New products propel Under Armour's 1Q

Under Armour 1Q net income rises, revenue up as new products resonate with customers

Associated Press

BALTIMORE (AP) -- Under Armour's first-quarter net income rose 22 percent as new products resonated with customers and boosted revenue across all segments.

The athletic and outdoor clothing maker lifted its full-year revenue and operating income forecasts as well Friday because of the big first quarter.

Under Armour earned $14.7 million, or 28 cents per share, compared with $12.1 million, or 23 cents per share, in the prior-year period.

That tops the 24 cents per share that analysts polled by FactSet predicted.

Revenue for the three months ended March 31 climbed 23 percent to $384.3 million, also beating Wall Street's $378.2 million estimate.

Clothing sales increased 23 percent in the quarter, thanks in part to new products like ColdBlack and Armour Bra. Sales were strong across men's, women's and youth clothing, the company said.

Direct-to-consumer sales — which made up 25 percent of the quarter's total revenue — rose 49 percent. Footwear revenue climbed 24 percent mostly because of new 2012 running styles and strong sales of baseball cleats. Accessories revenue increased 26 percent.

Under Armour said that it now anticipates 2012 revenue of $1.78 billion to $1.88 billion, which is a 21 percent to 22 percent increase over the prior year's results. The company previously predicted revenue would be at the low end of its 20 percent to 25 percent long-term growth target.

The company expects operating income of $203 million to $205 million, a 25 percent to 26 percent rise from a year ago. Its prior guidance was for operating income to come in at the higher end of its 20 percent to 25 percent long-term forecast.

Earlier this month Under Armour named Adidas executive Karl-Heinz Maurath as president of its international division. The company said at the time that Maurath was filling a long-vacant position and would take on his new role in September.

Shares of Under Armour Inc., based in Baltimore, gained $2, or 2 percent, to $98.50 in premarket trading.

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