On Jan. 31, sportswear specialist Under Armour (NYSE: UA) released earnings for the 2007 fiscal year, a period ended Dec. 31.
- These numbers are slightly better than the preannounced sales and earnings we were given a couple of weeks ago. Sales were supposed to stop at $605 million, and earnings somewhere between $1.03 and $1.04 per diluted share.
- On the other hand, management said that 2008 revenue trends are pointing somewhere south of $775 million, which is at least $12 million worse than the average analyst has been predicting. And this company has a history of guiding above the current expectations, so the Street should be surprised.
- Under Armour may trade at a premium to its closest rivals, but the company can back up that swagger with some hefty earnings and sales growth.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
FY 2007 |
FY 2006 |
Change | |
|---|---|---|---|
|
Sales |
$606.6 |
$430.7 |
40.8% |
|
Net Profit |
$52.6 |
$39.0 |
34.8% |
|
EPS |
$1.05 |
$0.79 |
32.9% |
|
Diluted Shares |
50.0 |
49.6 |
0.8% |
Get back to basics with the income statement.
Margin Checkup
|
FY 2007 |
FY 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
50.3% |
50.1% |
0.2 |
|
Operating Margin |
14.2% |
13.2% |
1.0 |
|
Net Margin |
8.7% |
9.1% |
(0.4) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
FY 2007 |
FY 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$40.6 |
$70.7 |
(42.6%) |
|
Accounts Rec. |
$93.5 |
$71.9 |
30.1% |
|
Inventory |
$166.1 |
$81.0 |
105% |
|
Liabilities |
FY 2007 |
FY 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$9.8 |
$2.8 |
246.6% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Free cash flow is a Fool's best friend. But Under Armour didn't let our bestest buddy out to play today.
Competitive Context
|
Market Cap |
Trailing P/E Ratio |
CAPS Rating (out of 5) | |
|---|---|---|---|
|
Nike (NYSE: NKE) |
$29,537 |
17.0 |
**** |
|
American Eagle Outfitters (NYSE: AEO) |
$4,833 |
12.7 |
**** |
|
Phillips-Van Heusen (NYSE: PVH) |
$2,244 |
12.8 |
*** |
|
Under Armour |
$1,827 |
29.9 |
*** |
|
Columbia Sportswear (Nasdaq: COLM) |
$1,506 |
11.1 |
**** |
Using the latest reported numbers from Capital IQ. Keep your partners close and the competition in your vest pocket.
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