Under Armour Earnings Up, Footwear Down

Under Armour Earnings Up, Footwear Down
Inside an Under Armour store.

Although its footwear sales slowed in the quarter, Under Armour Inc. still managed to post a surprising 5 percent increase in profit for the period.
The Baltimore-based company reported second-quarter earnings of $1.44 million, or 3 cents a share, 5 cents above consensus amongst analysts. That compares with earnings of $1.38 million, or 3 cents a share, in the second quarter last year.
Under Armour’s second-quarter sales totaled $164.6 million, up 5 percent from $156.7 during the year-ago period. Apparel sales grew 17 percent to $112 million, but revenue from footwear declined by 18 percent to $37.5 million.
For the first half of the year, Under Armour’s net income grew 27 percent to $5.4 million, or 11 cents a diluted share, versus $4.2 million, or 8 cents, in the first half of 2008. Sales increased by 16 percent to $364.6 million, from $314 million last year.
Based on its second-quarter results, the company now expects its full-year diluted earnings per share to range from 80 cents to 82 cents, while sales should total $810 million. Under Armour also expects its 2009 sales, general and administrative expenses to grow by a percentage in the low teens.

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