Under Armour Inc third quarter results

Under Armour company reported fantastic third quarter results with Net Revenues Increase of 42% to $466 Million.

I am not surprised. If you have been watching any sporting events this year from Golf to Rugby and from Football to Skiing, Under Armour has been a very prominent clothing brand worn by so many sports stars.

Under Armour clothing chairman Kevin Plank stated, “We surpassed a billion dollars in net revenues last year, and the Under Armour brand has already topped that milestone this year through the first three quarters. Our product engines are as strong as ever, as demonstrated by consecutive quarters of 40% plus growth for the first time since 2007. We successfully launched Storm Fleece during the quarter, our cold weather Charged Cotton product. We also elevated our footwear message while continuing to enhance our global distribution network. Our strong results and the early acceptance of new products such as Storm Fleece and our Charge RC footwear give us confidence that the consumer continues to vote for our Brand.”

Under Armour Products

Gross margin declined in the third quarter to 48.4% compared with 50.9% in the prior year’s quarter, mainly due to less favorable apparel product margins and the ongoing impact of the hats and bags transition in 2011.

Selling, general and administrative expenses as a percentage of net revenues were 32.3% in the third quarter of 2011 compared with 33.6% in the prior year’s period, reflecting leverage of corporate services and marketing expenses.

Marketing expenses were similar to the third quarter of 2011 at 10.4% of net revenues compared with 10.9% in the prior year’s quarter.

Third quarter operating income grew 32% to $75 million compared with $57 million in the prior year’s period.

For the first nine months of 2011, net revenues increased 40% to $1.07 billion compared with $763 million in the prior year. Net income for the first nine months of 2011 increased 41% to $64 million compared with $46 million in the same period of 2010. Diluted earnings per share for the first nine months of 2011 were $1.23 on weighted average common shares outstanding of 52.5 million compared with $0.89 per share on weighted average common shares outstanding of 51.0 million in the prior year.

The Company had cash and cash equivalents of $68 million with $30 million of borrowings outstanding under its $300 million revolving credit facility at September 30, 2011. Inventory at September 30, 2011 increased 63% to $319 million compared with $196 million at September 30, 2010. Long-term debt increased to $80 million from $19 million in the prior year’s period, primarily driven by the Company’s completion of the corporate headquarters acquisition in July.

The Company had previously anticipated 2011 net revenues in the range of $1.42 billion to $1.44 billion, representing growth of 33% to 35% over 2010, and 2011 operating income in the range of $155 million to $160 million, representing growth of 38% to 42% over 2010. Based on current visibility, the Company now expects 2011 net revenues of $1.46 billion to $1.47 billion, representing growth of 37% to 38% over 2010, and 2011 operating income in the range of $159 million to $162 million, representing growth of 42% to 44% over 2010. The Company now expects an effective tax rate of approximately 38.4% for the full year, compared to previously provided full year guidance of 40.0% and an effective tax rate of 37.1% for 2010. The Company anticipates fully diluted weighted average shares outstanding of approximately 52.5 million to 52.7 million for 2011.

Mr. Plank concluded, “Our Brand continues to evolve and reach a broader range of consumers, and we believe we are still just scratching the surface of the Brand’s global potential. As we focus on that potential, we will measure our success with an equal focus on driving topline with areas that will drive enhanced profitability and returns through improved management of our overall gross margin and inventory. We will continue to invest in the talent and resources needed to ensure this balanced approach.”

Under Armour gear for kids from celebrity endorsement

I just read a fabulous story about Julio Jones, an American football star that decided that he wanted to give something back to his hometown when he signed his endorsement contract with Under Armour. He demanded in his contract that each year for four years $25,000 of Under Armour products are given to the Foley High football team and the youth football teams in Foley and Elberta where he started his foot balling career. The Foley Hight team fitted its players with jackets, while each youth player received a tight-fit T-shirt, loose-fit T-shirt and backpack by Under Armour.

“It shows what kind of class and character Julio Jones has,” said Foley coach Todd Watson, who coached Jones for three years. “A guy that came out of this community and is proud of where he came from. He wants to give back and you don’t find a lot of those these days.”

“It was just a pleasant surprise, something we weren’t expecting. But it didn’t surprise me, knowing him, his character and where his heart is.”

Fowley youth football players in Under Armour gear (Photo courtesy Lisa Bonifay)

The Foley youth league, which fields teams in the 7-8, 9-10 and 11-12 age groups, distributed product to nearly 200 players.

“It’s phenomenal,” said Brad Gray, president of Foley Youth Football. “There are a lot of kids whose parents have to scrape together the $100 for their kid to play, let alone go and buy Under Armour gear that for many people is expensive stuff.”

The reaction from high school and youth players alike was expectedly thrilled.

“They’re pretty stoked,” Gray said. “And to know that it came from a player that came through Foley football, was an Alabama star and is now in the pros, that was a pretty special gift to them.”

Added Watson: “They were excited. This is the first time we’ve ever been able to do anything like that. To know that it came from a guy who was just here, where they are now, a couple of years ago, means something as well.”

I think it’s fantastic! And somehow I am sure that this fantastic kit will make the team feel great and as a result, they will perform better! Just like the athletes and our selves choosing to wear Under Armour to look good and improve our performance.

 

New Gym in London Hampstead

I was back from holiday! Trousers felt a tight, getting up the stairs made me all puffed and I am sure running after the bus just a few weeks ago was not this hard work!

Too lazy… too much indulchence! That’s it – I really needed to have a talk to my self, get motivated and return to training in a serious way. But I remembered so well – I was so bored with my last gym that I had resigned my membership just before the summer. I really needed to find a new gym somewhere around Hampstead in London that offered something a bit different than the usual chain gyms all offering the same old thing.

My ideal gym would offer a bit more than just a few classes, weights, treadmills and bikes. I desided that I needed a gym where I could train but also get some professional advice on how to feel better as I felt the old back aik at times, my golf swing was not quite what it used to be and I’m not so sure that my body was in total balance nutritionally and physically. Also, having an odd massage available would also be hugely appreciated.

MoveThreeSixty near Hampstead

On my way home from the tube in Swiss Cottage I noticed a new gym that offered all that I had wished for and more – on the menu was also personal training in Hampstead, either at the gym or they could come to me. I went to see the guys at the gym – Move Three Sixty. Met a trainer/nutritionist Hannah and Claude who is a specialist in body alignment and sports specific personal training. I signed up on the spot.

That was last week. I have been for my induction session which I really enjoyed as they did a full MOT on me and my body. I am now ready and motivated to start training! I will keep you posted how it goes…

Armour bite now on sale in the UK

The long awaited Under Armour mouth guard has gone on sale in the UK. Check out my earlier post about this fantastic gum shield product utilising ArmourBite technology.

ArmourBite

There a two different ArmourBite products to choose from. The ArmourBite Mouthguard offers superior protection and should be used in heavy contact sports like rugby and hockey. The lighter product ArmourBi

te Mouthpiece is recommended as performance enhancing for non-contact or light contact sports such as football and training.

The ArmourBite product comes in two sizes. There is a Large one for Adults and a Medium size for junior. There is a sizing guide available to dermine the right size and fit of the product. These products are not recommended to be worn with braces.

Both the products (ArmourBite® Mouthguard, ArmourBite® Mouthpiece) retail at £50.00 or you can buy the ArmourBite® Performance Product with both products for £90.00. And to top it all, the ArmourBite® Mouthguard product comes with a $32,000 dental warranty!!

 

Canterbury baselayers

The cricket season has started and the kids have grown out of their whites! Time to buy some new gear…

I took a quick look on the web on the stuff available and although most of it looks pretty good, I have gone back to my all time favourite base layers from Canterbury of NZ.

Canterbury Base Layers

They do just what is says on the tin. They provide you with the first layer of clothing to be worn under your whites. You need this stuff in this country as even on the nicest of days, when the sun starts going down, the damp gets you unless you are prepared and can put on some base layers to keep you both warm and dry.

I got a couple of Canterbury short sleeve hot gear base layers, a long sleeve one and even a pair of sweat pants to pull on top of the whiles to warm you up after coming off from fielding. I got everything is a bit bigger size as this stuff washes so well and keeps for ages. Shame the kids grow out of it so fast. But these are perfect hand me downs to younger siblings, cousins and friends’ children. And if nothing else, these are items that the charity shops can make a bob or two very quickly and not just this time of the year. This is popular gear all year around.

Under Armour Heatgear

The weather is getting warmer and it is time to update my summer  sports kit! Out with the old, in with the new – and what a year it has been for some brands like Under Armour!

A couple of years ago the likes of Nike and Adidas totally dominated the sports kit market. Under Armour – an American sportswear brand – was only worn by people who had come across it on their travels or noticed the brand been worn by some of the top US atheletics. But Under Armour was planning to take on the BIG brands worldwide, not just in the US. They started with a couple of good distributors in the UK, followed by a couple of cleaver sponsorship deals such as the Welsh Rugby Team. Recently they announced their latest sponsored shirt deal in London with the Tottenham Hot Spur football team.

There are also individual sponsorship deals with celebrities helping their profile. Tom Brady – the american football star – and Vanessa Minnillo – the TV presenter and former Beauty Queen in the US – are just some of the latest stars to endorse the brand.

But it is not just the sponsorship deals that have bought them new customers in large numbers. Under Armour is also winning because of the superior quality of the product. The fantastic concept of Coldgear and Heatgear that keep you either warm or cool depending on your circumstances has clearly made sportswear more of a pleasure. Their designs are also very much up to date with a choice of fits, styles and colours to choose from.

Anyway, I am a great fan of the Under Armour stuff – as is my personal trainer in London – and we will both be pulling on our new Heatgear tops as soon as they arrived by post. It is almost impossible to think of pulling on a cotton t-shirt for any exercise session once you get used to wearing this highly wicking gear that is becoming hugely popular with men, women and children not just in the US but in the UK and all over Europe.

 

 

Under Armour Mouthguards

Armour Bite by Under Armour

There is a new product coming out in the UK from Under Armour. In partnership with ArmourBite, they are launching a new Under Armour mouthguard – or gumshield – product using Bite Tech’s patented technology. It’s an innovative new type of gumshields designed not just to protect but to improve athletic performance.

This UA Mouthguard can help athletes to improve their strength and endurance as well as reaction time reducing stress and impact from any blows to the jaw.

In the past this type of equipment was used by the likes of boxers and other “heavy duty” sportsmen. But soon other sports discovered the benefits of protecting teeth and jaws from heavy blows. Soon this kind of protection became standard issue also for children playing contact sports. Now a days schools insist on mouthguards for all children playing rugby at school.

The technology used in the Under Armour ArmourBite gumshields is high tech and has been developed over many years. There are many professional sportsmen and women that have been using Bite Tech’s performance mouthwear products for years. This product has taken years to develop as Bite Tech has kept on conducting independent studies at many of the nation’s top universities and research centres, including The Citadel and IMG Academies, and they have proven the science behind the ArmourBite Technology found in the UA Performance mouthwear.

It is not un-expected that product has chosen to be included to complement the Under Armour sportswear product range. They are well known for high quality sports apparel. “Under Armour is the perfect partner because we share their missions of using innovation to make all athletes better”, said Bob Molhoek, CEO of Bite Tech. “We are thrilled to launch this technology under one of the most popular brands in sports.”

This product does not come chap though. To produce it requires the services of a professional dentist, it is not a “mould it at home” product. The price will make it more suitable for adults with a fully developed jaw and teeth, rather than children who need a new one every year as their teeth develop and jaw is still growing.