Athletic apparel company Under Armour
Through the first three quarters of this year, the company exceeded its total revenue from 2010, the first year that it earned more than a billion dollars in revenue. Analysts are expecting a total of $1.47 billion in revenue this year, surpassing 2010 revenue by 38%. As for earnings, the consensus estimate is $0.61 per share for the fourth quarter and a total of $1.84 per share for the year.
What to look for
Beyond earnings and revenue numbers, people will probably look at the one thing that has vexed them this year: its inventory growth. Last quarter, inventory growth was 63% year-over-year, still in excess of revenue growth but down from 74% the previous quarter. Plank has stated that by the end of 2011 he wanted both inventory and revenue growth to be in line. While I personally do not think that this will happen, if it is down further, it is still a goal that could be achieved this year.
One reason I'm not sweating about inventory too much is that this is a growing company. Industry highflyer lululemon
One area that Under Armour has been lagging behind chief competitor Nike
Only time will tell
Plank has taken a long view on his company, with ultimate goals of unseating Nike from its perch as number one. If he is able to eventually succeed, it would probably be one of the greatest stories in modern business. In the meantime, I hope that Under Armour can continue its massive growth as it becomes an even bigger player in the athletic apparel arena. Keep an eye on the developments with these companies by adding them to My Watchlist by clicking this link.
Under Armour's growth has certainly been impressive lately, and some industry vets are wondering how they can supercharge their sales. The good news is there is a way: emerging markets. The Motley Fool has uncovered 3 American companies set to dominate the world.
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Fool contributor Robert Eberhard owns plenty of Under Armour "gear," but holds no position in any company mentioned. The Motley Fool owns shares of lululemon athletica and Under Armour. Motley Fool newsletter services have recommended buying shares of Under Armour, lululemon athletica, and Nike; and creating a diagonal call position in Nike. 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.