BALTIMORE – Athletic clothing gear maker Under Armour said Thursday its second-quarter net income edged up less than 1 percent, hurt by marketing and new product expenses.
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But the company raised its revenue guidance for the year and shares jumped 15 percent in midday trading.
The Baltimore-based company reported profit of $17.7 million, or 8 cents per share, compared with $17.6 million, or 8 cents per share, in the same quarter a year ago. Analysts expected 7 cents per share, according to FactSet. Planned timing of marketing and new product expenses ate into profit.
Still, revenue jumped 34 percent to $609.7 million from $454.5 million in the same quarter a year ago, much higher than analyst expectations of $573.8 million. The strongest categories were golf, outdoor, running, training, and women's studio products.
Looking forward, Under Armour now expects 2014 revenue of $2.98 billion to $3 billion, from prior guidance of $2.88 billion to $2.91 billion. Analysts expect revenue of $2.93 billion.
Shares rose $9.55, or 15.8 percent, to $70.18 in midday trading. The stock is up about 60 percent in the year to date.