This increase reflects planned investments in growth initiatives, such as international and footwear, as well as additional costs associated with being a public company.
Increasing Outlook for 2006
Based on the strength of the Brand year-to-date, Under Armour is increasing its outlook for 2006.
The Company now expects annual net revenues in the range of $410 million to $420 million, a 46 percent to 49 percent increase over 2005, and annual net income in the range of $38.5 million to $39.5 million.
The Company anticipates an additional $1.0 million benefit from new state tax credits expected to be recognized in the fourth quarter, realizing an effective tax rate of 33.6 percent for the full year.
The Company continues to expect fully diluted weighted average shares outstanding of approximately 50 million for 2006.
Preliminary Outlook for 2007 The Company has previously stated its long-term growth targets of 20 percent - 25 percent for the top and bottom line.
However, based on the continued strength of the Brand and its ability to extend product scope and distribution, the Company believes 2007 net revenues and income from operations will exceed the long-term 20 percent - 25 percent growth targets.
Conference Call and Webcast Under Armour will host a conference call and webcast to discuss its financial results today, October 31st, at 8:30 a.m. EST. The Company's financial results are also available online at investor section.
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