$57.3 million, or 54 cents a share, compared with $46.0 million, or 44 cents, in the prior year's period.
Third quarter Apparel net revenues increased 22 percent to $445
million compared with $363 million in the same period of the prior year,
driven by strength across Men's, Women's, and Youth apparel businesses.
Third quarter Footwear net revenues increased 21 percent to $63 million
from $52 million in the prior year's period, primarily driven by new
2012 running styles, including UA Spine. Third quarter Accessories net
revenues increased 37 percent to $54 million from $40 million in the
prior year's period, primarily led by headwear.
net revenues, which represented 24 percent of total net revenues for
the third quarter, grew 31 percent year-over-year.
Chairman, CEO, and President of Under Armour, Inc., stated, "The third
quarter marks our twelfth consecutive quarter with apparel growth in
excess of 20 percent and our tenth consecutive quarter of net revenues
growth surpassing 20 percent. This growth reflects our core belief that
when we innovate and add value for the athlete, we win. Our recent
expansion of the UA Storm platform is a great example of our unwavering
pursuit of innovation. The Women's category remains a major focus and
huge opportunity for us as a brand and the strong sell-throughs we are
seeing in new products such as Studio and ArmourBra give us confidence
that we are resonating with our consumers. Our success in innovation
extended to Footwear with the successful launch this past quarter of UA
Spine running footwear and will continue with our upcoming UA Spine
extension into basketball and our December introduction of the UA Cam
Gross margin for the third quarter of 2012
was 48.7 percent compared with 48.4 percent in the prior year's
quarter, primarily reflecting more favorable North American apparel
product margins. Selling, general and administrative expenses as a
percentage of net revenues were 32.9 percent in the third quarter of
2012 compared with 32.3 percent in the prior year's period, primarily
reflecting the timing of marketing expenses. Marketing expenses for the
third quarter of 2012 were 11.4 percent of net revenues compared with
10.4 percent in the prior year's quarter. Third quarter operating
income grew 21 percent to $91 million compared with $75 million in the
prior year's period.
Balance Sheet Highlights Cash
and cash equivalents increased to $157 million at September 30, 2012
compared with $68 million at September 30, 2011. The company had no
borrowings outstanding under its $300 million revolving credit facility
at September 30, 2012. Inventory at September 30, 2012 decreased 2
percent to $312 million compared with $319 million at September 30,
2011. Long-term debt, including current maturities, decreased to $72
million at September 30, 2012 from $80 million at September 30, 2011.
Updated 2012 Outlook
company had previously anticipated 2012 net revenues in the range of $1.80 billion to $1.82 billion, representing growth of 22 percent to 24
percent over 2011, and 2012 operating income in the range of $205
million to $207 million, representing growth of 26 percent to 27 percent
over 2011. Based on current visibility, the company now expects 2012
net revenues of approximately $1.82 billion, representing growth of 24
percent over 2011, and 2012 operating income of approximately $207
million, representing growth of 27 percent over 2011. The company now
expects an effective tax rate of approximately 37.0 percent, compared to
an effective tax rate of 38.2 percent for 2011. The company continues
to anticipate fully diluted weighted average shares outstanding of
approximately 106 million to 107 million for 2012.
concluded, "I am proud of what our team has accomplished so far this
year and we are well positioned for growth in 2013 and beyond. I
emphasize 'team,' as we continue to make great strides with the
additions of seasoned leadership in Supply Chain, Women's, and
International. These investments illustrate our commitment to realizing
our long-term vision of one day having our Women's business larger than
Men's, Footwear larger than Apparel, and our International business
larger than our U.S. business."
( Under Armour )