Tomahawk, WI 7/26/2013 (Basicsmedia) – The sportswear, athletic shoes and casual apparel giant Under Armour, INC (NYSE:UA) has announced its 2Q2013 results on July 25, 2013 which has surpassed the expectations.

Speaking during the webinar, Kevin Plank, Founder, Chairman and CEO of Under Armour said “Under Armour Apparel grew by 20% in 13th straight and the total revenues grew at 20%.”

UA Beats Expectations

Market analysts too said that Under Armour has beaten the Wall Street expectations and also beat the mean analyst estimations as well. Wall Street pundits predicted that the UA’s average estimated revenue would somewhere around $448.96 million whereas the company has reported revenue of $454.5 million. This is a substantial jump by 23.01% as compared to the same period during previous fiscal year. Analysts have further opined that the financial figures and the growth rate posted by the company sends positive signals to its stakeholders.

CEO’s Statement

Kevin Plank said that the growth rate has been fueled not only by the existing portfolio of products but also by the new categories like athletic footwear. He attributed the positive growth to 3 key themes i.e. (i) long-term strategy, (ii) strong run by the top line and (iii) great opportunities in North America for Apparel segment to grow. Kevin said that the strategies that were presented to the stakeholders during the recently conducted Investors Day meeting at Baltimore are yielding the desired results.

1Q2013 Vs. 2Q2012

The results announced by Under Armour has shown Adjusted Earnings Per Share that increased by 166.67% from the year-earlier quarter’s $0.06 to $0.16. This has beaten the mean analyst expectation of $0.14.

On the other hand revenue has got decreased by 3.63% when compared to the previous quarter i.e. 1Q2013but the EPS has gone upwards by 128.57% from the previous quarter’s $0.07.

UA’s Roadmap For Future

As per Kevin Plank, company is looking to shell considerable amount of money in creating new infrastructure for Footwear segment. He also said that more investments would be made in North America with an anticipation of laying a strong foundation for Apparel and Footwear businesses. He said that the company is aiming to earn revenue of $4 billion by 2016.

Under Armour is planning to strengthen its hold not only in Men, Women, Kids apparels but also in Youth apparels as well. It is also expecting to increase the revenue earnings from the Footwear segment. Kevin says that the management of UA wants the consumers to reckon them as a global brand.

Analysts’ Viewpoint

Business analysts seem to be taking a neutral stance on the next quarter results and also on the overall performance of United Armour. One of the reasons for this neutral outlook would be the unchanged earnings by the company over the past few quarters. The average estimation of company’s profit earning has remained constant at $0.07. The last ninety days profit change has shown a marginal gain from $1.46 to $1.47.

As of July 25, 2013 Under Armour’s closing stock price is at $69.38 with 7.55% up from the previous closing.

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