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)

*Expressed in percentage points.

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.

Related Foolishness:

Under Armour is a Motley Fool Rule Breakers recommendation, while Columbia Sportswear is a longtime Motley Fool Hidden Gems pick. American Eagle is a Motley Fool Stock Advisor selection, and The Motley Fool owns shares of it. Grab all the free newsletter trials you can handle right here.

Fool by Numbers provides raw earnings information in a timely, convenient package. But since numbers never provide the whole story, check Fool.com for more in-depth discussion of the meaning behind the earnings.

At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.