Under Armour, Inc. announced financial results for the first quarter ended March 31, 2013. Net revenues increased 23% in the first quarter of 2013 to $472 million compared with net revenues of $384 million in the prior year's period.
Net income decreased 47% in the first quarter of 2013 to $8 million compared with $15 million in the prior year's period, largely reflecting the planned timing of marketing expenditures. Diluted earnings per share for the first quarter of 2013 were $0.07 compared with $0.14 per share in the prior year's period.
First quarter apparel net revenues increased 22% to $346 million compared with $283 million in the same period of the prior year, driven primarily by the introduction of new Baselayer product and strong sales of Fleece.
First quarter footwear net revenues increased 27% to $81 million from $64 million in the prior year's period, primarily driven by new running styles led by UA Spine Venom. First quarter accessories net revenues increased 22% to $36 million from $30 million in the prior year's period. Direct-to-Consumer net revenues, which represented 26% of total net revenues for the first quarter, grew 31% year-over-year.
Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "In the first quarter, we drove growth in excess of 20% for the 12th consecutive quarter in total revenues and the 14th consecutive quarter in apparel revenues.
This growth is the direct result of our enhanced design and innovation, including new and improved HeatGear Sonic Baselayer and the attention-grabbing UA Alter Ego line, featuring iconic superheroes such as Batman and Superman. Our Youth product is stronger than ever and we continue to see traction with our expanded Women's lines in Studio and ArmourBra. Momentum is also evident in Footwear with solid sell through of our latest product in the running platform, Spine Venom."
Gross margin for the first quarter of 2013 was 45.9% compared with 45.6% in the prior year's quarter, primarily reflecting favorable year-over-year North American apparel product costs.
Selling, general and administrative expenses as a percentage of net revenues were 43.1% in the first quarter of 2013 compared with 39.2% in the prior year's period, primarily reflecting the timing of marketing expenses and incentive compensation expenses. First quarter operating income declined 45% to $13 million compared with $24 million in the prior year's period.
Balance Sheet Highlights
Cash and cash equivalents increased 139% to $256 million at March 31, 2013 compared with $107 million at March 31, 2012. The Company had no borrowings outstanding under its $300 million revolving credit facility at March 31, 2013. Inventory at March 31, 2013 remained unchanged year-over-year at $324 million. Long-term debt decreased to $60 million at March 31, 2013 from $76 million at March 31, 2012.
