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Under Armour posts 24% top line growth in Q4
28 Jan '10
5 min read
Apparel net revenues increased 12.6% to $651.8 million compared with $578.9 million in the same period of the prior year. Driven by the Company's entrance into Running Footwear, footwear net revenues increased 60.6% to $136.2 million in 2009 compared with $84.8 million in 2008. Direct-to-Consumer net revenues increased 49.5% during the full year.
Operating income increased 10.9% for the year and totaled $85.3 million compared with $76.9 million in 2008. Gross margin for 2009 was 48.2% compared with 48.9% in the prior year primarily due to a higher proportion of footwear sales and increased liquidations to third parties. Selling, general and administrative expenses were 38.2% of net revenues in 2009 compared with 38.3% of net revenues in the same period of the prior year. Marketing expenses increased $11.2 million in 2009 and were 12.4% of net revenues compared with 13.1% in 2008.
Balance Sheet Highlights
Cash and cash equivalents increased $85.3 million to $187.3 million at December 31, 2009 compared with $102.0 million at December 31, 2008. The Company had no borrowings outstanding under the $200 million revolving credit facility at December 31, 2009. Inventory at year-end decreased 18.5% to $148.5 million compared with $182.2 million at December 31, 2008. Net accounts receivable decreased 2.4% to $79.4 million at December 31, 2009 compared with $81.3 million at December 31, 2008.
Brad Dickerson, Chief Financial Officer of Under Armour, Inc., stated, "2009 was a year of substantive improvement in our ability to manage our business, specifically around our balance sheet. We increased our cash position by 84 percent and improved inventory turns while making the capital and operational investments in systems and people to drive long-term growth. Growing our annual earnings 22 percent on an 18 percent increase in revenues illustrates the organizational discipline we have developed to leverage the abundant opportunities that exist for the Company."
Outlook for 2010
The Company had previously anticipated 2010 net revenues and EPS to grow in the high-single to low-double-digits. The Company now expects 2010 annual net revenues in the range of $945 million to $960 million, an increase of 10% to 12% over 2009. The Company expects 2010 diluted earnings per share for the full year to grow in line with net revenue growth. Further, the Company expects an effective tax rate of approximately 42.7% for the full year. The Company anticipates fully diluted weighted average shares outstanding of approximately 51.1 million to 51.3 million for 2010.
Operating income increased 10.9% for the year and totaled $85.3 million compared with $76.9 million in 2008. Gross margin for 2009 was 48.2% compared with 48.9% in the prior year primarily due to a higher proportion of footwear sales and increased liquidations to third parties. Selling, general and administrative expenses were 38.2% of net revenues in 2009 compared with 38.3% of net revenues in the same period of the prior year. Marketing expenses increased $11.2 million in 2009 and were 12.4% of net revenues compared with 13.1% in 2008.
Balance Sheet Highlights
Cash and cash equivalents increased $85.3 million to $187.3 million at December 31, 2009 compared with $102.0 million at December 31, 2008. The Company had no borrowings outstanding under the $200 million revolving credit facility at December 31, 2009. Inventory at year-end decreased 18.5% to $148.5 million compared with $182.2 million at December 31, 2008. Net accounts receivable decreased 2.4% to $79.4 million at December 31, 2009 compared with $81.3 million at December 31, 2008.
Brad Dickerson, Chief Financial Officer of Under Armour, Inc., stated, "2009 was a year of substantive improvement in our ability to manage our business, specifically around our balance sheet. We increased our cash position by 84 percent and improved inventory turns while making the capital and operational investments in systems and people to drive long-term growth. Growing our annual earnings 22 percent on an 18 percent increase in revenues illustrates the organizational discipline we have developed to leverage the abundant opportunities that exist for the Company."
Outlook for 2010
The Company had previously anticipated 2010 net revenues and EPS to grow in the high-single to low-double-digits. The Company now expects 2010 annual net revenues in the range of $945 million to $960 million, an increase of 10% to 12% over 2009. The Company expects 2010 diluted earnings per share for the full year to grow in line with net revenue growth. Further, the Company expects an effective tax rate of approximately 42.7% for the full year. The Company anticipates fully diluted weighted average shares outstanding of approximately 51.1 million to 51.3 million for 2010.
Under Armour Inc
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