NEW YORK — Propelled by growth in its women’s business, activewear company Under Armour Inc. reported Wednesday that first-quarter earnings soared more than 200 percent to $8.7 million, or 18 cents a share, from $2.5 million, or 5 cents, in the year-ago period.
The results far exceeded analysts’ expectations of 7 cents a share. The company’s stock gained $4.29 to close at $37 Wednesday in New York Stock Exchange trading.
Revenues in the quarter ended March 31 gained 50.7 percent to $87.7 million from $58.2 million, and sales of women’s products climbed 112.1 percent to $21 million from $9.9 million. Licensing revenue grew 65.8 percent to $2.4 million.
“We are particularly pleased with the performance of our women’s category, as it was a standout for the quarter,” Kevin A. Plank, chairman, chief executive officer and president, said in a statement. “Growth in women’s exemplifies our ability to successfully broaden the product line through our innovative marketing and merchandising strategies.”
Under Armour shipped its newly expanded sport bra during the first quarter and has continued to add more categories for women, Plank noted on a conference call with analysts. The company also said it raised its outlook for 2006 based on the strength of the first quarter. UA now expects to notch revenues in the range of $380 million to $390 million, and earnings of about $30 million for the year.
Plank said on the call that UA is focused on four key areas for expansion: growing the core men’s business, continuing to expand new consumer segments like women’s, pushing its international presence and broadening its product portfolio with its recent entry into footwear.
The Baltimore-based brand has had a rapid ascent in the athletic industry in recent years and went public in November. This was its second quarter reporting as a public firm.
UA is also working on shoring up its operations and fiscal management. Gross margins rose significantly in the quarter to 50.5 percent of sales compared with 44.4 percent in the year-ago period, the company said.