Under Armour, Inc.'s net revenues increased 36.0 percent in the first quarter of 2014 to $642 million compared with net revenues of $472 million in the prior year's period.?Net income surged 73.3 percent in the first quarter of 2014 to $13.5 million, or 6 cents a share, compared with $7.8 million, or 4 cents, in the prior year's period, exceeding Wall Street's consensus estimate of 4 cents a share.
Diluted earnings per share calculations for both periods reflect the company's two-for-one stock split effective April 14, 2014.
First quarter apparel net revenues increased 33 percent to $459 million compared with $346 million in the same period of the prior year, including expanded offerings in categories such as golf, hunting, training, studio, and basketball.?First quarter footwear net revenues increased 41 percent to $114 million from $81 million in the prior year's period, led by new introductions in running including SpeedForm Apollo.?First quarter accessories net revenues increased 43 percent to $52 million from $36 million in the prior year's period, primarily driven by headwear.?Direct-to-Consumer net revenues, which represented 26 percent of total net revenues for the first quarter, grew 33 percent year-over-year.?International net revenues, which represented 9 percent of total net revenues for the first quarter, grew 79 percent year-over-year.
Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "We are off to a great start in 2014 driven by broad-based strength across our Apparel, Footwear, and International growth drivers.?Our formula for driving newness and innovation in Apparel continues to resonate with consumers and helped deliver over 30 percent growth for our largest product category.?That same model is contributing to success in Footwear, where we accelerated growth in running and brought award-winning product to the marketplace with the SpeedForm Apollo.?Finally, we enhanced our ability to reach the global athlete, including the recent expansion of our brand in key Latin American markets, as well as strong gains across Europe and Asia."
Gross margin for the first quarter of 2014 was 46.9 percent compared with 45.9 percent in the prior year's quarter, primarily driven by supply chain enhancements and a favorable sales mix in the Factory House outlet business.?Selling, general and administrative expenses as a percentage of net revenues were 42.7 percent in the first quarter of 2014 compared with 43.1 percent in the prior year's period.?First quarter operating income increased to $27 million compared with $13 million in the prior year's period.
