Under Armour Inc. (NYSE:UA) reported higher profit for the fourth quarter as revenue showed growth. 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. UA beat the mean analyst estimate of 60 cents per share. Analysts were expecting revenue of $403.6 million.
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.”
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).
McCormick & Company Inc. (NYSE:MKC) in the fourth quarter as profit dropped from a year earlier. Net income for McCormick & Company Inc. fell to $131.7 million (98 cents per share) vs. $133.7 million (99 cents per share) a year earlier. This is a decline of 1.5% from the year earlier quarter. Revenue rose 13% to $1.11 billion from the year earlier quarter. MKC beat the mean analyst estimate of 97 cents per share. Analysts were expecting revenue of $1.09 billion.
“At McCormick, 2011 was a year of significant accomplishment. We completed three acquisitions, and the integration of these businesses has gone well. These acquisitions are accelerating our sales and profit growth and have expanded our presence in emerging markets and across several growth platforms. In 2012 we expect at least 13% of sales to come from emerging markets, up from 6% in 2006. Innovation is another key avenue of growth and new products launched in the past three years added 9% to sales in 2011. Cost savings in 2011 from our Comprehensive Continuous Improvement program – CCI – totaled $65 million, ahead of our initial target. Along with our pricing actions, these cost savings provided an offset to increased material costs and also helped fuel a $20 million increase in brand marketing support. I want to recognize employees throughout McCormick for these achievements that drove our growth and helped us navigate a period of volatility in our material costs and weakness in the broad economic environment. During 2011, McCormick shareholders received nearly $150 million of the cash we generated through dividend payments, and in November, the Board approved an 11% increase in the quarterly dividend which was our 26th consecutive year of increase.”
“Consumers around the world continue to demand great taste, and we are meeting this demand with our passion for flavor, innovative new products, in-store merchandising and creative meal ideas. Our outlook is for solid profit growth in 2012 driven by higher sales and further cost savings. We expect the weak economy and volatile material costs to persist, and we intend to continue adapting our pricing actions and marketing programs. We also plan to offset a portion of increased costs and fuel higher brand marketing support with our CCI cost savings and have set a goal to achieve at least $40 million in 2012.”
Competitors to Watch: TreeHouse Foods Inc. (NYSE:THS), Campbell Soup Company (NYSE:CPB), H.J. Heinz Company (NYSE:HNZ), ConAgra Foods, Inc. (NYSE:CAG), Vitamin Spice (VTMS), General Mills, Inc. (NYSE:GIS), Ralcorp Holdings, Inc. (NYSE:RAH), The Hain Celestial Group, Inc. (NASDAQ:HAIN), The J.M. Smucker Company (NYSE:SJM), and Bridgford Foods Corp. (NASDAQ:BRID).
To contact the reporter on this story: Derek Hoffman at firstname.lastname@example.org
To contact the editor responsible for this story: Damien Hoffman at email@example.com