Under Armour Flexes Muscle to Lift Earnings and Sales
Under Armour Flexes Muscle to Lift Earnings and Sales (Baltimore Sun)
Under Armour, Inc. (NYSE: UA) finished 2013 well above analysts’ estimate with its latest quarterly results that blew past profit and sales expectations to send its stock price racing ahead Thursday nearly $20 a share to more than $100. The stock has jumped close to 3.5 percent so far Friday to hit $108.35, based on upwardly revised guidance yesterday from the company’s management that is continuing to be well received by investors. The share price of the Baltimore-based apparel and footwear brand rose $19.54 Thursday to mark a 23% percent spike and close at $104.76. Under Armour’s profit jumped 28 percent in the fourth quarter, with strong sales driven by the growing popularity of the brand’s cold-weather sports apparel and big strides in its women’s apparel business. The company reported net income of $64 million for the three months ended Dec. 31, up from $50 million a year earlier. Earnings per share hit 59 cents, up from 47 cents, and beat analysts’ expectations of 53 cents. Sales far surpassed expectations as well, climbing 35 percent to $683 million, compared with sales of $506 million in 4Q 2012. Analysts anticipated about $620 million in revenue. Even analysts who expected a strong finish to the year were impressed by such a big jump in sales, especially during the highly competitive holiday season when other apparel sellers struggled and discounted prices.