(Filed Under Financial and General Interest News). Baltimore-based activewear company Under Armour reported 42 percent growth in net revenues in the second quarter ended June 30.
Revenues came in at $291.3 million compared with $204.8 million in the year-ago period. Apparel net revenue grew 36 percent to $204.8 million from $150.2 million last year. Footwear revenue increased 31 percent to $46.9 million from $35.8 million, and accessories soared 266 percent to $32.4 million from $8.9 million.
Second quarter gross margin fell from 48.8 percent in the prior year’s period to 46.3 percent, which the company said was due to apparel product margins and a lower mix of net revenues from licensing businesses. A higher percentage of revenues from the direct-to-consumer channel helped offset this decrease.
"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," stated Kevin Plank, the chairman, chief executive officer and president of Under Armor, Inc. "2011 is a year where we are on the offensive to better meet the high expectations of our consumers, and we will continue to invest in operational initiatives that will help build a multibillion-dollar global platform."
Based on second-quarter performance, Under Armour, Inc. raised its 2011 net revenues guidance to $1.44 billion from $1.42 billion and its operating income guidance to $160 million from $155 million.
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