Under Armour FY revenues rise by 3% to $1.4bn

Sportswear company Under Armour has reported that full-year revenues rose by 3% to $5.9bn (£4.6bn), with fourth quarter revenues up by 8% to $1.4bn (£1.1bn).

For the full year, Under Armour reported a 6% increase in wholesale revenues to $3.5bn (£2.7bn). However, there was a -3% decrease in direct-to-consumer revenue to $2.3bn (£1.8bn), due to a 6% decline in owned and operated store revenue that was partially offset by a 3% increase in eCommerce revenue. 

North America revenue decreased by 1% compared to the prior year at $3.8bn (£3bn) meanwhile international revenue increased 8% to $2bn (£1.5bn). 

Apparel revenue decreased 1% to $3.9bn (£3bn), footwear revenue increased 16% to $1.5bn (£1.1bn) and accessories revenue declined 7% to $409m (£324m).

Gross profit was $2.6bn (£2bn) while operating income was $284m (£225m).

For its fourth quarter, the company reported a 10% wholesale revenue increase to $909m (£720m) and a 3% increase in direct-to-consumer revenue to $454m (£360m), due to a 6% increase in eCommerce revenue. North America revenue increased 3% to $862m (£683m) while international revenue increased 16% to $526m (£417m).

Apparel revenue increased 1% to $889m (£705m), footwear revenue increased 27% to $378m (£299m) and accessories revenue declined -1% to $96m (£76m).

Gross profit during Q4 was $606m (£480m) while operating income was $35m (£27m).

In 2024 the company expects revenue to be flat to up slightly while operating income is expected to reach $310m (£245m) to $330m (£261m).

Under Armour president and CEO Stephanie Linnartz, said: “I’m honoured to lead this iconic brand, and I’m pleased that Under Armour delivered fiscal 2023 revenue and earnings results that were in line with our previous outlook. 

“Fiscal 2024 will be a year of building for the brand. I am prioritising significantly amplifying global brand heat, delivering elevated design and products, with a focus on Sportstyle, footwear, and women; and positioning us to drive better sales growth in the United States.”

Linnartz continued: “We will leverage our strong portfolio of franchises, including Heat Gear, Cold Gear, and compression apparel, to drive innovation across new products and markets. We must deliver better for athletes and our customers and meaningfully increase returns for shareholders in the years ahead. My job is to make that vision a reality.”