Under Armour Gains After Raising Sales, Profit Forecasts
Under Armour Inc. (UA), the maker of athletic apparel and shoes, advanced the most in more than 10 months after raising its annual sales and profit forecasts as new products catch on with consumers.
The shares rose 9.1 percent to $52.79 at the close in New York for the largest gain since Aug. 26. Under Armour has increased 47 percent this year.
Chief Executive Officer Kevin Plank has introduced new products, including womens’ underwear and ColdBlack polo shirts. Sales for 2012 will be as much as $1.82 billion compared to a previous forecast of a maximum of $1.8 billion, the Baltimore- based company said today in a statement. Analysts’ projected $1.81 billion, the average of estimates compiled by Bloomberg.
Operating income may total as much as $207 million, up from a previous projection of as much as $205 million.
Second-quarter net income rose 6.8 percent to $6.67 million, or 6 cents a share, from $6.24 million, or 6 cents, a year earlier. Analysts projected 5 cents, the average of 27 estimates compiled by Bloomberg. Gross margin, or the percentage of sales left after cost of goods sold, declined to 45.9 percent from 46.3 percent a year ago.
Sales rose 27 percent $369.5 million in the quarter. Analysts projected $358.5 million.
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