Under Armour, Inc. today announced financial results for the fourth quarter ending December 31, 2011. Net revenues increased 34% in the fourth quarter of 2011 to $403 million compared with net revenues of $301 million in the prior year’s period. Net income increased 42% in the fourth quarter of 2011 to $33 million compared with $23 million in the prior year’s period. Diluted earnings per share for the fourth quarter of 2011 were $0.62 on weighted average common shares outstanding of 52.7 million compared with $0.44 per share on weighted average common shares outstanding of 52.0 million in the prior year’s period.
Fourth quarter apparel net revenues increased 27% to $323 million compared with $254 million in the same period of the prior year, driven by continued strength in Fleece and the expanded Charged Cotton platform. Direct-to-Consumer net revenues, which represented 38% of total net revenues for the fourth quarter, grew 50% year-over-year. Fourth quarter footwear net revenues increased 43% to $31 million from $22 million in the prior year’s period, primarily reflecting new 2011 introductions in running footwear. Fourth quarter accessories net revenues increased 149% to $37 million from $15 million in the prior year’s period, primarily driven by the in-house transition of the Company’s previously licensed hats and bags business which commenced in January 2011.
Gross margin for the fourth quarter of 2011 was 51.6% compared with 51.7% in the prior year’s quarter reflecting less favorable North American wholesale apparel product margins along with the ongoing impact of the hats and bags transition in 2011. Selling, general and administrative expenses as a percentage of net revenues were 37.9% in the fourth quarter of 2011 compared with 40.0% in the prior year’s period, largely reflecting leverage of corporate services. Marketing expenses for the fourth quarter of 2011 were 10.9% of net revenues compared with 11.1% in the prior year’s quarter. Fourth quarter operating income grew 57% to$55 million compared with $35 million in the prior year’s period.