Under Armour Inc. (UA, Financial) filed Quarterly Report for the period ended 2010-06-30.
Under Armour Inc. has a market cap of $1.91 billion; its shares were traded at around $38.01 with a P/E ratio of 36.9 and P/S ratio of 2.2. Under Armour Inc. had an annual average earning growth of 7.4% over the past 5 years.UA is in the portfolios of Ron Baron of Baron Funds, John Hussman of Hussman Economtrics Advisors, Inc., RS Investment Management, Steven Cohen of SAC Capital Advisors.
We include outbound freight costs associated with shipping goods to customers as cost of goods sold; however, we include the majority of outbound 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 handling costs in their cost of goods sold. Outbound handling costs include costs associated with preparing goods to ship to customers and certain costs to operate our distribution facilities. These costs were $3.4 million and $2.4 million for the three months ended June 30, 2010 and 2009, respectively, and $7.0 million and $4.8 million for the six months ended June 30, 2010 and 2009, respectively.
Net revenues increased $40.2 million, or 24.4%, to $204.8 million for the three months ended June 30, 2010 from $164.6 million for the same period in 2009. This increase was primarily the result of an increase in our apparel net sales as noted in the following tables.
License revenues increased $1.8 million, or 22.3%, to $9.9 million for the three months ended June 30, 2010 from $8.1 million during the same period in 2009. This increase in license revenues was a result of increased sales by our licensees due to increased distribution and continued unit volume growth.
Gross profit increased $26.2 million to $99.9 million for the three months ended June 30, 2010 from $73.7 million for the same period in 2009. Gross profit as a percentage of net revenues, or gross margin, increased 400 basis points to 48.8% for the three months ended June 30, 2010 compared to 44.8% during the same period in 2009. The increase in gross margin percentage was primarily driven by the following:
Income from operations increased $3.5 million, or 103.8%, to $6.9 million for the three months ended June 30, 2010 from $3.4 million for the same period in 2009. Income from operations as a percentage of net revenues increased to 3.4% for the three months ended June 30, 2010 from 2.1% for the same period in 2009. This increase was a result of the items discussed above.
Read the The complete Report
Under Armour Inc. has a market cap of $1.91 billion; its shares were traded at around $38.01 with a P/E ratio of 36.9 and P/S ratio of 2.2. Under Armour Inc. had an annual average earning growth of 7.4% over the past 5 years.UA is in the portfolios of Ron Baron of Baron Funds, John Hussman of Hussman Economtrics Advisors, Inc., RS Investment Management, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
We are a growth company as evidenced by the increase in net revenues to $856.4 million in 2009 from $281.1 million in 2005. We reported net revenues of $434.2 million for the first six months of 2010, which represented a 19.1% increase from the first six months of 2009. We believe that our growth in net revenues has been driven by a growing interest in performance products and the strength of the Under Armour brand in the marketplace relative to our competitors, as evidenced by the increases in sales of many of our products. We plan to continue to increase our net revenues over the long term by increased sales of our products, expansion of our wholesale distribution, growth in our direct to consumer sales channel and expansion of international markets. Our direct to consumer sales channel includes sales through our website and factory house and specialty stores. We are currently developing new products and product categories, including basketball footwear, for introduction in the future.We include outbound freight costs associated with shipping goods to customers as cost of goods sold; however, we include the majority of outbound 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 handling costs in their cost of goods sold. Outbound handling costs include costs associated with preparing goods to ship to customers and certain costs to operate our distribution facilities. These costs were $3.4 million and $2.4 million for the three months ended June 30, 2010 and 2009, respectively, and $7.0 million and $4.8 million for the six months ended June 30, 2010 and 2009, respectively.
Net revenues increased $40.2 million, or 24.4%, to $204.8 million for the three months ended June 30, 2010 from $164.6 million for the same period in 2009. This increase was primarily the result of an increase in our apparel net sales as noted in the following tables.
License revenues increased $1.8 million, or 22.3%, to $9.9 million for the three months ended June 30, 2010 from $8.1 million during the same period in 2009. This increase in license revenues was a result of increased sales by our licensees due to increased distribution and continued unit volume growth.
Gross profit increased $26.2 million to $99.9 million for the three months ended June 30, 2010 from $73.7 million for the same period in 2009. Gross profit as a percentage of net revenues, or gross margin, increased 400 basis points to 48.8% for the three months ended June 30, 2010 compared to 44.8% during the same period in 2009. The increase in gross margin percentage was primarily driven by the following:
Income from operations increased $3.5 million, or 103.8%, to $6.9 million for the three months ended June 30, 2010 from $3.4 million for the same period in 2009. Income from operations as a percentage of net revenues increased to 3.4% for the three months ended June 30, 2010 from 2.1% for the same period in 2009. This increase was a result of the items discussed above.
Read the The complete Report
