Under Armour apparel sales growth slows during Q3

REPORT_ American sportswear label Under Armour announced its financial results for the third

quarter ended September 30, 2014, which saw apparel sales grow less rapidly than its previous quarter due to a slow in demand for outdoor clothing.

“Our plans of crossing 3 billion dollars in net revenues and achieving 30 percent growth this year represent significant milestones for the brand, but we believe we are just getting started,” commented Kevin Plank, Chairman and CEO of Under Armour. “ We are delivering consistent top line results while making the right investments to support both the near- and long-term opportunities of the brand.”

Net revenues increased 30 percent to 937.9 million dollars (584.9 million pounds), compared to net revenues of 732 million dollars (456.6 million pounds) from the same period last year. Net income grew 22 percent to 89 million dollars from 73 million in the prior year's period. Diluted earnings per share where 0.41 cents for the third quarter, compared to 0.34 cents from the year before.

International net revenues, which account for 9 percent of the total net revenues for the third quarter, grew 94 percent year-over-year. Third quarter apparel net revenues grew 26 percent to 705 million dollars, up from 561 million dollars, which were primarily driven by expanded product offering and new item innovations including golf and other outdoor activities, reported Under Armour.

“Our strong third quarter results demonstrate the power of the Under Armour brand. The momentum and growing confidence we outlined last quarter in footwear and international were on full display in the third quarter with growth rates accelerating to 50 percent and 94 percent, respectively,” added Plank.

Operating income increased 21 percent to 146 million dollars compared with 121 million dollars in the prior year's period. Gross margin was 49.6 percent compared to 48.4 percent to last year's quarter, bolstered by year-over-year sales mix.

“We believe this balanced approach will continue to drive our global ambitions and long-term value for our shareholders. We are proud of what we have built and continue to see ourselves as a much larger brand than the 3 billion dollars in revenues we are projecting for 2014.”