Under Armour Q2 net revenue up by 24%
Under Armour, Inc. announced financial results for the second quarter ended June 30, 2010. Net revenues increased 24% in the second quarter of 2010 to $204.8 million compared with net revenues of $164.6 million in the second quarter of 2009.
Diluted earnings per share for the second quarter of 2010 grew to $0.07 on weighted average common shares outstanding of 51.1 million compared with $0.03 per share on weighted average common shares outstanding of 50.6 million in the second quarter of the prior year.
Second quarter apparel net revenues increased 34% to $150.2 million compared with $112.0 million in the same period of the prior year, driven primarily by strong growth in both the Men's and Women's apparel businesses. Direct-to-Consumer net revenues grew 60% year-over-year during the second quarter driven by new Factory House store growth, strong retail comparable store sales, and sustained strength with the Web business.
Footwear net revenues in the second quarter of 2010 were $35.8 million compared with $37.5 million in the second quarter of 2009. The Company had previously indicated that Running and Training footwear revenues were expected to decline in 2010 compared with 2009.
Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "The Under Armour Brand continues to resonate with consumers, demonstrated by consecutive quarters of 30%+ apparel growth. By addressing the athlete's needs through a combination of technology, fit and design, we have become the dominant player in Men's performance apparel and are being embraced by a growing number of female athletes each and every day. This leadership will provide the framework for our continued push into new and expanded categories, distribution, and geographies."
For the second quarter, operating income rose 104% to $6.9 million compared with $3.4 million in the prior year's period. Gross margin for the second quarter of 2010 increased to 48.8% compared with 44.8% in the prior year's quarter primarily due to increased sales in the higher margin Direct-to-Consumer channel, improved apparel mix and sourcing, and lower markdowns.
Selling, general and administrative expenses as a percentage of net revenues were 45.4% in the second quarter of 2010 compared with 42.7% in the prior year's period as a result of increased investments in product creation and supply chain as well as continued expansion of the Factory House stores. Marketing expense for the second quarter of 2010 was 13.4% of net revenues compared with 13.3% in the prior year.
For the first six months of 2010, net revenues increased 19.1% to $434.2 million compared with $364.6 million in the prior year. Net income for the first six months of 2010 increased 98% to $10.7 million compared with $5.4 million in the same period of 2009. Diluted earnings per share for the first six months of 2010 was $0.21 on weighted average common shares outstanding of 51.0 millioncompared with $0.11 per share on weighted average common shares outstanding of 50.5 million in the prior year.