Wholesale Revenue Down 7%, Direct-to-Consumer Up 3%
- Under Armour’s revenues dropped 3% to $5.7bn in FY24
- Wholesale revenue decreased 7% to $3.2bn, while direct-to-consumer revenue increased 3%
- North America revenue fell 8%, international revenue rose 8%
- EMEA, Asia-Pacific, and Latin America saw revenue growth of 9%, 6%, and 8% respectively
- Apparel and footwear revenues declined by 2% and 5% respectively
- Accessories revenue dropped 1% to $406m
- Operating income was $230m, adjusted operating income $310m
- Restructuring plan approved with estimated charges of $70-90m
- Revenue expected to decline in low double digits for 2025
- North America revenue expected to drop by 15-17%
- International revenue expected to fall at a low single-digit rate
- Operating income forecasted at $50-$70m, adjusted operating income $130-$150m
Under Armour has reported a 3% drop in revenues to $5.7bn for the financial year ended March 31, with North America revenue down 8% and international revenue up 8%. Wholesale revenue fell 7% to $3.2bn while direct-to-consumer revenue increased 3%. The company plans a restructuring plan with estimated charges of $70-$90m to improve its financial and operational efficiency. CEO Kevin Plank expects low double-digit revenue decline in 2025, including a 15-17% drop in North America and a low single-digit decline in international business.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Under Armour’s financial performance, including revenue breakdown by region, product category, and plans for restructuring. It also includes quotes from the CEO that support the company’s strategy and outlook for future growth.
Noise Level: 6
Noise Justification: The article provides relevant information about Under Armour’s financial performance and CEO Kevin Plank’s plans for restructuring and improving the company’s position. However, it contains some repetitive information and could benefit from more in-depth analysis or context on the factors affecting the industry and competition.
Financial Relevance: Yes
Financial Markets Impacted: Under Armour’s stock price and related sports apparel industry stocks
Financial Rating Justification: The article discusses Under Armour’s financial performance, revenue changes in different regions, and the company’s restructuring plan which will impact its future revenue and operating income. This directly pertains to financial topics and can affect the financial markets as it involves a significant company in the sports apparel industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article, but the company is facing financial challenges and has approved a restructuring plan to improve its performance.
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