Operating income down 25%, apparel and footwear sales drop by 6% and 7% respectively
- Under Armour reports a 25% dip in operating income
- Revenue decreased by 6% to $1.5 billion (£1.2bn)
- Apparel and footwear revenue declined by 6% and 7% respectively
- Wholesale and North America revenues dropped by 13% and 12%
- Direct-to-consumer revenue increased by 4%
- EMEA and Asia-Pacific sales rose by 7% and 9% respectively
- Latin America sales up by 9%
- Adjusted operating income expected to be $310m-$320m
- Revenue decline expectation revised from 2%-4% to 3%-4%
Under Armour has reported a 25% dip in operating income to $70m (£55m) for the three months ending December 31, 2023. The company’s revenue declined by 6% to $1.5 billion (£1.2bn). Apparel and footwear sales dropped by 6% and 7% respectively, while wholesale and North America revenues fell by 13% and 12%. However, direct-to-consumer revenue increased by 4%, driven by a 5% rise in owned and operated store revenue and a 2% increase in ecommerce. EMEA and Asia-Pacific sales rose by 7% and 9%, while Latin America sales grew by 9%. The company expects adjusted operating income to be between $310m (£245.6m) and $320m (£253.6m), with revenue expected to decline by 3%-4%. CEO Stephanie Linnartz remains optimistic about the future, stating that they are on track to achieve their full-year outlook despite the challenges.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Under Armour’s financial performance, including specific numbers for operating income, revenue, and growth in different regions. It also includes a statement from the company’s president, Stephanie Linnartz, which adds credibility to the report.
Noise Level: 3
Noise Justification: The article provides relevant information about Under Armour’s financial performance and includes specific numbers for various categories such as operating income, revenue, and sales by region. It also quotes the CEO’s statement on the company’s outlook. However, it lacks in-depth analysis or discussion of long-term trends or possibilities, and does not explore consequences of decisions or hold powerful people accountable.
Financial Relevance: Yes
Financial Markets Impacted: Under Armour’s stock price may be impacted by these financial results.
Financial Rating Justification: The article discusses Under Armour’s financial performance, including a dip in operating income and revenue decline, which can affect the company’s stock price and investor sentiment.
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 this article.
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