Today Under Armour (NYSE:UA) announced its net income rose by nearly 75% to $13.5 million in the first quarter, well above the $7.8 million seen in the first quarter of 2013. In addition the company saw its revenue increase by 36%, or $170 million, to $642 million.
"We are off to a great start in 2014 driven by broad-based strength across our Apparel, Footwear, and International growth drivers," said Under Armour CEO Kevn Plank in the earnings press release. "Our formula for driving newness and innovation in Apparel continues to resonate with consumers and helped deliver over 30% growth for our largest product category."
Under Armour's apparel products saw sales increase by 33%, or $113 million, to $459 million, and its footwear line saw revenue increase from $81 million in the first quarter of last year to $114 million, a gain of 41%. Its sales in North America rose by 32% to $582 million, and while smaller, it saw impressive gains in its sales made outside North America nearly double, rising from $31 million to $59 million.
Plank continued his remarks by noting, "we enhanced our ability to reach the global athlete, including the recent expansion of our brand in key Latin American markets, as well as strong gains across Europe and Asia."
Under Armour also noted its profitability improved as its gross margin rose from 45.9% to 46.9%, as a result of improvements in its supply chain operations as well as "a favorable sales mix" in its outlet operations.
In the first quarter its operating income stood at $27 million, or 4.2% of sales, double the $13.5 million at 2.9% of sales, seen in the first quarter of 2013. In addition the company also highlighted it would be raising its full-year expectations to see operating income range between $331 million and $334 million, up from the $326 million to $329 million it expected when it announced fourth-quarter earnings.
"This strong start to 2014 illustrates the unlimited potential that still lies ahead for our Brand, whether it is today's opening of our Brand House in New York City or our product hitting shelves for the first time in Brasil," Plank said in his prepared remarks. "Our opportunity requires that we remain focused on building powerful product platforms that service athletes at home and abroad, on and off the playing field."
Patrick Morris has no position in any stocks mentioned. The Motley Fool recommends Under Armour. The Motley Fool owns shares of Under Armour. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.