Under Armour 3Q profit up 25 percent
BALTIMORE (AP) — Under Armour said Thursday that its net income climbed 25 percent in the third quarter, with the athletic clothing maker saying that new products are helping fuel demand for its merchandise.
The Baltimore company now anticipates 2012 revenue at the high end of its prior forecast, but that's still slightly below analyst expectations, and shares dropped nearly 4 percent in premarket trading.
Under Armour Inc. earned $57.3 million, or 54 cents per share, for the three months ended Sept. 30. That's up from $46 million, or 44 cents per share, a year ago. Analysts surveyed by FactSet expected 52 cents per share.
Revenue increased 24 percent to $575.2 million, matching Wall Street expectations, from $465.5 million. Clothing sales rose 22 percent to $445 million, with gains in the men's, women's and youth divisions, helped by new products for women. Shoe sales rose 21 percent to $63 million, with the company crediting the launch of the new UA Spine style for driving sales. Accessories sales rose 37 percent to $54 million.
Sales made directly to shoppers, which makes up about a quarter of the company's revenue, climbed 31 percent.
Under Armour now expects revenue for the year of $1.82 billion. Its previous guidance was for revenue between $1.8 billion and $1.82 billion. Analysts predict $1.83 billion.
Shares lost $2.17, or 3.8 percent, to $54.45 before the opening bell.