Under Armour Inc. on Tuesday posted a surprise second-quarter profit on improved apparel revenues.
In the three months ended June 30, net income grew 4.7 percent to $1.44 million from $1.38 million in last year’s quarter, translating into 3 cents a share for both periods. The Baltimore-based athleticwear manufacturer’s sales in the quarter gained 5.1 percent to $164.6 million from $156.7 million in 2008.
On average, analysts polled by Yahoo Finance had expected a loss of 3 cents a share on revenues of $159.1 million.
Under Armour’s net apparel revenues in the quarter, which totaled $112 million, were 16.5 percent greater than the year before. Footwear sales fell 18.5 percent in the period to $37.5 million.
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Chairman and chief executive officer Kevin Plank said on a call with analysts that the company made double-digit sales gains in men’s, women’s and youth apparel.
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“I think the way that we are currently positioned is as a premium, and I think we are seeing and feeling the benefits of that,” Plank said.
“There is not a lot of Under Armour on sale in the marketplace compared to what other brands are doing,” he said. “So a lot of the [comparable-store sales] that you are hearing about, the success that other people are having, is really being driven by price. And I think what you’re seeing drive the Under Armour brand is brand and great product.”
Along with the quarterly earnings, the company issued guidance for the first time this year, forecasting full-year earnings of 80 cents to 82 cents a diluted share on revenues of about $810 million. On average, analysts had expected earnings per share of 79 cents on sales of $804.9 million this year.
Shares of Under Armour closed at $25.43, down 19 cents or 0.7 percent, after the earnings report.
For the first half of fiscal 2009, net income grew 27.2 percent to $5.4 million, or 11 cents a share, from $4.2 million, or 8 cents a share, last year.
Revenues in the six months climbed 16.1 percent to $364.7 million from $314 million last year.