NEW YORK — Under Armour, driven by strong demand for its performance apparel and growth in licensed products, reported earnings and sales growth in its first quarter as a public company.
“Our fourth-quarter sales and strong earnings performance topped off an outstanding and eventful year for Under Armour,” the firm’s founder, chairman and president, Kevin A. Plank, said in a statement Tuesday. “The demand for our performance apparel remains very strong and we are pleased that we have been able to grow our core men’s apparel business, while successfully broadening the product offerings our women’s and youth categories.”
For the quarter ended Dec. 31, earnings rose 13.5 percent to $7 million, or 8 cents a share, over profits of $6.1 million, or 15 cents, in the prior-year period. Earnings per share were diluted after Under Armour issued an additional 9.5 million shares in connection with its November IPO, and also included a charge for debt redemption. Analysts on average were expecting 7 cents a share.
Revenues for the quarter jumped 25.3 percent to $87.3 million. Women’s merchandise was a key growth element, rising 59 percent to $16 million in the quarter from $10.6 million in the prior-year period. In a call with analysts on Tuesday, Plank said the company will continue to add experts to its women’s team across all functions of the business, including sales, marketing and product.
Baltimore-based Under Armour has become a darling of the athletic arena with its quick ascent over the last few years. The firm is best known for its tight-fitting performance tops worn by football players, but in recent years it has expanded its product array to include a wide range of sportswear for women, men and children, as well as accessories, outerwear and footwear.
Licensing revenue in the quarter gained 127 percent to $9.8 million from $4.3 million in the 2004 period. Under Armour also has been expanding its international business.
For the year, earnings rose 20.8 percent to $19.8 million, or 36 cents a share, while revenues gained 37 percent to $281 million.