Under Armour profit beats estimates on higher footwear sales
Apparel maker Under Armour Inc reported a better-than-expected profit as demand rose across its footwear category, and raised its full-year sales forecast.
The company, whose sales have benefited from new styles such as ColdBlack and Armour Bra, raised its full-year revenue forecast to $1.80 billion-$1.82 billion from $1.78billion-$1.80 billion.
Under Armour also raised its 2012 operating income outlook to $205 million-$207 million.
Second-quarter earnings rose to $7 million, or 6 cents per share, from $6 million, or 6 cents per share, a year earlier.
Sales rose 27 percent to $369 million.
Sales in the footwear category, which contributes about 19 percent of total revenue, rose 44 percent.
Analysts on average had expected the company to earn 5 cents on revenue of $358 million, according to Thomson Reuters I/B/E/S.
However, gross margin for the quarter fell to 45.9 percent from 46.3 percent reflecting less favorable North American apparel and accessories product margins.
Shares of Baltimore, Maryland-based Under Armour closed at $48.38 on Monday on the New York Stock Exchange. They were up 7 percent in premarket trading.
 Photo: Under Armour |
The company, whose sales have benefited from new styles such as ColdBlack and Armour Bra, raised its full-year revenue forecast to $1.80 billion-$1.82 billion from $1.78billion-$1.80 billion.
Under Armour also raised its 2012 operating income outlook to $205 million-$207 million.
Second-quarter earnings rose to $7 million, or 6 cents per share, from $6 million, or 6 cents per share, a year earlier.
Sales rose 27 percent to $369 million.
Sales in the footwear category, which contributes about 19 percent of total revenue, rose 44 percent.
Analysts on average had expected the company to earn 5 cents on revenue of $358 million, according to Thomson Reuters I/B/E/S.
However, gross margin for the quarter fell to 45.9 percent from 46.3 percent reflecting less favorable North American apparel and accessories product margins.
Shares of Baltimore, Maryland-based Under Armour closed at $48.38 on Monday on the New York Stock Exchange. They were up 7 percent in premarket trading.
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