Driven by a surge in apparel, footwear, accessories and international sales, third quarter of 2014 revenues at Under Armour, soared 30% from a year ago.
In the three months to September 30, 2014, Under Armour revenues climbed 30% to $938 million compared with $723 million in the prior year quarter.
In the reporting quarter, segment-wise, apparel sales increased 26% to $705 million from $561 million in third-quarter of 2013, driven primarily by expanded offerings and innovations.
Third quarter of 2014 accessories segment turnover ascended 32% to $85 million from $64 million in the prior year's period, also driven by expanded offerings in headwear, bags, and gloves.
Direct-to-Consumer revenues, which represented 26% of total revenues for the third quarter of 2014, grew 35% year-over-year.
International sales, which made-up for 9% of total third quarter of 2014 revenues, skyrocketed 94% from a year earlier period.
Under Armour said its net income increased 22% in the third quarter of 2014 to $89 million or $0.41 diluted earnings per share, versus $73 million and $0.34 per share in the prior year quarter.
Cash and cash equivalents grew 34% to $249 million at September 30, 2014 versus $186 million at September 30, 2013.
Long-term debt including current maturities increased to $192 million at September 30, 2014 against $54 million on September 30, 2013.
Inventory at September 30, 2014 went up 28% to $637 million compared with $497 million at September 30, 2013.
Driven by higher import duties in the prior year's period and favorable year-over-year sales mix, gross margin in the reporting quarter was 49.6% against 48.4% in the third quarter of 2013.
Under Armour revised its forecast for full year of 2104 and now expects turnover to reach around, $3.03 billion, up 30% over 2013.
It also now expects 2014 operating income of approximately $348 million, a growth of 31% over 2013 and anticipates an effective tax rate of approximately 40.0% for the full year.
"Our plans of crossing $3 billion in net revenues and achieving 30% growth this year represent significant milestones, but we believe we are just getting started,” CEO Kevin Plank, stated.
He added, “We are delivering consistent top line results while making the right investments to support both the near- and long-term opportunities of the brand.” (AR)
