CORRECTED - UPDATE 2-Under Armour quarterly profit, revenue rise

Tue Jul 31, 2007 12:03pm EDT
 
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(Corrects second last paragraph to show shops are within other stores)

(Adds details, company comment, updates stock price)

CHICAGO, July 31 (Reuters) - Sports apparel maker Under Armour Inc (UA.N) on Tuesday posted a higher-than-expected quarterly profit and raised its full-year outlook after strong sales across its product lines, sending its shares up about 15 percent.

Second-quarter profit rose to $5.7 million, or 11 cents per share, from $2.4 million, or 5 cents, a year ago. Revenue rose to $120.5 million from $79.97 million.

Analysts on average forecast a profit of 3 cents a share on revenue of $105.5 million, according to Reuters Estimates.

Apparel revenue rose 53.4 percent for the quarter. Footwear revenue, largely benefiting from increased sales of football cleats, increased 28.9 percent to $20.1 million.

Under Armour also raised its outlook for full-year revenue to a range of $580 million to $590 million from a previous target of $560 million to $580 million.

The company raised its full-year forecast for income from operations to a range of $79 million to $81 million from its previous forecast of $74.5 million to $77.5 million.

"Our Men's and Women's results during the first half of the year were bolstered by strong growth among our core Heat Gear compression styles. For the second half of the year, we are also anticipating robust growth in (these) styles, specifically the more seasonally relevant Cold Gear," Chief Financial Officer Wayne Marino said.

The company plans to open more than 75 Under Armour shops within other stores in cities throughout the United Kingdom, Germany, France and Spain by the end of the year.

Under Armour shares were up $7.53, or 13.7 percent, at $62.71 after hitting a session high of $64.21.

 

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