Sportswear Giant Under Armour Struggles with $300m Loss and Revenue Drop

  • Under Armour reports $300 million operating loss for Q2 2024
  • Revenue declines across all regions and categories
  • North America revenue down 14%, international revenue down 2%
  • Wholesale revenue drops 8%, direct-to-consumer revenue decreases 12%
  • Footwear revenue falls 15%, apparel revenue down 8%
  • Accessories revenue declines 5%
  • Restructuring plan announced in May 2024 with $70-$90 million cost range
  • CEO Kevin Plank expresses confidence in brand’s future
  • Stronger product organization and brand leadership expected to improve design and innovation

Under Armour has reported a $300 million operating loss for Q2 2024, as its sales dropped across all regions and categories. The sportswear giant’s revenue declined by 10% to $1.2 billion. In North America, revenue decreased by 14% to $709 million, while international revenue fell 2% to $473 million. Under Armour announced a restructuring plan in May 2024 with an estimated cost range of $70-$90 million. CEO Kevin Plank remains confident in the brand’s ability to improve design and innovation through a stronger product organization and enhanced brand leadership.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Under Armour’s financial performance, including specific revenue figures for different regions, categories, and the company’s restructuring plan. It also includes a quote from the CEO that supports the overall message.
Noise Level: 3
Noise Justification: The article provides relevant information about Under Armour’s financial performance and the CEO’s perspective on the company’s restructuring plan and future expectations. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
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 operating loss and revenue decline across various regions and categories. This information can affect the company’s stock price and investor sentiment, thus impacting financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: Under Armour reported an operating loss and revenue decline, but no extreme event occurred in the last 48 hours.

Reported publicly: www.retailsector.co.uk