Under Armour Q2 Earnings Fall; Revenues Up 30%; Backs FY08 Revenue ...

Tag : designer apparels
(RTTNews) - Under Armour, Inc. (UA: News, Chart, Quote ), a designer and manufacturer of apparels, on Tuesday, reported afall in earnings for the second quarter, despite 30% increase innet sales, hurt by considerable rise in operating expenses. Thecompany also reaffirmed its revenue outlook for the fiscal year2008.

The Baltimore, Maryland-based company's net income for the secondquarter was $1.4 million or $0.03 per share, higher than $5.7million or $0.11 per share in the same quarter of the previousyear. On average, fifteen analysts surveyed by First Call/ThomsonFinancial estimated earnings of $0.01 per share.

Net revenues for the second quarter were $156.7 million, up 30%from $120.5 million in the same quarter of last year. Thirteenanalysts' consensus revenue projection was $156.34 million.

Income from operations declined to $3.3 million or 2.1% of revenuesfrom $8.2 million or 6.8% of revenues in the comparable quarter ofthe prior year.

Gross profit for the second quarter grew to $70.9 million from$59.1 million in the year-ago quarter. However, gross margin fellto 45.3% from 49.0% in the preceding year quarter.

Selling, general and administrative expenses increased to $67.6million from $50.9 million in the year ago quarter. Provision forincome taxes fell to $1.1 million from $4.0 million in the year-agoquarter.

For the six-month period, the company's net income was $4.2 millionor $0.09 per share, down from $15.7 million or $0.31 per share inthe corresponding period of the previous year.

Net revenues for the first half improved to $314.0 million from$244.9 million in the preceding year period.

Moving ahead, the company still expects fiscal 2008 net revenues of$765 million - $775 million. Fourteen analysts, on average, expectthe company to report revenues of $767.07 million. The company alsoraised its income from operations outlook to $104.5 million -$105.5 million from its previous forecast of $103.5 million -$104.5 million.

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