Under Armour Inc. (UA) filed Quarterly Report for the period ended 2009-09-30.
Under Armour is a leading developer marketer and distributor of branded performance products for men women and youth. The brand's moisture-wicking synthetic fabrications are engineered in many different designs and styles for wear in nearly every climate to provide a performance alternative to traditional natural fiber products. The Company is an official supplier to the National Hockey League the U.S. Ski Team USA Rugby the National Lacrosse League and Major League Lacrosse; and the Company's products are worn by professional football baseball and soccer players as well as athletes in major collegiate and Olympic sports. The Company's products are currently sold in the United States Canada Japan and the United Kingdom. Under Armour Inc. has a market cap of $1.37 billion; its shares were traded at around $27.34 with a P/E ratio of 34.1 and P/S ratio of 1.9.
Highlight of Business Operations:
We include a majority of our outbound shipping and handling costs as a component of selling, general and administrative expenses. As a result, our gross profit may not be comparable to that of other companies that include outbound shipping and handling costs in the calculation of their cost of goods sold. Outbound shipping and handling costs include costs associated with shipping goods to customers and certain costs to operate our distribution facilities. These costs were $5.5 million and $5.0 million for the three months ended September 30, 2009 and 2008, respectively, and $15.0 million and $12.5 million for the nine months ended September 30, 2009 and 2008, respectively.
Net revenues increased $37.6 million, or 16.2%, to $269.5 million for the three months ended September 30, 2009 from $231.9 million for the same period in 2008. This increase was primarily the result of an increase in our footwear and apparel net sales as noted in the product category table below:
License revenues increased $1.4 million, or 15.9%, to $10.3 million for the three months ended September 30, 2009 from $8.9 million during the same period in 2008. This increase was the result of additional sales by certain licensees due to increased distribution, new product offerings and unit volume growth, as well as new licensing agreements for team uniforms and custom-molded mouth guards.
Gross profit increased $15.8 million to $134.1 million for the three months ended September 30, 2009 from $118.3 million for the same period in 2008. Gross profit as a percentage of net revenues, or gross margin, decreased 130 basis points to 49.7% for the three months ended September 30, 2009 compared to 51.0% during the same period in 2008. The decrease in gross margin percentage was primarily driven by the following:
Income from operations increased $0.6 million, or 1.3%, to $47.1 million for the three months ended September 30, 2009 from $46.5 million for the same period in 2008. Income from operations as a percentage of net revenues decreased to 17.5% for the three months ended September 30, 2009 from 20.0% for the same period in 2008. This decrease was a result of an increase in selling, general and administrative expenses, and a decrease in gross profit as a percentage of net revenues as discussed above.
Interest expense, net increased $0.4 million to $0.5 million for the three months ended September 30, 2009 from $0.1 million for the same period in 2008. This increase was primarily due to increased fees related to our new revolving credit facility during the three months ended September 30, 2009.
UA is in the portfolios of Ron Baron of Baron Funds, John Hussman of Hussman Economtrics Advisors, Inc., Richard Perry of Perry Capital.
Rate This Article: |
  |