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Under Armour (NYSE:UA) beat expectations with higher revenue and profit for the second quarter 2011 and company officials raised guidance moving ahead.
The Baltimore-based sportswear company reported revenue up 42 percent to $291.3 million for the second quarter, compared to $204.8 million a year ago. Under Armour’s net income rose to $6.2 million, or $0.12 per diluted share, compared to a profit of $3.5 million, or $0.07 per diluted share a year ago.
The company’s quarterly revenue was boosted by a 36-percent increase in apparel sales to $204.8 million, 31-percent growth in footwear sales to $46.9 million and a 266-percent rise in accessories – the latter primarily driven by the transition of Under Armour’s previously licensed hats and bags business, now in-house, which began in January 2011.
A boost also came from Under Armour’s direct-to-consumer business, up 81 percent year-over-year and now represents 27 percent of the company’s total revenue.
Looking ahead, company officials raised full-year 2011 revenue guidance to a range of $1.42 billion to $1.44 billion, representing growth of 33 percent to 35 percent, from a year ago. Officials had previously forecasted 2011 revenue in a range of $1.37 billon to $1.39 billion, representing growth of 29 percent to 31 percent.
“We recently outlined our strategy to double our net revenues to over $2.1 billion by 2013 and our second quarter performance is indicative of the increased demand for the Under Armour brand that will drive us there,” Under Armour Chairman and CEO Kevin Plank said in a statement. “Our brand communication will expand in the coming months as we build our voice in footwear with Micro G cushioning technology. We will also begin to implement compelling new shop-in-shop formats with our existing retail partners.”
Lafuma up on Millet/Eider and Le Chameau
Lafuma Group reported higher revenue for its 2011 fiscal third quarter on stronger sales of its mountain and country products.
The French outdoor apparel, footwear and gear company reported fiscal third-quarter sales of EUR 43.8 million (USD $63.5 million) – up 2.8 percent from same period a year ago.
By division, Lafuma Group’s outdoor business, Lafuma, fell 2.7 percent for the quarter to EUR 20.8 million (USD $30.1 million), compared to a year ago. The company’s board sports division, Oxbow, fell 8.3 percent to EUR 9.4 million (USD $13.6 million). It’s country segment, Le Chameau, rose 14.4 percent to EUR 3.7 million (USD $5.4 million) and its Mountain division, Millet/Eider, climbed 27.4 percent to EUR 10 million (USD $14.5 million).
Lafuma officials said overall sales accelerated through the period and they expect improved results for its fiscal fourth quarter.
Oakley parent 2Q earnings shine
Luxottica Group (NYSE:LUX), parent firm of the Oakley, Ray Ban and Revo brands, reported higher earnings and profit for the second quarter 2011.
The Italian eyewear company notched second-quarter revenue of EUR 1.63 billion (USD $2.37 billion) – up 2.4 percent from the same period a year ago. Company officials said sales would have increased 9.5 percent if it were not for a 12 percent decline in the value of the dollar versus the euro during the second quarter.
Despite the the unfavorable exchange rates, sales rose 7.5 percent in the United States, officials said.
Luxottica’s net income rose 8 percent in the second quarter to EUR 162.1 million (USD $235.4 million), and its U.S. dollar-earnings-per-share price grew to $0.51, compared to $0.42 a year ago.
–Compiled by David Clucas
(Conversion of euro into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of July 26, 2011)
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