By
Reuters
Reuters
Published
Jul 24, 2012
Jul 24, 2012
Under Armour profit beats estimates on higher footwear sales
By
Reuters
Reuters
Published
Jul 24, 2012
Jul 24, 2012
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.
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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