Under Armor 1Q revenue, profit up; raises guidance
Increased sales of its athletic apparel and a boost in its direct-to-consumer business helped Under Armour Inc. (NYSE:UA) report higher revenue and profit for the first quarter 2011.
The Baltimore-based performance apparel and footwear company reported first-quarter revenue, ended March 31, 2011, up 36 percent to $312.7 million from a year ago. Under Armour’s net income in the first quarter 2011 income grew to $12.1 million, or $0.23 per diluted share, up from $7.2 million, or $0.14 per diluted share, during the same period in 2010.
Under Armour’s apparel sales rose 34 percent to lead growth over its smaller footwear sales segment, which rose 20 percent. The company said its new Charged Cotton products were selling well. Direct-to-consumer sales, via the company’s website and Under Armour branded stores, rose 53 percent year-over-year to account for 20 percent of total revenue.
Company officials said they anticipate increased demand in 2011, which was reflected in a higher than market-expected rise in inventory levels – up 68 percent to $248.6 million. But some investors weren’t convinced, and the stock traded down 9 percent mid-day Tuesday, despite the other good figures.
Under Armour increased its 2011 revenue projections from a previous range of $1.33 billion to $1.35 billion, to a range of $1.37 billion to $1.39 billion, which would represent growth of 29 to 31 percent over 2010.
Puma 1Q earnings up, projects record 3 billion euro revenue in 2011
Puma AG reported higher sales and profit for the first quarter and said it expects to surpass the EUR 3 billion mark (USD $4.4 billion) for 2011 revenue.
The Germany-based sports and workout gear company reported revenue of EUR 773.4 million (USD $1.13 billion), or about $1.28 billion, for the first quarter – up 13.2 percent from a year ago. Sales were strongest in the Americas, up 19.9 percent.
Puma’s first-quarter 2011 net profit rose 7.1 percent to EUR 77.7 million (USD $113.2 million), up from EUR 75.2 million (USD $109.6 million) a year ago.
Looking ahead, the company kept its net earnings estimates stable – in the mid-single digit percentage growth range – “taking into account the risk of higher input prices in the form of raw materials and wages for the second half of the year,” while increasing its 2011 sales target total to EUR 3 billion.
--Compiled by David Clucas
(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of April 26.)
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