Under Armour Q4 net revenues up 25 percent

Under Armour has announced financial results

for the fourth quarter ended December 31, 2012. Fourth quarter net revenues increased 25 percent. Full year net revenues increased 25 percent. Fourth quarter diluted EPS increased 51 percent. Full year diluted EPS increased 31 percent. Company updates 2013 net revenue and operating income outlook. The company expects 2013 net revenues to grow 20 percent to 21 percent over 2012.

The company’s net revenues increased 25 percent in the fourth quarter of 2012 to 506 million dollars (Rs 2,698 crores) compared with net revenues of 403 million dollars (Rs 2,148 crores) in the prior year's period. Net income increased 54 percent in the fourth quarter of 2012 to 50 million dollars (Rs 266 crores) compared with 33 million dollars (Rs 175 crores) in the prior year's period. Diluted earnings per share for the fourth quarter of 2012 were 0.47 dollars (Rs 25) on weighted average common shares outstanding of 107 million compared with 0.31 dollars (Rs 16.5) per share on weighted average common shares outstanding of 105 million in the prior year's period.

Under Armour is based in Baltimore. It is a developer, marketer, and distributor of branded performance apparel, footwear, and accessories. Kevin Plank, Chairman and CEO of Under Armour, stated, "We closed 2012 strongly, delivering net revenue growth of at least 20 percent for the eleventh consecutive quarter in Q4 by building upon key apparel technology platforms like Storm Fleece and Charged Cotton."

Gross margin for the fourth quarter of 2012 was 50.3 percent compared with 51.6 percent in the prior year's quarter, primarily reflecting less favorable sales mix and higher air freight costs. Selling, general and administrative expenses as a percentage of net revenues were 34.2 percent in the fourth quarter of 2012 compared with 37.9 percent in the prior year's period, largely reflecting a leverage of corporate services and marketing expenses. Marketing expenses for the fourth quarter of 2012 were 9.7 percent of net revenues compared with 10.9 percent in the prior year's quarter. Fourth quarter operating income grew 48 percent to 82 million dollars (Rs 437 crores) compared with 55 million dollars (Rs 293 crores) in the prior year's period.

For the full year 2012, net revenues increased 25 percent to 1.835 billion dollars (Rs 9,778 crores) compared with 1.473 billion dollars (Rs 7,854 crores) in the prior year and compared with the company's prior outlook of 1.82 billion dollars (Rs 9,715 crores). Diluted earnings per share for the full year increased 31 percent to 1.21 dollars (Rs 64.5) per share on weighted average common shares outstanding of 106 million compared with 0.92 dollars (Rs 49) per share on weighted average common shares outstanding of 105 million in the prior year.

Gross margin for 2012 was 47.9 percent compared with 48.4 percent in 2011. Selling, general and administrative expenses as a percentage of net revenues were 36.5 percent for 2012 compared with 37.3 percent for 2011. Marketing expense for 2012 was 11.2 percent of net revenues compared with 11.4 percent in the prior year. Operating income grew 28 percent to 209 million dollars (Rs 1,113 crores) in 2012 compared with 163 million dollars (Rs 868 crores) in the prior year.