Under Armour Flexes Its Earnings Muscles: Beats Estimates
Under Armour reported before the bell Thursday morning fourth-quarter and full-year earnings that beat analysts' estimates. The athletic apparel company saw its quarterly profit grow 35% to $683 million, while full-year net revenue increased 27% to $2.3 billion in 2013. Both figures topped analyst expectations for fourth-quarter revenue of just $619 million and full year-revenue of $2.2 billion.
Under Armour posted fourth-quarter earnings of $0.59 per share, which was a 27% increase from the year-ago period. That was also better than analysts' projection of earnings per share of $0.53 in the quarter. Meanwhile, Under Armour said it earned $1.50 per share for the year.
For its fourth quarter, Under Armour captured growth across all of its apparel categories. Even online sales were a bright spot for the company, with the direct-to-consumer segment growing 36% year over year in the period. Online sales continue to be an important part of Under Armour's growth strategy -- they now represent 39% of total net revenue.
Under Armour also raised its 2014 guidance. It now expects net revenue in the range of $2.84 billion-$2.87 billion, which would represent 22%-23% growth from the company's 2013 results.
CEO Kevin Plank said in a statement that: "By any measure, 2013 was a banner year for the UA Brand. We surpassed $2 billion in net revenues for the year, which culminated with our 15th straight quarter of at least 20% total growth. In addition, we completed our first acquisition, MapMyFitness, opened our first two UA Brand House retail stores, and continued to make key investments in our Women's, Footwear and International businesses to drive long-term global growth."
The article Under Armour Flexes Its Earnings Muscles: Beats Estimates originally appeared on Fool.com.
Tamara Rutter has no position in any stocks mentioned. The Motley Fool recommends Under Armour. The Motley Fool owns shares of Under Armour. 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.
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