Under Armour Q4 profit increases, partly due to footwear
US sportswear brand Under Armour has reported that its fourth quarter profit rose 42%, partly on the strength of its shoe and direct-to-consumer sales and taking its previously licensed hats and bags segment in-house.
The athletic clothing and footwear company also cut its 2012 revenue forecast.
Under Armour reported that net income rose to $32.6 million in the quarter ended December 31 from $22.9 million a year earlier. Revenue increased 34% to $403.1 million from $301.2 million.
Accessories revenue more than doubled to $37 million because Under Armour took the business in-house. Footwear revenue rose 43% to $31 million, while direct-to-consumer revenue — which made up 38% of total revenue — increased 50%. Clothing revenue rose 27% on strong sales of fleece items and the expansion of its Charged Cotton goods.
Under Armour now expects 2012 revenue growth at the low end of its 20 percent to 25 percent long-term target. Its previous guidance was for results to come in at the higher end of its long-term growth target.
