Under Armour Q1 Earnings Declines, Revenue Up, Beats View; Raises 2015 Forecast

(RTTNews) - Under Armour, Inc. (UA) Tuesday announced a 13 percent decline in first quarter net income to $11.73 million from $13.54 million last year. Earnings per share were $0.05, down from $0.06 last year. The results reflect higher interest expenses and other expenses compared to the prior year.

On average, 26 analysts polled by Thomson Reuters expected the company to earn $0.05 per share. Analysts estimates usually excludes special items.

Net revenue increased 25 percent to $805 million from $642 million year ago. On a currency neutral basis, revenue was up 27 percent. The company attributed the increase to higher apparel revenue due to new product introductions in baselayer and training, with higher contributions from footwear, and accessories revenue. Analysts were looking for $802.53 million.

Looking ahead to 2015, Under Armour now expects net revenue of approximately $3.78 billion, representing growth of 23% over 2014. Earlier the company was looking for $3.76 billion, up 22 percent. Wall Street expects $3.82 billion.

Operating income is currently expected to be in the range of $400 million to $408 million, up 13% to 15% over 2014, while the earlier forecast was 12 to 15 percent. The improved guidance reflects the net dilutive impact from the Connected Fitness acquisitions, including one-time deal-related costs, as well as strong dollar.