Rising expenses take toll on Under Armour Q2 profits

Baltimore – Even a reduction in income taxes couldn’t fully offset the impact of rising expenses on profit at Under Armour during the second quarter of fiscal 2015. Net income decreased 17% to $15 million, compared with $18 million in the prior year's period.



The decline in net income came even as net revenues increased 29% to $784 million, compared with $610 million. Direct-to-consumer net revenues, which represented 32% of total net revenues for the second quarter, grew 33% year-over-year.



“We continue to align our strategy to attack key growth categories and drive deeper connections with the athlete,” said Kevin Plank, chairman and CEO. “Some of these powerful connections are already evident across our distribution, where we are investing in expanded relationships with our key sporting goods and mall partners, as well as supporting our own direct-to-consumer capabilities including new Brand House openings. It also means continuing to build one of our key foundations for future growth with our Connected Fitness digital health and fitness community."