Under Armour Apparel net revenues goes up for Q1

30 Apr '08

4 min read

The Company had previously stated that it would be shifting a substantial portion of its full year marketing spend to the first half of the year.

Marketing expense for the first quarter of 2008 was 17.8% of net revenues compared to 11.1% in the prior year's period. The Company still expects to invest in its marketing budget at the high-end of the range of 12% to 13% of net revenues for the full year.

The Company's long-term growth targets are 20% to 25% for the top and bottom lines. Based on the continued strength of the Brand and the Company's performance in the first quarter, the Company is reiterating its 2008 net revenues outlook.

For 2008, the Company continues to expect annual net revenues in the range of $765 million to $775 million, an increase of 26% to 28% over 2007.

The Company had previously estimated a full year gross margin improvement of 40 to 50 basis points in 2008. However, based on the most recent estimates, full year gross margins for 2008 are expected to decrease 30 basis points year-over-year to 50.0%.

As a result, the Company is revising its 2008 income from operations outlook to $103.5 million to $104.5 million, an increase of 20% to 21% over 2007. The Company had previously estimated 2008 income from operations to be in the range of $108.5 million to $110.5 million.

"At Under Armour, we have a culture of growth balanced with a culture of profitability," stated Wayne Marino, Chief Operating Officer.

"As we map out the future growth of this Brand, we will continue to make the appropriate level of investment in our team and our infrastructure while continuously striving towards greater operational execution."

Mr. Plank concluded, "On May 3rd, we enter the next chapter of our growth story with the launch of our Performance Training footwear.

Whether it's creating the category as we did with compression or reinventing the category as we are doing with Performance Training, our proven ability to bring athletes someplace new and generate excitement for both our retail partners and our consumer is at the core of what we do.

We have invested much to get us to the point of launching our footwear this Saturday, and we must continue to invest if we are to realize the opportunities for growth in new categories and new regions. We continue to have confidence in the power of our Brand and our ability to execute against those opportunities."

Under Armour Inc

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