Under Armour Protects Its House: Fool by Numbers

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On May 1, Under Armour (NYSE: UARM) released first-quarter earnings for the period ended Mar 31.

• Revenues increased by 42%, helped by higher average selling prices in apparel.
• Gross margins declined, as margins from footwear were lower than those from apparel.
• For 2007, the company revised its revenue growth guidance from 25%-30% to 30%-35%.
• Rule Breakers recommendation Under Armour carries a two-star CAPS rating, while competitor Nike (NYSE: NKE) has earned four stars.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$124.3	$87.7	41.8%
Net Profit	$9.9	$8.7	13.8%
EPS	$0.20	$0.18	11.1%
Diluted Shares	49.8	49.5	0.6%

Get back to basics with a look at the income statement.

Margin Checkup

	Q1 2007	Q1 2006	Change*
Gross Margin	48.7%	50.5%	(1.8)
Operating Margin	12.9%	16.2%	(3.3)
Net Margin	8.0%	10.0%	(2.0)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$57.2	$58.3	(1.9%)
Accounts Rec.	$84.6	$63.2	33.8%
Inventory	$80.1	$53.5	49.7%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$53.8	$41.8	28.7%
Long-Term Debt	$3.0	$4.6	(35.7%)

Learn the ways of the balance sheet.

Cash Flow Highlights

No data available. (Lame!)

Free cash flow is a Fool's best friend.

Related Foolishness:

• Marvel vs. Under Armour: Under Armour
• Select Comfort vs. Under Armour: Under Armour
• Under Armour Sets the Pace

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.