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Net revenues up 22% at Under Armour in Q3
27 Oct '10
5 min read
For the first nine months of 2010, net revenues increased 20% to $762.8 million compared with $634.2 million in the prior year. Net income for the first nine months of 2010 increased 44% to $45.5 million compared with $31.6 million in the same period of 2009. Diluted earnings per share for the first nine months of 2010 increased 44% to $0.89 compared with $0.62 per share in the prior year's period.
Balance Sheet Highlights
Cash and cash equivalents increased 43% to $133.9 million at September 30, 2010 compared with $93.4 million at September 30, 2009. The Company had no borrowings outstanding under its $200 million revolving credit facility at September 30, 2010. Inventory at quarter-end increased 28% to $196.2 million compared with $152.8 million at September 30, 2009. Net accounts receivable increased 20% to $174.2 million at September 30, 2010 compared with $145.0 million at September 30, 2009.
Outlook
The Company had previously anticipated 2010 annual net revenues in the range of $990 million to $1.01 billion, an increase of 16% to 18% over 2009, and 2010 diluted earnings per share for the full year of $1.11 to $1.13, an increase of 21% to 23% over 2009. Based on the third quarter results and improved visibility for the full year, the Company now expects 2010 annual net revenues in the range of $1.030 billion to $1.035 billion, an increase of 20% to 21% over 2009.
The Company also expects 2010 diluted earnings per share in the range of $1.23 to $1.24, an increase of 34% to 35% over 2009. The updated earnings outlook reflects a full year effective tax rate of approximately 39.2%. Based on current visibility, the Company expects both 2011 annual net revenues and 2011 diluted earnings per share to grow at the higher end of its long-term growth target of 20%-25%.
Mr. Plank concluded, "We are excited about the $1 billion net revenue milestone in 2010 and remain committed to taking the next step toward becoming a multi-billion dollar, global brand. To reach our goals we must remain disciplined in investing to grow the business, not just investing to defend. Important steps include the evolution of our current ColdGear product, the introduction of our first basketball shoes this past weekend, and leading the market once again with an innovative new apparel launch in early 2011."
Balance Sheet Highlights
Cash and cash equivalents increased 43% to $133.9 million at September 30, 2010 compared with $93.4 million at September 30, 2009. The Company had no borrowings outstanding under its $200 million revolving credit facility at September 30, 2010. Inventory at quarter-end increased 28% to $196.2 million compared with $152.8 million at September 30, 2009. Net accounts receivable increased 20% to $174.2 million at September 30, 2010 compared with $145.0 million at September 30, 2009.
Outlook
The Company had previously anticipated 2010 annual net revenues in the range of $990 million to $1.01 billion, an increase of 16% to 18% over 2009, and 2010 diluted earnings per share for the full year of $1.11 to $1.13, an increase of 21% to 23% over 2009. Based on the third quarter results and improved visibility for the full year, the Company now expects 2010 annual net revenues in the range of $1.030 billion to $1.035 billion, an increase of 20% to 21% over 2009.
The Company also expects 2010 diluted earnings per share in the range of $1.23 to $1.24, an increase of 34% to 35% over 2009. The updated earnings outlook reflects a full year effective tax rate of approximately 39.2%. Based on current visibility, the Company expects both 2011 annual net revenues and 2011 diluted earnings per share to grow at the higher end of its long-term growth target of 20%-25%.
Mr. Plank concluded, "We are excited about the $1 billion net revenue milestone in 2010 and remain committed to taking the next step toward becoming a multi-billion dollar, global brand. To reach our goals we must remain disciplined in investing to grow the business, not just investing to defend. Important steps include the evolution of our current ColdGear product, the introduction of our first basketball shoes this past weekend, and leading the market once again with an innovative new apparel launch in early 2011."
Under Armour Inc
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