• Shares of Under Armour were racing higher
today, up as much as 16% after the
sportswear maker released a stellar second-
quarter earnings report this morning.
• The apparel-maker again blew past analyst
estimates as revenue jumped 34% to $610
million, crushing the consensus at $574
million. Earnings per share, meanwhile, was
even with a year ago at $0.08, due to
increased marketing and innovation costs, but
beat expectations by a penny.
• Growth was solid across the
board as apparel sales, the bulk
of the company, grew 35%,
footwear was up 34%, and
accessories, the smallest
component, increased 18%.
International sales were also a
bright spot, improving 80% in
• CEO Kevin Plank credited the company’s
“broad-based momentum,” noting the success
in particular of footwear and international.
Though marketing expenses cooled profit
growth, gross margin still expanded from
48.3% to 49.2%.
• Further encouraging investors,
Under Armour lifted its
guidance for the year. It now
expects revenue of $2.98 billion
to $3 billion, up from $2.88
billion to $2.91 billion, and sees
operating income range of $343
million to $345 million, better
than its previous forecast of
$331 million to $334 million.
• Under Armour’s brand appeal and innovative
products have helped it deliver five straight
earnings beats, and the company looks poised
for more strong growth as it’s still less than a
quarter the market value of Nike.
• Shares are pricey at a P/E of 90, but Under
Armour has a long growth road ahead of it,
especially outside of the U.S., where rival Nike
makes the majority of its money. If the company
can keep growing sales faster than expectations,
shares will continue to move higher.
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