Under Armour Q1 tops estimates
Under Armour posted better-than-expected second-quarter earnings and revenue amid rising sales in its direct-to-consumer and international business.
Under Armour Inc. blew past earnings estimates for its fiscal first quarter on Tuesday, posting a small profit instead of an expected loss,
The athletic performance apparel, footwear and accessories brand reported net income of $8.549 million, or $0.2 a share, for the quarter ended June 30, up from $7.682 million, or $0.2 a share, in the year-ago period. Analysts had predicted a loss per share of $0.02.
Revenue fell 2% to $1.317 billion from $1.349 billion a year ago, ahead of estimates of $1.294 billion. North America revenue fell 9% to $827 million, and international revenue increased 12% to $485 million.
Wholesale revenue decreased 6% to $742 million. Direct-to-consumer revenue increased 4% to $544 million due to a 6% increase in eCommerce revenue, which represented 40% of the total direct-to-consumer business in the quarter, and a 3% increase in owned and operated store revenue.
Apparel revenue decreased 5% to $825 million, and footwear revenue rose 5% to $364 million. Accessories revenue rose 1% to $98 million.
“Our international and direct-to-consumer businesses, both of which realized solid growth in the quarter, continue to deliver aside a challenging consumer retail environment in North America,” stated Stephanie Linnartz, who took the reins as CEO of Under Armour in February 2023.
Linnartz added that the company has taken several important steps in line with its “Protect This House 3” strategy, which she announced in May and is focused on driving greater global brand awareness and delivering elevated design and products to reaccelerate North American while maintaining momentum in global markets.
The steps include leadership changes, amplifying storytelling to drive global brand heat, and optimizing its product engine “to deliver elevated design and groundbreaking innovations that athletes covet,” she said.
Based on its first quarter performance, Under Armour said it was maintaining its outlook for fiscal 2024.” The company expects revenue to be flat to slightly higher and for earnings per share to range from $0.47 to $0.51.