% and in the fourth quarter of the last fiscal year, the figure rose 51%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by 7 cents in the fourth quarter of the last fiscal year, and by 8 cents in the third quarter of the last fiscal year.

Gross margin shrank 2.5 percentage points to 46.3%. The contraction appeared to be driven by increased costs, which rose 49.3% from the year earlier quarter while revenue rose 42.2%.

Competitors to Watch: Columbia Sportswear Company (NASDAQ:COLM), Crocs (NASDAQ:CROX), Deckers Outdoor (NASDAQ:DECK), Skechers (NYSE:SKX), K-Swiss (NASDAQ:KSWS), Steven Madden (NASDAQ:SHOO), The Timberland Company (NYSE:TBL), LaCrosse Footwear (NASDAQ:BOOT), Phoenix Footwear (AMEX:PXG), Foot Locker (NYSE:FL), The Finish Line (NASDAQ:FINL) and Nike Inc. (NYSE:NKE).

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(Source: Xignite Financials)

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