Under Armour reported an increase of 16.2 % in net revenues for the third quarter ending 9/30/2009. While concentrating on lowering inventory levels and increasing cash flow Under Armour has outperformed itself in hard economic times. It was noted that although the overall increase in sales, revenuesm and profits there was a substantial increase in the selling, general and administrative expenses. Higher personnel costs and the continued expansion of the company's outlet stores were given as reasons for this. Below is the link to the press release which includes consolidated financial statements.
http://investor.underarmour.com/releasedetail.cfm?ReleaseID=418803
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Arianne-- I was wondering if lower prices contributed to that dramatic increase in sales or the web redesign that you mention in your next post?
ReplyDeleteIt appears that at least half the increase is a direct result of their footwear segment...have you seen anything that shows the margins by product category? The reduction in their margins could be a combined result of lower prices and lower margins in the footwear products.
ReplyDeleteIt might be a result of the opening of more store front outlets and the online outlet. Other than that UA in general stays away from price decreases because they want their customers to feel they are buying a premium brand unlike any other.
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