Athletic apparel and footwear business Under Armour increased its second quarter net profit 77% to $6.2 million, thanks to major revenue increases of 42% to $291.3 million for its apparel and footwear products.
The company said continued strength in its men’s, women’s and youth apparel business helped apparel revenues to grow 36% in the three months to June 30, while footwear sales were up 31%.
Direct-to-consumer revenues soared up 81% on last year, while accessories surged off a low base to rise 266% to $32.4 million.
However, gross margins fell to 46.3% from 48.8% last year, thanks to narrower apparel margins and a lower mix from the company’s licensing businesses.
“We recently outlined our strategy to double our net revenues to over $2.1 billion by 2013, and our second quarter performance is indicative of the increased demand for the Under Armour brand that will drive us there,” said Kevin Plank, Under Armour chairman, CEO and president.
The company has increased its guidance for the full year, now forecasting revenues of $1.42-1.44 billion and operating income of $155-160 million.
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