For the second quarter ended June 30, Under Armour has reported a 24 percent increase in turnover to $204.8 million, coming from very strong growth in apparel and direct-to-consumer sales. Operating income jumped by 104 percent to $6.9 million, and the gross margin rose by 4.0 percentage points to 48.8 percent. Earnings skyrocketed by 150 percent to $3.5 million, surpassing the expectations of financial analysts.
The apparel segment had revenues of $150.2 million, 34 percent higher than last year, and direct-to-consumer was up by 60 percent. Footwear slumped by 4.5 percent to $37.5 million, which the company had expected, warning earlier that running and training shoes would be down this year.
In light of the good results and better visibility looking forward, Under Armour has revised its guidance for 2010 to sales of $990 million-$1.01 billion, up from previous expectations of $956-985 million.
