Under Armour Inc. Earnings: Enjoys Fifth Straight Quarter of Double-Digit Growth

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Under Armour Inc. (NYSE:UA) reported higher profit for the fourth quarter as revenue showed growth. Under Armour is a developer, marketer and distributor of branded performance apparel, footwear and accessories for men, women and youth.

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Under Armour Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Under Armour Inc. rose to $32.6 million (62 cents per share) vs. $22.9 million (44 cents per share) in the same quarter a year earlier. This marks a rise of 41.9% from the year earlier quarter.

Revenue: Rose 33.9% to $403.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: UA beat the mean analyst estimate of 60 cents per share. Analysts were expecting revenue of $403.6 million.

Quoting Management: Kevin Plank, Chairman, CEO, and President of Under Armour, Inc., stated, “We completed a very successful 2011, growing net revenues 38%, the highest overall growth rate since 2007. Our apparel business surpassed the $1 billion mark and we demonstrated our ability to broaden the addressable market for the Brand with the introduction of our premium cotton platform. The strength we continue to see in our apparel and Direct-to-Consumer businesses affords us the ability to continue to make strategic investments in other long-term growth drivers like footwear and international.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 37.9%, with the biggest boost coming in the second quarter when revenue rose 42.3% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 31.9% and in the second quarter, the figure rose 78.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the third quarter, by 3 cents in the second quarter, and by 4 cents in the first quarter.

The company’s cost of sales rose 34.1% from a year earlier. Last quarter, cost of sales was 48.4% of revenue, similar to a year earlier.

Looking Forward: The outlook for the company’s next quarter performance is unfavorable. Estimates have gone down from an average 29 cents per share to 28 cents over the past seven days. The average estimate for the fiscal year is now $1.83 per share, down from $1.85 sixty days ago.

Competitors to Watch: Columbia Sportswear Company (NASDAQ:COLM), Crocs (NASDAQ:CROX), Deckers Outdoor (NASDAQ:DECK), Skechers (NYSE:SKX), K-Swiss (NASDAQ:KSWS), Steven Madden (NASDAQ:SHOO), The Timberland Company (NYSE:TBL), LaCrosse Footwear (NASDAQ:BOOT), Phoenix Footwear (AMEX:PXG), Foot Locker (NYSE:FL), The Finish Line (NASDAQ:FINL) and Nike Inc. (NYSE:NKE).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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