Under Armour Inc. (UA, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $1.2 billion; its shares were traded at around $24.11 with a P/E ratio of 30.5 and P/S ratio of 1.7.
License revenues increased $0.9 million, or 12.0%, to $8.1 million for the three months ended June 30, 2009 from $7.2 million during the same period in 2008. This increase in license revenues was a result of increased sales by certain licensees due to increased distribution and continued unit volume growth, along with new product offerings.
Gross profit increased $3.4 million to $74.3 million for the three months ended June 30, 2009 from $70.9 million for the same period in 2008. Gross profit as a percentage of net revenues, or gross margin, decreased 20 basis points to 45.1% for the three months ended June 30, 2009 compared to 45.3% during the same period in 2008. The decrease in gross margin percentage was primarily driven by the following:
Income from operations increased $0.1 million, or 3.3%, to $3.4 million for the three months ended June 30, 2009 from $3.3 million for the same period in 2008. Income from operations as a percentage of net revenues remained at 2.1% for the three months ended June 30, 2009 as compared to the same period in 2008.
Interest expense, net increased $0.3 million to $0.6 million for the three months ended June 30, 2009 from $0.3 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 June 30, 2009.
Other expense, net decreased $0.1 million to $0.4 million for the three months ended June 30, 2009 from $0.5 million for the same period in 2008. This decrease was primarily due to gains on foreign currency exchange rate changes on transactions denominated in the Euro and Canadian Dollar, largely offset by losses on our derivative financial instruments.
Read the The complete ReportUA is in the portfolios of Ron Baron of Baron Funds, John Hussman of Hussman Economtrics Advisors, Inc., Richard Perry of Perry Capital.
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 $1.2 billion; its shares were traded at around $24.11 with a P/E ratio of 30.5 and P/S ratio of 1.7.
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 $4.9 million and $4.0 million for the three months ended June 30, 2009 and 2008, respectively, and $9.5 million and $7.4 million for the six months ended June 30, 2009 and 2008, respectively.License revenues increased $0.9 million, or 12.0%, to $8.1 million for the three months ended June 30, 2009 from $7.2 million during the same period in 2008. This increase in license revenues was a result of increased sales by certain licensees due to increased distribution and continued unit volume growth, along with new product offerings.
Gross profit increased $3.4 million to $74.3 million for the three months ended June 30, 2009 from $70.9 million for the same period in 2008. Gross profit as a percentage of net revenues, or gross margin, decreased 20 basis points to 45.1% for the three months ended June 30, 2009 compared to 45.3% during the same period in 2008. The decrease in gross margin percentage was primarily driven by the following:
Income from operations increased $0.1 million, or 3.3%, to $3.4 million for the three months ended June 30, 2009 from $3.3 million for the same period in 2008. Income from operations as a percentage of net revenues remained at 2.1% for the three months ended June 30, 2009 as compared to the same period in 2008.
Interest expense, net increased $0.3 million to $0.6 million for the three months ended June 30, 2009 from $0.3 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 June 30, 2009.
Other expense, net decreased $0.1 million to $0.4 million for the three months ended June 30, 2009 from $0.5 million for the same period in 2008. This decrease was primarily due to gains on foreign currency exchange rate changes on transactions denominated in the Euro and Canadian Dollar, largely offset by losses on our derivative financial instruments.
Read the The complete ReportUA is in the portfolios of Ron Baron of Baron Funds, John Hussman of Hussman Economtrics Advisors, Inc., Richard Perry of Perry Capital.
