Under Armour (UA) Tops Q2 EPS by 2c; Raises Outlook

July 25, 2013 7:11 AM EDT Send to a Friend
Under Armour (NYSE: UA) reported Q2 EPS of $0.16, $0.02 better than the analyst estimate of $0.14. Revenue for the quarter came in at $455 million versus the consensus estimate of $448.91 million.

Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "We continued to create great excitement in the marketplace during the second quarter through innovative design across all platforms – apparel, footwear and accessories – speaking loudly to the next generation of Under Armour athletes. While we continue to see great momentum in our apparel business, we are demonstrating share gains in footwear on the field with baseball and football cleats, as well as building upon our momentum in running footwear with foundational platforms like UA Spine. This continued execution against our athlete's demanding expectations helped drive net revenues growth in excess of 20% for the 13th consecutive quarter."

Updated 2013 Outlook
The Company had previously anticipated 2013 net revenues in the range of $2.21 billion to $2.23 billion, representing growth of 21% to 22% over 2012, and 2013 operating income in the range of $256 million to $258 million, representing growth of 23% to 24% over 2012. Based on current visibility, the Company now expects 2013 net revenues in the range of $2.23 billion to $2.25 billion, representing growth of 22% to 23% over 2012, and 2013 operating income in the range of $258 million to $260 million, representing growth of 24% to 25% over 2012. The Company now anticipates an effective tax rate of 40.0% to 41.0% for the full year, compared to prior full year guidance of 39.0% to 39.5% and 36.7% for 2012. The Company continues to anticipate fully diluted weighted average shares outstanding of approximately 108 million to 109 million for 2013.

Mr. Plank concluded, "We are set up a for a strong second half of the year which we recently kicked off through the debut of our Global Brand Holiday, 'Ready for August.' This is the second chapter in the three Brand Holidays we will deliver this year and tells the story of high school football in the U.S. and futbol globally. In conjunction with this global campaign, we debuted Speedform, a revolutionary running shoe actually built in a bra factory that features a non-traditional seamless heel cup that will help redefine fit in the category. We are also building on our leadership position in baselayer this fall with our latest innovation, ColdGear® Infrared, allowing athletes to stay warmer, longer. These exciting product introductions, along with the existing platforms we continue to build, highlight the ongoing strength of our product pipeline and increase our conviction in achieving our long-term global ambitions."

For earnings history and earnings-related data on Under Armour (UA) click here.


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