Under Armour posts 24% top line growth in Q4
Under Armour, Inc. announced financial results for the fourth quarter and year ended December 31, 2009. Net revenues increased 24.0% in the fourth quarter of 2009 to $222.2 million compared with net revenues of $179.3 million in the fourth quarter of 2008. Diluted earnings per share for the fourth quarter of 2009 was $0.30 on weighted average common shares outstanding of 50.8 million compared with $0.17 per share on weighted average common shares outstanding of 50.4 million in the fourth quarter of the prior year.
Fourth quarter apparel net revenues increased 26.0% to $192.1 million compared with $152.4 million in the same period of the prior year, driven by growth in Men's, Women's, and Youth apparel. Footwear net revenues were $8.7 million in the fourth quarter of 2009 compared with $9.2 million in the same period of the prior year. Direct-to-Consumer net revenues grew 52.9% year-over-year during the fourth quarter.
Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "2009 was a great testament to the expanding power of the Under Armour Brand with athletes. We reached new consumers across the sports spectrum, while investing in our key growth drivers including Women's, Footwear and Direct-to-Consumer, and took important steps in building a stable foundation for long-term growth."
For the fourth quarter, operating income grew 17.8% to $26.9 million compared with $22.9 million in the prior year's period. Gross margin for the fourth quarter of 2009 increased to 51.4% compared with 50.7% in the prior year's quarter primarily due to the increased higher margin sales in Direct-to-Consumer.
Selling, general and administrative expenses were 39.3% of net revenues in the fourth quarter of 2009 compared with 37.9% of net revenues in the same period of the prior year. The increase was primarily driven by higher personnel costs and continued investments in Direct-to-Consumer. Marketing expense for the fourth quarter of 2009 was 10.8% of net revenues versus 11.0% in the prior year's period.
Mr. Plank concluded, "Our strong apparel results in the fourth quarter are great evidence that our Brand is resonating with new consumers. While we continue to meaningfully lead the performance apparel market in innovation, we are also bringing new consumers into the performance category through our expanded presence with our wholesale partners and our own Direct-to-Consumer channel."
Review of Full Year Operating Results
Net revenues for the full year 2009 increased 18.1% to $856.4 million from $725.2 million in 2008, ahead of the Company's previously provided outlook of $830 million to $835 million. Diluted earnings per share for the full year increased 21.1% to $0.92 on weighted average common shares outstanding of 50.7 million compared with $0.76 per share on weighted average common shares outstanding of 50.3 million in 2008, ahead of the Company's previously provided outlook of $0.85 to $0.87.