Under Armour reports first quarter that tops $1 billion in sales
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Version 0 of 1. Baltimore-based Under Armour reported its first $1 billion-plus revenue quarter Thursday. Five years ago, it took an entire year to reach $1 billion in sales, showing just how fast and how far the performance apparel-maker has grown. Under Armour, the creation of Washington-area entrepreneur Kevin Plank, earned a profit of $100.5 million (45 cents a share) on revenue of $1.2 billion for the quarter ended Sept. 30. Revenue jumped 28.4 percent from a year ago. The company said Thursday it is aiming to grow to more than $7 billion annually by 2018, nearly double this year’s projected revenue. Brad Dickerson, chief financial officer and chief operating officer, said the company is basing those estimates on plans to expand its footwear business and sales internationally. Indeed, international sales grew 61 percent in the most recent quarter. “Our ability, especially over the last five years, to build a footwear engine has become a very important part of our growth,” Dickerson said. Plank, who ranks 145th on the Forbes Magazine list of the 400 richest Americans, with a net worth of $3.9 billion, said in a statement accompanying the earnings report that his company planned to manufacture 30 million pairs of shoes this year, compared with more than 500 million by his competitors. ”Under Armour got a boost this year from the athletes it pays to wear its products. Professional golfer Jordan Spieth won the Master’s and U.S. Open golf tournaments clothed head to toe in the brand. New England Patriots quarterback Tom Brady helped propel his team to his fourth Super Bowl win and is off to an undefeated start so far this season. “They are doing a really good job in terms of growing and executing on the business,” said Christopher Svezia, an analyst with Susquehanna International Group. “Where it gets tripped up is profitability, to a degree. The upcoming quarter guidance . . . is not as robust as people expected.” Under Armour continues to poke rival Nike. It has plans to open its worldwide footwear headquarters in Portland, Ore., next year in Nike’s backyard, only a few miles away. As part of its move, Under Armour is upgrading a park and running track that was first resurfaced by Nike years ago. The improvements include scrapping a Nike clock that features the shoe company’s inimitable swoosh branded across it, according to a Wall Street Journal report. Under Armour also plans to open a factory in Baltimore in 2016. |