Year Ended December 31, 2005 Compared to Year Ended December 31, 2004 Net revenues increased $75.9 million, or 37.0%, to $281.1 million in 2005 from $205.2 million in 2004.
This increase was the result of increases in both our net sales and license revenues as noted in the product category table below.
## Table 0 ##
Net sales increased $70.4 million, or 35.1%, to $271.3 million in 2005 from $200.9 million in 2004 as noted in the table above.
The increases in the mens, womens and youth product categories noted above primarily reflect: ?
continued unit volume growth of our existing products sold to retail customers, while pricing of existing products remained relatively unchanged; and ?
new products introduced in 2005 accounted for $29.0 million of the increase in net sales which included the Metal series, Under Armour Tech-T line and our performance hooded sweatshirt for mens, womens and youth, and our new women’s Duplicity sports bra.
License revenues increased $5.5 million to $9.8 million in 2005 from $4.3 million in 2004.
This increase in license revenues was a result of increased sales by our licensees due to increased distribution, continued unit volume growth and new product offerings.
Gross profit increased $40.5 million to $135.9 million in 2005 from $95.4 million in 2004.
Gross profit as a percentage of net revenues, or gross margin, increased 180 basis points to 48.3% in 2005 from 46.5% in 2004.
This net increase in gross margin was primarily driven by the following: ?
a 70 basis point increase due to the $5.5 million increase in license revenues; ?
a 240 basis point increase due to lower product costs as a result of greater supplier discounts for increased volume and lower cost sourcing arrangements; ?
a 50 basis point decrease driven by larger customer incentives, partially offset by more accurate demand forecasting and better inventory management; and ?
a 70 basis point decrease due to higher handling costs to make products to customer specifications for immediate display in their stores and higher overhead costs associated with our quick-turn, Special Make-Up Shop, which was instituted in June 2004.
Selling, general and administrative expenses increased $29.9 million, or 42.7%, to $100.0 million in 2005 from $70.1 million in 2004.
As a percentage of net revenues, selling, general and administrative expenses increased to 35.6% in 2005 from 34.1% in 2004.
This net increase was primarily driven by the following: ?
Marketing costs increased $8.7 million to $30.5 million in 2005 from $21.8 million in 2004.
The increase in these costs was due to increased advertising costs from our women’s media campaign, marketing salaries, and depreciation expense related to our in-store fixture program.
As a percentage of net revenues, marketing costs increased slightly to 10.9% in 2005 from 10.6% in 2004 due to the increased costs described above.
The weighted average fair value of a stock option granted for the years ended December 31, 2007, 2006, and 2005 was $22.88, $17.14, and $1.57, respectively.
The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:
## Table 1 ##
Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, including estimates relating to assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.
Fair Value of Financial Instruments The carrying amounts shown for the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short term maturity of those instruments.
The fair value of the long term debt approximates its carrying value based on the variable nature of interest rates and current market rates available to the Company.
Guarantees and Indemnifications In the ordinary course of business, the Company may enter into service agreements with service providers in which it agrees to indemnify the service provider against certain losses and liabilities arising from the service provider’s performance under the agreement.
Generally, such indemnification obligations do not apply in situations in which the service provider is grossly negligent, engages in willful misconduct, or acts in bad faith.
The Company was not aware of any material indemnification liability under such service agreements for the years ended December 31, 2007 and 2006.
Recently Issued Accounting Standards In December 2007, the SEC issued SAB No.110, Share-Based Payment (“SAB 110”).
SAB 110 amends SAB 107, and allows for the continued use, under certain circumstances, of the “simplified method” in developing an estimate of the expected term on stock options accounted for under SFAS 123R.
SAB 110 is effective for stock options granted after December 31, 2007.
The Company is currently evaluating the impact of the new provisions of SAB 110 for stock option awards granted in the future.
In February 2007, the FASB issued SFAS No.159, The Fair Value Option for Financial Assets and Financial Liabilities—Including an amendment of FASB Statement No.115 (“SFAS 159”).
SFAS 159 permits entities to choose to measure many financial instruments and certain other assets and liabilities at fair value on an instrument-by-instrument basis.
SFAS 159 is effective for fiscal years beginning after November 15, 2007.
The Company does not believe that the adoption of SFAS 159 will have a material impact on its consolidated financial statements.
In September 2006, the FASB issued SFAS No.157, Fair Value Measurements (“SFAS 157”), which defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements.
SFAS 157 is effective for fiscal
For the years ended December 31, 2007, 2006 and 2005, $0.5 million, $0.8 million and $1.4 million, respectively, of depreciation and amortization on assets under capital leases was included in depreciation and amortization expense.
Sponsorships and Other Marketing Commitments Within the normal course of business, the Company enters into contractual commitments in order to promote the Company’s brand and products.
These commitments include sponsorship agreements with teams and athletes on the collegiate and professional levels, official supplier agreements, athletic event sponsorships and other marketing commitments.
The following is a schedule of the Company’s future minimum payments under its sponsorship and other marketing agreements as of December 31, 2007:
## Table 2 ##
The amounts listed above are the minimum obligations required to be paid under the Company’s sponsorship and other marketing agreements.
Some of the these agreements provide for additional incentives based on performance achievements while wearing or using the Company’s products and may also include product supply obligations over the terms of the agreements.
Other The Company is, from time to time, involved in routine legal matters incidental to its business.
Management believes that the ultimate resolution of any such current proceedings and claims will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.
Certain key executives are party to agreements with the Company that include severance benefits upon involuntary termination or change in ownership of the Company.8.
Stockholders’ Equity In November 2005, the Company completed an initial public offering and issued an additional 9.5 million shares of common stock.
As part of the initial public offering, 1.2 million outstanding shares of Convertible Common Stock held by Rosewood entities were converted to Class A Common Stock on a three-for-one basis.
The Company received proceeds of $112.7 million net of $10.8 million in stock issue costs, which it used to repay the $25.0 million term note, the balance outstanding under the revolving credit facility of $12.2 million, and the Series A Preferred Stock of $12.0 million.
As part of a recapitalization in connection with the initial public offering, the Company’s stockholders approved an amended and restated charter that provides for the issuance of up to 100.0 million shares of Class A common stock and 16.2 million shares of Class B Convertible Common Stock, par value $0.0003 1/3 per share, and permits amendments to the charter without stockholder approval to increase or decrease the aggregate number of shares of stock authorized, or the number of shares of stock of any class or series of stock authorized, and to classify or reclassify unissued shares of stock.
In conjunction with the initial public offering, 1.0 million shares of Class B Convertible Common Stock were converted into shares of Class A Common Stock on a one-for-one basis in connection with a stock sale.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="4"> Year Ended December 31,</td></tr><tr><td>  <i>(In thousands)</i> </td><td> 2005</td><td> 2004</td><td> $ Change</td><td> % Change</td></tr><tr><td>Mens</td><td>$189,596</td><td>$151,962</td><td>$37,634</td><td>24.8%</td></tr><tr><td>Womens</td><td>53,500</td><td>28,659</td><td>24,841</td><td>86.7%</td></tr><tr><td>Youth</td><td>18,784</td><td>12,705</td><td>6,079</td><td>47.8%</td></tr><tr><td>Accessories</td><td>9,409</td><td>7,548</td><td>1,861</td><td>24.7%</td></tr><tr><td>Total net sales</td><td>271,289</td><td>200,874</td><td>70,415</td><td>35.1%</td></tr><tr><td>License revenues</td><td>9,764</td><td>4,307</td><td>5,457</td><td>126.7%</td></tr><tr><td>Total net revenues</td><td>$281,053</td><td>$205,181</td><td>$75,872</td><td>37.0%</td></tr></table>
<table><tr><td></td><td colspan="3"> Year Ended December 31,</td></tr><tr><td></td><td>2007</td><td>2006</td><td> 2005</td></tr><tr><td>Risk-free interest rate</td><td>4.5% – 4.6%</td><td>4.6% – 5.0%</td><td>3.9% – 4.4%</td></tr><tr><td>Average expected life in years</td><td>5.5 – 6.5</td><td>5.5 – 6.5</td><td>5.0</td></tr><tr><td>Expected volatility</td><td>44.4%</td><td>44.6% – 46.1%</td><td>0% – 48.1%</td></tr><tr><td>Expected dividend yield</td><td>0%</td><td>0%</td><td>0%</td></tr></table>
<table><tr><td><i>(In thousands)</i></td><td>December 31,  2007</td></tr><tr><td>2008</td><td>$14,684</td></tr><tr><td>2009</td><td>14,660</td></tr><tr><td>2010</td><td>13,110</td></tr><tr><td>2011</td><td>10,125</td></tr><tr><td>2012 and thereafter</td><td>1,005</td></tr><tr><td>Total future minimum sponsorship and other marketing payments</td><td>$53,584</td></tr></table>

Question: what was the percent of growth in gross profit from 2004 to 2005\\n
Answer: 0.42453
Reasoning program: divide(40.5,95.4)