Sales were up 22% to $328.6 million while net income rose 33% to $34.9 million. Both numbers beat analyst's estimates and the company raise full-year guidance.
I love to see earnings beat estimates followed by increased guidance but investors didn't seem quite as excited. Some analysts expected a bigger quarter and some cited gross margins of 50.9%, which missed an estimate of 51.5%. I say rubbish, enjoy this growth story while you can.
Of course, not everything at Under Armour is clicking on all cylinders. As fellow Fool Rich Smith pointed out earlier this week Under Armour is taking dead aim at Nike's
You must protect this house!
Apparel is still Under Armour's growth engine and it is great to see sales up 28% in this division. I would like to see footwear pick up some steam but I will give it a little more time before completely giving up on footwear. Under Armour has grand plans to knock Nike off its pedestal and become "the biggest, baddest brand on the planet" and I'm not counting it out quite yet.
Fore! Oops, a slice...
Growth we've seen at Under Armour and lululemon
The company cited a weak recovery in the golf industry as a whole dragging down results. I say the casual golfer is finally fighting back, saying no to the $400 driver and overpriced golf apparel. Maybe Callaway needs to take a cue from Tiger Woods and remake its swing before more losses put this company in even more trouble.