Sportswear Brand Navigates Declining North America Sales and Currency Impacts

  • Under Armour’s Q1 revenues dipped 2% to $1.3bn
  • International business grew by 12% to $485m
  • North America revenues decreased by 9% to $827m
  • Ecommerce revenue increased by 6% to $544m
  • Revenue from clothing fell 5% to $825m
  • Footwear revenue rose 5% to $364m
  • Accessories revenue grew 1% to $98m
  • Gross margins declined to 46.1% due to promotions and foreign currency effects
  • Operating income at $21m, net income at $9m
  • Inventory up 38% to $1.3bn
  • No outlook changes for FY24, revenue expected to be flat to slightly up

Under Armour’s first-quarter revenues fell 2% to $1.3 billion, despite a 12% growth in its international business to $485 million. The decline was driven by a 9% drop in North America sales to $827 million. EMEA revenue increased 10%, Asia-Pacific by 14%, and Latin America by 13%. Direct-to-consumer revenue rose 4% to $544 million, with ecommerce up 6% representing 40% of the total. However, clothing revenue dropped 5% to $825 million, while footwear increased 5% to $364 million and accessories grew 1% to $98 million. Gross margins fell to 46.1% due to higher promotions and adverse foreign currency effects. Operating income was $21 million, net income $9 million with inventory up 38% at $1.3 billion. No outlook changes for FY24; revenue expected flat to slightly up. CEO Stephanie Linnartz remains confident in long-term growth and profitability.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Under Armour’s financial performance in Q1, including revenue breakdown by region, product category, and gross margins. It also includes a statement from the CEO expressing confidence in the company’s future growth potential.
Noise Level: 3
Noise Justification: The article provides relevant information about Under Armour’s financial performance in Q1, including revenue breakdown by region, product category, and gross margins. It also includes a statement from the CEO expressing confidence in the company’s future growth potential. However, it lacks in-depth analysis or exploration of possible reasons behind the revenue decline and does not offer significant insights beyond reporting the numbers.
Financial Relevance: Yes
Financial Markets Impacted: Under Armour’s stock price may be impacted by these financial results, affecting investors and shareholders.
Financial Rating Justification: The article discusses Under Armour’s financial performance in the first quarter of FY24, including revenue growth in international business, decreased revenue in North America, changes in gross margins, and operating income. This information is relevant to investors and may impact the company’s stock price.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk