Under Armour Inc. (UA, Financial) filed Quarterly Report for the period ended 2010-09-30.
Under Armour Inc. has a market cap of $2.34 billion; its shares were traded at around $46.8 with a P/E ratio of 44.7 and P/S ratio of 2.7. 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., John Hussman of Hussman Economtrics Advisors, Inc., Steven Cohen of SAC Capital Advisors, RS Investment Management.
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 $5.0 million and $3.1 million for the three months ended September 30, 2010 and 2009, respectively, and $12.0 million and $7.9 million for the nine months ended September 30, 2010 and 2009, respectively.
Net revenues increased $59.1 million, or 21.9%, to $328.6 million for the three months ended September 30, 2010 from $269.5 million for the same period in 2009.
License revenues increased $2.4 million, or 23.1%, to $12.7 million for the three months ended September 30, 2010 from $10.3 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 $34.1 million to $167.4 million for the three months ended September 30, 2010 from $133.3 million for the same period in 2009. Gross profit as a percentage of net revenues, or gross margin, increased 140 basis points to 50.9% for the three months ended September 30, 2010 compared to 49.5% during the same period in 2009. The increase in gross margin was primarily driven by the following:
Selling, general and administrative expenses increased $24.4 million to $110.7 million for the three months ended September 30, 2010 from $86.3 million for the same period in 2009. As a percentage of net revenues, selling, general and administrative expenses increased to 33.6% for the three months ended September 30, 2010 from 32.0% for the same period in 2009. These changes were primarily attributable to the following:
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Under Armour Inc. has a market cap of $2.34 billion; its shares were traded at around $46.8 with a P/E ratio of 44.7 and P/S ratio of 2.7. 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., John Hussman of Hussman Economtrics Advisors, Inc., Steven Cohen of SAC Capital Advisors, RS Investment Management.
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 $762.8 million for the first nine months of 2010, which represented a 20.3% increase from the first nine 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 for introduction in the future, including basketball footwear in the fourth quarter of 2010.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 $5.0 million and $3.1 million for the three months ended September 30, 2010 and 2009, respectively, and $12.0 million and $7.9 million for the nine months ended September 30, 2010 and 2009, respectively.
Net revenues increased $59.1 million, or 21.9%, to $328.6 million for the three months ended September 30, 2010 from $269.5 million for the same period in 2009.
License revenues increased $2.4 million, or 23.1%, to $12.7 million for the three months ended September 30, 2010 from $10.3 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 $34.1 million to $167.4 million for the three months ended September 30, 2010 from $133.3 million for the same period in 2009. Gross profit as a percentage of net revenues, or gross margin, increased 140 basis points to 50.9% for the three months ended September 30, 2010 compared to 49.5% during the same period in 2009. The increase in gross margin was primarily driven by the following:
Selling, general and administrative expenses increased $24.4 million to $110.7 million for the three months ended September 30, 2010 from $86.3 million for the same period in 2009. As a percentage of net revenues, selling, general and administrative expenses increased to 33.6% for the three months ended September 30, 2010 from 32.0% for the same period in 2009. These changes were primarily attributable to the following:
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