Under Armour's Q4 income up, FY income grows by 21%
07 Feb '06
4 min read
Performance athletes apparel maker Under Armour Inc has announced financial results for the fourth quarter and year ended December 31, 2005.
Fourth quarter net income increased 14 percent to $7.0 million from $6.2 million in the same period of 2004. Net income in 2005 increased 21 percent to $19.7 million from $16.3 million in the prior year.
Kevin Plank, Chairman, CEO, and President of Under Armour Inc said, "Our fourth quarter sales and strong earnings performance topped off an outstanding and eventful year for Under Armour."
"The demand for our performance apparel remains very strong and we are pleased that we have been able to grow our core men's apparel business while successfully broadening the product offerings in our women's and youth categories," he said.
Net revenues, which consist of net sales and license revenue, increased 25 percent in the fourth quarter to $87.3 million compared to net revenues of $69.6 million in the same period of 2004. Fourth quarter net sales, which consist of Under Armour products sold globally other than through licensees, increased 24 percent to $84.4 million from $68.3 million in the same period of 2004.
Within net sales, the company's Men's category sales increased 15 percent to $60.1 million for the quarter. The growth in the Men's category was primarily due to the introduction of new product offerings as well as sales growth in core products.
Women's category sales rose 59 percent to $16.7 million for the quarter. Fourth quarter Youth category sales grew 70 percent to $5.5 million. Improved sales in Women's and Youth reflect increases in new and existing product offerings along with door expansion. Sales of Accessories declined 11 percent to $2.1 million in the fourth quarter.