BALTIMORE, Oct. 27 /PRNewswire-FirstCall/ -- Under Armour, Inc. (NYSE: UA) today announced financial results for the third quarter ended September 30, 2009. Net revenues increased 16.2% in the third quarter of 2009 to $269.5 million compared with net revenues of $231.9 million in the third quarter of 2008. Net income increased to $26.2 million in the third quarter of 2009 compared with $25.7 million in the prior year's period. Diluted earnings per share for the third quarter of 2009 was $0.52 on weighted average common shares outstanding of 50.7 million compared with $0.51 per share on weighted average common shares outstanding of 50.4 million in the third quarter of the prior year.

Third quarter apparel net revenues increased 7.1% to $215.4 million compared with $201.1 million in the same period of the prior year, driven by growth in the Men's, Women's, and Youth apparel businesses. Footwear net revenues in the third quarter of 2009 increased to $33.0 million from $13.1 million in the third quarter of 2008. Direct-to-consumer net revenues, which represented 15% of total net revenues for the quarter, grew 62% year-over-year during the third quarter.

Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "The strength and diversity of our growth platform enabled us to deliver meaningful top line growth during the quarter with all product categories up for the period. Continuing to lead in product innovation and aggressively communicating our authentic position in sports will help ensure that the Under Armour Brand continues to resonate with the athletes of this generation."

For the third quarter, operating income rose to $47.1 million compared with $46.5 million in the prior year's period. Gross margin for the third quarter of 2009 was 49.7% compared with 51.0% in the prior year's quarter. Selling, general and administrative expenses were $87.0 million in the third quarter of 2009 compared with $71.8 million in the third quarter of 2008. The increase in selling, general and administrative expenses was primarily driven by the continued expansion of the Company's factory house outlet stores as well as higher personnel costs.

For the first nine months of 2009, net revenues increased 16.2% to $634.2 million compared with $546.0 million in the prior year. Net income for the first nine months of 2009 increased to $31.6 million compared with $29.9 million in the same period of 2008. Diluted earnings per share for the first nine months of 2009 was $0.62 compared with $0.59 per share in the prior year's period.

Balance Sheet Highlights

Cash and cash equivalents increased $53.2 million to $93.4 million at September 30, 2009 compared with $40.2 million at September 30, 2008. The Company had no borrowings outstanding under its $200 million revolving credit facility at September 30, 2009. Net accounts receivable decreased 4.0% to $145.0 million at September 30, 2009 compared with $151.1 million at September 30, 2008. Inventory at quarter-end decreased 6.6% to $152.8 million compared with $163.6 million at September 30, 2008.

Outlook for 2009

For 2009, the Company had previously estimated annual net revenues of approximately $810 million and diluted earnings per share in the range of $0.80 to $0.82. However, based on its performance year-to-date, the Company is increasing its outlook for 2009.

The Company now anticipates full year net revenues of $830 million to $835 million. Based on higher personnel costs, including increased funding of the Company's performance incentive plan, selling, general, and administrative expenses for 2009 are now expected to grow in the mid-teens on a percentage basis year-over-year, above the Company's previous outlook for growth in the low-teens. Diluted earnings per share for the year is anticipated to be $0.85 to $0.87.

Brad Dickerson, Chief Financial Officer of Under Armour, concluded, "We remain focused on achieving our financial and strategic goals for 2009 while laying the groundwork for 2010 and beyond. Our business model is built on a foundation of profitable growth. We will continue to leverage our brand equity with athletes to capture market share as we align our growing team and resources to achieve greater operational efficiency."

Conference Call and Webcast

The Company will provide additional commentary regarding its third quarter results and 2009 outlook as well as provide a preliminary view on its 2010 outlook during its earnings conference call today, October 27th, at 8:30 a.m. ET. The call will be webcast live at http://investor.underarmour.com/events.cfm and will be archived and available for replay approximately three hours after the live event. Additional supporting materials related to the call will also be available at http://investor.underarmour.com. The Company's financial results are also available online at http://investor.underarmour.com/results.cfm.

About Under Armour, Inc.

Under Armour(®) (NYSE: UA) is a leading developer, marketer, and distributor of branded performance apparel, footwear, and accessories. The brand's moisture-wicking synthetic fabrications are engineered in many different designs and styles for wear in nearly every climate to provide a performance alternative to traditional natural fiber products. The Company's products are sold worldwide and worn by athletes at all levels, from youth to professional, on playing fields around the globe. The Under Armour global headquarters is in Baltimore, Maryland, with European headquarters in Amsterdam's Olympic Stadium, and additional offices in Denver, Hong Kong, Toronto, and Guangzhou, China. For further information, please visit the Company's website at www.underarmour.com.

Forward Looking Statements

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, the development and introduction of new products, and the implementation of our marketing and branding strategies. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "outlook," "potential" or the negative of these terms or other comparable terminology. The forward-looking statements contained in this press release reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to: changes in general economic or market conditions that could affect consumer spending and the financial health of our retail customers; our ability to forecast and manage our growth effectively; our ability to effectively develop and launch new or updated products; our ability to accurately forecast consumer demand for our products; our ability to obtain the financing required to grow our business, particularly when credit and capital markets are unstable; increased competition causing us to reduce the prices of our products or to increase significantly our marketing efforts in order to avoid losing market share; loss of key suppliers or manufacturers or failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner; changes in consumer preferences or the reduction in demand for performance apparel and other products; reduced demand for sporting goods and apparel generally; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; our ability to effectively market and maintain a positive brand image; the availability, integration and effective operation of management information systems and other technology; and our ability to attract and maintain the services of our senior management and key employees. The forward-looking statements contained in this press release reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

(Tables Follow)

    Under Armour, Inc.
    Quarter and Nine Months Ended September 30, 2009 and 2008
    (Unaudited; in thousands, except per share amounts)

    CONSOLIDATED STATEMENTS OF INCOME

                                     Quarter   % of      Quarter   % of
                                      Ended     Net       Ended     Net
                                     9/30/09  Revenues   9/30/08  Revenues
                                     -------  --------   -------  --------

    Net revenues                    $269,546     100.0% $231,946     100.0%
    Cost of goods sold               135,491      50.3%  113,679      49.0%
                                     -------      ----   -------      ----
        Gross profit                 134,055      49.7%  118,267      51.0%

    Operating expenses
      Selling, general and
       administrative expenses        86,992      32.2%   71,788      31.0%
                                      ------      ----    ------      ----

        Income from operations        47,063      17.5%   46,479      20.0%

      Interest expense, net             (466)    (0.2%)     (111)    (0.0%)
      Other income (expense), net         96     (0.0%)   (1,625)    (0.7%)
                                          --     -----   -------     -----

        Income before income taxes    46,693      17.3%   44,743      19.3%
    Provision for income taxes        20,511       7.6%   19,080       8.2%
                                      ------       ---    ------       ---

         Net income                  $26,182       9.7%  $25,663      11.1%
                                     =======       ===   =======      ====

    Net income available per common
     share
    Basic                              $0.52               $0.52
    Diluted                            $0.52               $0.51

    Weighted average common shares
     outstanding
    Basic                             50,046              49,217
    Diluted                           50,749              50,435



                                      Nine                Nine
                                      Months    % of      Months    % of
                                      Ended      Net      Ended      Net
                                     9/30/09  Revenues   9/30/08  Revenues
                                     -------  --------   -------  --------

    Net revenues                    $634,194     100.0% $545,965     100.0%
    Cost of goods sold               335,310      52.9%  281,959      51.6%
                                     -------      ----   -------      ----
        Gross profit                 298,884      47.1%  264,006      48.4%

    Operating expenses
      Selling, general and
       administrative expenses       240,544      37.9%  209,954      38.5%
                                     -------      ----   -------      ----

        Income from operations        58,340       9.2%   54,052       9.9%

      Interest expense, net           (1,909)    (0.3%)     (498)    (0.1%)
      Other income (expense), net       (253)    (0.0%)   (1,514)    (0.3%)
                                        ----     -----   -------     -----

        Income before income taxes    56,178       8.9%   52,040       9.5%
    Provision for income taxes        24,595       3.9%   22,132       4.0%
                                      ------       ---    ------       ---

        Net income                   $31,583       5.0%  $29,908       5.5%
                                     =======       ===   =======       ===

    Net income available per common
     share
    Basic                              $0.64               $0.61
    Diluted                            $0.62               $0.59

    Weighted average common shares
     outstanding
    Basic                             49,731              49,016
    Diluted                           50,585              50,321

    NET REVENUES BY PRODUCT CATEGORY

                                                      Nine     Nine
                             Quarter Quarter          Months   Months
                             Ended    Ended    %      Ended    Ended     %
                            9/30/09  9/30/08 Change   9/30/09  9/30/08 Change

    Apparel                $215,427 $201,085   7.1%  $459,706 $426,480  7.8%
    Footwear                 33,048   13,065 153.0%   127,475   75,629 68.6%
    Accessories              10,760    8,896  21.0%    23,548   22,264  5.8%
                             ------    -----           ------   ------
      Total net sales       259,235  223,046  16.2%   610,729  524,373 16.5%
    Licensing revenues       10,311    8,900  15.9%    23,465   21,592  8.7%
                             ------    -----           ------   ------
      Total net revenues   $269,546 $231,946  16.2%  $634,194 $545,965 16.2%
                           ======== ========         ======== ========

    Under Armour, Inc.
    As of September 30, 2009, December 31, 2008 and September 30, 2008
    (Unaudited; in thousands)

    CONDENSED CONSOLIDATED BALANCE SHEETS


                                           As of      As of        As of
                                          9/30/09    12/31/08     9/30/08
                                          -------    --------     -------
    Assets
    Cash and cash equivalents             $93,376    $102,042     $40,152
    Accounts receivable, net              145,043      81,302     151,086
    Inventories                           152,753     182,232     163,612
    Prepaid expenses and other
     current assets                        16,041      18,023      19,571
    Deferred income taxes                  12,178      12,824      13,364
                                           ------      ------      ------

        Total current assets              419,391     396,423     387,785

    Property and equipment, net            73,557      73,548      70,645
    Intangible assets, net                  6,203       5,470       5,877
    Deferred income taxes                  12,078       8,687       6,703
    Other long term assets                  4,839       3,427       3,876
                                            -----       -----       -----

        Total assets                     $516,068    $487,555    $474,886
                                         ========    ========    ========

    Liabilities and Stockholders'
     Equity
    Revolving credit facility                  $-     $25,000     $15,000
    Accounts payable and accrued
     expenses                             101,206      98,340      96,466
    Current maturities of long term
     debt                                   8,292       7,433       7,602
    Other current liabilities               5,852       2,337      10,656
                                            -----       -----      ------

        Total current liabilities         115,350     133,110     129,724

    Long term debt, net of current
     maturities                             9,985      13,158      14,962
    Other long term liabilities            13,219      10,190      10,425
                                           ------      ------      ------

        Total liabilities                 138,554     156,458     155,111

        Total stockholders' equity        377,514     331,097     319,775
                                          -------     -------     -------

        Total liabilities and
         stockholders' equity            $516,068    $487,555    $474,886
                                         ========    ========    ========

SOURCE Under Armour, Inc.