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Under Armour posts preliminary financial results for Q4 2008
16 Jan '09
3 min read
Under Armour Inc announced preliminary financial results for the fourth quarter and full year ended December 31, 2008.
Based on preliminary estimates for the fourth quarter of 2008, the Company now anticipates net revenues in the range of $179 million to $180 million. Income from operations for the fourth quarter is estimated to be approximately $22 million to $24 million and diluted earnings per share is expected to be in the range of $0.16 to $0.18.
Given these preliminary fourth quarter estimates, the Company now expects full year 2008 revenues in the range of $725 million to $726 million compared with net revenues of $606.6 million in 2007, representing growth of approximately 20%. Full year 2008 income from operations is estimated to be approximately $76 million to $78 million compared with $86.3 million in 2007. Diluted earnings per share for 2008 is anticipated to be in the range of $0.76 to $0.78 compared with $1.05 for the full year in 2007. The Company had previously anticipated 2008 net revenues in the range of $750 million to $765 million and 2008 income from operations in the range of $97.5 million to $104.5 million.
Fourth quarter 2008 net revenues were primarily impacted by lower than anticipated at-once orders and higher than anticipated cancellations in the U.S. wholesale business as well as lower than anticipated web sales, resulting from the weaker retail environment. The impact to fourth quarter income from operations and diluted earnings per share was primarily driven by the lower than expected sales volumes.
Cash and cash equivalents are estimated to be approximately $100 million at December 31, 2008 compared with $40.6 million at December 31, 2007. The Company has approximately $25 million in borrowings outstanding under its $100 million revolving credit facility at December 31, 2008. Inventory at year-end, which includes approximately $15 million of running footwear to support the product launch on January 31, 2009, is expected to increase approximately 10% from the balance reported at December 31, 2007.
Kevin Plank, Chairman and CEO of Under Armour Inc. stated, "We are a growth company, and we remain focused on developing and executing our strategy to deliver both near-term and long-term value for our shareholders. Our brand strength, connection with the consumer, and our demonstrated ability to generate excitement through the introduction of compelling performance products give us confidence in the opportunities ahead. Understanding the current environment, we will focus greater precision on cost management and prioritize our investments for the long-term growth of the Brand."
Under Armour's fourth quarter and full year financial results remain subject to additional closing procedures. The Company will report the final results of its fourth quarter ended December 31, 2008 on Thursday, January 29, 2009 at 7:00 a.m. ET.
Under Armour is a leading developer, marketer and distributor of branded performance apparel, footwear and accessories. The brand's moisture-wicking synthetic fabrications are engineered in many different designs and styles for wear in nearly every climate to provide a performance alternative to traditional natural fiber products.
Based on preliminary estimates for the fourth quarter of 2008, the Company now anticipates net revenues in the range of $179 million to $180 million. Income from operations for the fourth quarter is estimated to be approximately $22 million to $24 million and diluted earnings per share is expected to be in the range of $0.16 to $0.18.
Given these preliminary fourth quarter estimates, the Company now expects full year 2008 revenues in the range of $725 million to $726 million compared with net revenues of $606.6 million in 2007, representing growth of approximately 20%. Full year 2008 income from operations is estimated to be approximately $76 million to $78 million compared with $86.3 million in 2007. Diluted earnings per share for 2008 is anticipated to be in the range of $0.76 to $0.78 compared with $1.05 for the full year in 2007. The Company had previously anticipated 2008 net revenues in the range of $750 million to $765 million and 2008 income from operations in the range of $97.5 million to $104.5 million.
Fourth quarter 2008 net revenues were primarily impacted by lower than anticipated at-once orders and higher than anticipated cancellations in the U.S. wholesale business as well as lower than anticipated web sales, resulting from the weaker retail environment. The impact to fourth quarter income from operations and diluted earnings per share was primarily driven by the lower than expected sales volumes.
Cash and cash equivalents are estimated to be approximately $100 million at December 31, 2008 compared with $40.6 million at December 31, 2007. The Company has approximately $25 million in borrowings outstanding under its $100 million revolving credit facility at December 31, 2008. Inventory at year-end, which includes approximately $15 million of running footwear to support the product launch on January 31, 2009, is expected to increase approximately 10% from the balance reported at December 31, 2007.
Kevin Plank, Chairman and CEO of Under Armour Inc. stated, "We are a growth company, and we remain focused on developing and executing our strategy to deliver both near-term and long-term value for our shareholders. Our brand strength, connection with the consumer, and our demonstrated ability to generate excitement through the introduction of compelling performance products give us confidence in the opportunities ahead. Understanding the current environment, we will focus greater precision on cost management and prioritize our investments for the long-term growth of the Brand."
Under Armour's fourth quarter and full year financial results remain subject to additional closing procedures. The Company will report the final results of its fourth quarter ended December 31, 2008 on Thursday, January 29, 2009 at 7:00 a.m. ET.
Under Armour is a leading developer, marketer and distributor of branded performance apparel, footwear and accessories. The brand's moisture-wicking synthetic fabrications are engineered in many different designs and styles for wear in nearly every climate to provide a performance alternative to traditional natural fiber products.
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