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Under Armour has lowered its sales outlook despite seeing its revenues increase 2% to $1.6bn (£1.4bn) in the second quarter of 2022 ending September 30.
Wholesale revenue increased 4% to $948m (£844m) and direct-to-consumer revenue decreased 4% to $577m (£514m) dollars due to a 9% decline in owned and operated store revenue partially offset by a 4% increase in ecommerce revenue, which represented 36% of the total direct-to-consumer business during the quarter.
Apparel revenue decreased 2% to $1bn (£890m), footwear revenue increased 14% to $376m (£335) and accessories revenue fell 12% to $111m (£99m).
As a result, the company has revised its outlook for the year ahead due primarily to a more challenging retail environment and additional negative impacts from changes in foreign currency.
The company said revenue is expected to grow at a low single-digit percentage rate compared to the previous expectation of 5% to 7% growth. Gross margin remains unchanged from the previous outlook of a 375 to 425 basis point decline.
Under Armour interim president and CEO, Colin Browne, said: “We’re pleased to have delivered second-quarter results that were in line with our expectations. While we anticipate the immediate macroeconomic backdrop to stay uncertain – we are taking a balanced approach to mitigate near-term pressures while continuing to focus on the long-term strength of our brand.”
