Please ensure Javascript is enabled for purposes of website accessibility

Under Armour 4Q revenue up 25%

Under Armour, the Baltimore-based sportswear manufacturer, announced strong results Thursday for the fourth quarter and for 2012 as a whole, putting it closer to its goal of doubling net revenues from 2010 to 2013.

Kevin Plank, President and CEO of Under Armour, claims that the company's "ability to bring practical innovation to our consumer across a broad range of product drove our 25 percent net revenue growth in 2012."

“Our ability to bring practical innovation to our consumer across a broad range of product drove our 25 percent net revenue growth in 2012 and positions us well for 2013 and beyond,” Kevin Plank, the company’s chairman and CEO, said in a statement. “With these strong results in hand, we are well on our way toward delivering on the goal established at our June 2011 Investor Day to more than double our net revenues from 2010 to 2013.”

The company posted net revenues of $506 million, up 25 percent over the corresponding quarter in 2011. Revenues for the full year were up 25 percent as well, to $1.835 billion.

The company announced that diluted earnings per share increased 51 percent for the quarter, to 47 cents from 31 cents. For the full year, diluted earnings per share were up 31 percent to $1.21 from 92 cents.

“We closed 2012 strongly, delivering net revenue growth of at least 20 percent for the 11th consecutive quarter in Q4 by building upon key apparel technology platforms like Storm Fleece and Charged Cotton,” Plank said.

Under Armour shares closed at $50.87 Thursday on the New York Stock Exchange, up $2.74.

In its earnings announcement, the company updated its net revenues outlook for 2013 to a range of $2.20 billion to $2.22 billion and its operating income outlook to a range of $255 million to $257 million.

In a call with analysts, Brad Dickerson, Under Armour’s chief financial officer, said apparel grew 25 percent to $405 million during the fourth quarter. Apparel is the company’s largest product category, and Dickerson said the results represented 13 straight quarters of at least 20 percent growth in this area.

“Our big story is driving growth across genders for Fleece and Storm,” Dickerson said, referring to two product lines. “We anticipate that most of our dollar growth for the year will continue to come from apparel, with strong growth across men’s, women’s and youth.”

In answer to an analyst’s question, Plank announced the date for the opening of Under Armour’s 8,000-square-foot specialty store in Harbor East as Feb. 16.

“We’re going to learn a lot about the consumer, and I think as we grow with the brand, it’s important that we have this closer relationship with the consumer,” said Plank. “There’s a way that we can learn watching a consumer walk in and seeing what products are compelling. I don’t believe in the idea of leading with marketing or flagship where, oh, it’s a loss leader for us. We should make money in everything that we do.”

Asked about recent changes in the management of Under Armour’s footwear operations — a business area where the company is up against industry giants — Plank said he had turned to his original partner, Kip Fulks, to run the division.

“His primary focus is to get in — to help us continue to build out our footwear team, because even where we are crossing the quarter-billion dollar mark, we feel there’s a tremendous opportunity.”