News Flash

Apparel net revenues up at Under Armour

28 Jul '11

5 min read

For the first six months of 2011, net revenues increased 39.1% to $604.0 million compared with $434.2 million in the prior year. Net income for the first six months of 2011 increased 72% to $18.4 million compared with $10.7 million in the same period of 2010. Diluted earnings per share for the first six months of 2011 were $0.35 on weighted average common shares outstanding of 52.5 million compared with $0.21 per share on weighted average common shares outstanding of 51.0 million in the prior year.

Balance Sheet Highlights
The Company had cash and cash equivalents of $119.7 million and had no borrowings outstanding under its $300 million revolving credit facility at June 30, 2011. Inventory at June 30, 2011 increased 74% to $311.1 million compared with $179.2 million at June 30, 2010. As the Company had previously indicated, the inventory growth reflects in part the Company's efforts to better service anticipated consumer demand in 2011, as well as the transition of the Company's hats and bags business in-house and an earlier planned build of ColdGear apparel for the 2011 Fall/Winter season.

Updated 2011 Outlook
The Company had previously anticipated 2011 net revenues in the range of $1.37 billion to $1.39 billion, representing growth of 29% to 31% over 2010, and 2011 operating income in the range of $149 million to $153 million, representing growth of 33% to 36% over 2010. Based on current visibility, the Company now expects 2011 net revenues in the range of $1.42 billion to $1.44 billion, representing growth of 33% to 35% over 2010, and 2011 operating income in the range of $155 million to $160 million, representing growth of 38% to 42% over 2010. The Company continues to expect an effective tax rate of approximately 40.0% for the full year compared to an effective tax rate of 37.1% for 2010. Finally, the company anticipates fully diluted weighted average shares outstanding of approximately 52.5 million to 52.7 million for 2011, unchanged from prior guidance.

Mr. Plank concluded, "The UA Brand has never been stronger and the momentum we are seeing is broad-based across gender and distribution. Our rapid growth is demonstrative of the power of our brand and we're focused on building our operational platform to better align with the long-term opportunity for Under Armour."

Under Armour Inc

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