Auriga Maintains a 'Hold' on Under Armour (UA); Raising FY Estimates

April 20, 2012 11:24 AM EDT
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Auriga maintains a 'Hold' on Under Armour, Inc. (NYSE: UA) price target of $90.00.

Analyst, Claire Gallagher, said, "Sales for apparel rose 23%, to $283mm and accounted for 74% of sales. Consensus stood at $277mm. Footwear sales increased 24%, to $64mm. This was inline with street expectations. Accessories sales rose 26%, to $30mm. Consensus was $27m. Q1 gross margins were 45.6%, slightly ahead of consensus of 45.2% and fell 80 bpts versus the prior year. Pressure from North American apparel and accessories product margins was the primary reason for the gross margin decline during the quarter. EBIT margin of 6.3% compared with consensus of 5.8% and our estimate of 6.0%. Inventory increased 30%. This compared with our expectation of a +28% increase in inventory. 2012 Guidance was increased; consensus not likely to change. Revenue is now expected to grow 21-22% versus prior guidance of 20%. EBIT guidance was increased to 25-26% from 25%. Consensus stands at $205mm, +26%. We do not expect a change to consensus for EPS.

For an analyst ratings summary and ratings history on Under Armour, Inc. click here. For more ratings news on Under Armour, Inc. click here.

Shares of Under Armour, Inc. closed at $96.50 yesterday.

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