Charged Cotton helps lift Under Armour results
The launch in early 2011 of a high performance apparel line named ‘Charged Cotton’ has helped US-based sportswear maker Under Armour to a 68% jump in first quarter profits.
The also raised its guidance for the full year, and says it expects revenues in the range of $1.37 billion to $1.39 billion – a growth of 29% to 31% over 2010 – and operating income up 33% to 36% to between $149 million and $153 million.
The raised outlook comes after the company booked a net income of $12.1 million in the three months to 31 March, up from $7.2 million in the same period last year.
Net revenues increased 36% to $312.7 million, from $229.4 million last time. Apparel revenues were up by 34% to $230.5 million, while direct-to-consumer sales grew 53% year-over-year. Footwear sales increased 20% to $51.4 million.
“The launch of Charged Cotton to date shows that we can change category expectations, while broadening the overall market opportunity for the brand,” said CEO Kevin Plank.
“At the same time, we continue to see opportunities to better meet consumer demand through enhanced execution with our existing retail partners as well as through our own direct-to-consumer channel.”
The Charged Cotton range, which was launched at the end of January, includes men’s and women’s shirts and shorts made from a cotton/elastane fabric.
