Under Armour revenues dip 2% in Q1
Gross margins declined during Q1 to 46.1% due to higher promotions and ‘adverse’ effects from changes in foreign currency
Under Armour revenues were down 2% to $1.3bn (£1.02bn) for the first quarter of FY24, despite the sportswear brand’s international business growing its revenue by a total of 12% to $485m (£380m).
This comes as the company’s North America revenues decreased by 9% to $827m (£648m).
Within the international business, revenue increased 10% in EMEA, 14% in Asia-Pacific, and 13% in Latin America.
According to the group, direct-to-consumer revenue increased 4% to $544m (£426m) due to a 6% increase in ecommerce revenue, which represented 40% of the total direct-to-consumer business in the quarter. However, revenue still decreased 6% to $742m (£581m).
Furthermore, revenue drawn from clothing decreased a further 5% to $825m (£646m), yet was buoyed by a revenue increase of 5% to $364m (£285m) within footwear. Accessories revenue also increased 1% to $98m (£76m).
Gross margins declined during Q1 to 46.1% due to higher promotions and “adverse” effects from changes in foreign currency.
By the end of Q1, the group’s operating income stood at $21m (£16m) and its net income at $9m, with inventory up 38% to $1.3bn (£1.02bn).
While the group has not announced any outlook changes for FY24, revenue is expected to be “flat to up slightly”.
Stephanie Linnartz, president and CEO of Under Armour, said: “We’re pleased with how we have navigated our start to fiscal 2024. Our international and direct-to-consumer businesses, both of which realised solid growth in the quarter, continue to deliver.
“Based on this performance, we are maintaining our outlook for fiscal 2024. I am confident that we will achieve the improved growth and profitability this brand is capable of over the long run.”
