Bloomberg News

Under Armour Gains After Raising Sales, Profit Forecasts

July 24, 2012

Under Armour Inc. (UA:US), the maker of athletic apparel and shoes, advanced after raising its annual sales and profit forecasts amid increased demand.

The shares rose (UA:US) 5.6 percent to $51.08 at 8 a.m. in New York. Under Armour had gained 35 percent this year through yesterday.

Sales for 2012 will be as much as $1.82 billion compared to a previous forecast of a maximum of $1.8 billion, the Baltimore- based company said today in a statement. Analysts’ projected $1.81 billion, the average of estimates compiled by Bloomberg. Operating income may total as much as $207 million, up from a previous projection of as much as $205 million.

Second-quarter net income rose 6.8 percent to $6.67 million, or 6 cents a share, from $6.24 million, or 6 cents, a year earlier. Analysts projected 5 cents, the average of 27 estimates compiled by Bloomberg. Gross margin, or the percentage of sales left after cost of goods sold, declined to 45.9 percent from 46.3 percent a year ago.

Sales rose 27 percent $369.5 million in the quarter. Analysts projected (UA:US) $358.5 million.

To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net


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Companies Mentioned

  • UA
    (Under Armour Inc)
    • $67.14 USD
    • 0.39
    • 0.58%
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