Under Armour Boasts 28% Increase in Q4 Profit on Strong Sales

Spring looks from Under Armour

Spring looks from Under Armour

Baltimore—Under Armour Inc. today sailed into its 13th consecutive quarter of better-than-expected profit (a 28% increase) helped by strong sales in its women’s offerings and particularly in accessories.

For the quarter ended Dec. 31, the athletic apparel, accessories and footwear brand posted net income of $64.2 million, or 59 cents a share, compared with $50.1 million, or 47 cents a share, a year earlier. That surpassed analysts’ estimate of 53 cents.

Sales to Women on the Rise

Net revenue jumped 35% to $682.8 million, ahead of analysts’ estimate for $620 million in sales. Gross margin widened to 51.3% from 50.3% from a year ago.

The company credited its sales growth on new apparel, well-received footwear offerings and a renewed focus on winning over women consumers.

Most of the sales continued to come from North America where sales rose 37% during the quarter. International sales rose, too, up 12% to $37.6 million.

By category, the company’s accessories business posted a 52% increase to $545.5 million. Its apparel sales rose 35% and footwear was up 24%.

According to CEO Kevin Plank, Under Armour see increasing opportunity in women’s products since women are increasingly wearing athletic wear outside of the gym.

“We think the reality of this shift is more permanent than some may expect …,” Plank said told analysts on a conference call.

As for its 2014 sales, Under Armour projected $2.84 billion to $2.87 billion, compared with analysts’ estimate for $2.77 billion.

 

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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com