* Says 2013 benefits will not recur in 2014
* Forecasts 2014 revenue growth of 24-25 pct
* Shares fall as much as 10 pct
(Adds details from conference call, analyst comments; updates
By Maria Ajit Thomas
April 24 Athletic gear maker Under Armour Inc
warned that growth in 2014 might not be as strong as last
year when the company benefited from the relaunch of its bags
business and robust winter sales.
Under Armour' shares traded down as much as 10 percent after
the company's downbeat comments. They had been up as much as 8
percent in premarket trade after the company reported a
better-than-expected quarterly profit.
Chief Financial Officer Brad Dickerson said the 2014 first
quarter benefited from comparisons with the year-ago period,
when the company was pulling back on its bags business ahead of
a relaunch in the second quarter.
"By the time you get (to) the second quarter we start to see
tougher comps ...," Dickerson said on a post-earnings call.
Benefits from the company's supply chain improvements also
began to flow in from the second quarter of 2013.
Under Armour's revenue grew 23 percent in the second quarter
of 2013, 26 percent in the third quarter and 35 percent in the
"We'll still see very robust results (but) maybe not quite
as explosive as we saw in this quarter," Cowen and Co analyst
Faye Landes said.
Revenue jumped 36 percent to $641.6 million in the first
quarter of 2014, ahead of analysts' estimate of $598.8 million.
Landes said though the results were strong, investors are
going to be very picky as the company trades at a very high
The stock trades at over 53 times its forward earnings,
compared with an average multiple of about 21 for its peers,
which include Nike Inc, Lululemon Athletica Inc
and Foot Locker Inc.
Under Armour raised its revenue forecast to $2.88-$2.91
billion for the year, representing growth of 24-25 percent, from
the $2.84-$2.87 billion it forecast in January.
Analysts on average are expecting revenue of $2.89 billion,
according to Thomson Reuters I/B/E/S.
Under Armour's revenue grew 27 percent in 2013.
The growing popularity of sportswear, particularly among
women, and rising health consciousness have helped to push up
demand for Under Armour's athletic apparel.
Revenue from apparel jumped 33 percent to $459 million in
the first quarter ended March, constituting about 72 percent of
Under Armour's clothing lines include HeatGear, which draws
moisture away from the body to help the wearer stay cool and
dry, and the ColdGear Infrared range that uses a ceramic coating
to retain body heat in cold weather.
The company's net income rose to $13.5 million, or 6 cents
per share, in the quarter, from $7.8 million, or 4 cents per
share, a year earlier.
Analysts on average had expected a profit of 4 cents per
The company's shares were down 8 percent at $50.07 in
afternoon trade. They have nearly doubled in the year to
(Reporting by Maria Ajit Thomas in Bangalore; Editing by Sriraj
Kalluvila and Maju Samuel)