Please ensure Javascript is enabled for purposes of website accessibility

Under Armour Protects Its House With Better-than-Expected Earnings

By John Maxfield - Apr 19, 2013 at 2:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The popular sports-apparel company shows why the Fool selected it as one of America's best-run companies.

Shares of Under Armour (UAA 3.88%) started the day almost 5% higher after the apparel company reported better-than-expected earnings for the first quarter of the year, though they were sold off throughout the day, leaving the stock slightly below breakeven as of 2 p.m. EDT.

Under Armour's top-line performance was particularly impressive. For the three months ended March 31, it notched sales of $472 million. That equated to a 23% increase over the same time period last year, during which it sold $384 million worth of product. The improvement, according to the company's earnings release, was largely attributable to the "introduction of new Baselayer product and strong sales of Fleece."

On the bottom line, Under Armour earned $8 million, or $0.07 per share. While this was 47% less than the prior-year period, the decline was the result of the "planned timing of marketing expenditures." This was reflected in analyst estimates, which called for earnings of $0.03 per share.

In a prepared statement, the company's founder and chief executive officer, Kevin Plank, remarked:

In the first quarter, we drove growth in excess of 20% for the 12th consecutive quarter in total revenues and the 14th consecutive quarter in apparel revenues. This growth is the direct result of our enhanced design and innovation, including new and improved HeatGear Sonic Baselayer and the attention-grabbing UA Alter Ego line, featuring iconic superheroes such as Batman and Superman. Our Youth product is stronger than ever and we continue to see traction with our expanded Women's lines in Studio and ArmourBra. Momentum is also evident in Footwear with solid sell through of our latest product in the running platform, Spine Venom.

Earlier this year, The Motley Fool picked Under Armour as one of America's best-run companies -- click here for the article announcing its selection. With sales growth like this, it's easy to see why.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Under Armour, Inc. Stock Quote
Under Armour, Inc.
$9.64 (3.88%) $0.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.