Under Armour Q2 FY20: revenue $708 mn; net loss $183 mn

05 Aug '20

2 min read

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Under Armour, a distributor of branded athletic performance apparel and footwear, reported 41 per cent revenue decline to $707.6 million in its second quarter (Q2) fiscal 2020 compared to revenues of $1,191.7 million in same period last year. Company incurred a net loss of $182.8 million compared to net income of $17.3 million in Q2 FY19.

“With the majority of our own stores and wholesale locations closed for most of the second quarter due to the Covid-19 pandemic, while we performed better than expected, we still experienced a significant decline in revenue across all markets,” Under Armour President and CEO Patrik Frisk, said in a press release.

Gross profit for the quarter were $349.1 million (Q2 FY19: $554.3 million). Selling, general and administrative expenses were down to $479.9 million ($565.8 million). Company’s loss from the operations were $169.6 million ($11.4 million).

Wholesale revenue decreased 58 per cent to $299 million and direct-to-consumer revenue were down 13 per cent to $368 million.

During the second quarter sales of apparel products fell 42.4 per cent to $425.8 million ($739.7 million). Footwear product sales plunged 34.8 per cent to $185.0 million ($284.0 million). While accessories sales dropped 47.2 per cent to $56.1 million ($106.2 million).

Sales in North America region during Q2 FY20 decreased 44.9 per cent to $449.7 million ($816.2 million). In EMEA (Europe, the Middle East and Africa) sales slipped 38.7 per cent to $89.1 million ($145.3 million). Asia-Pacific reported 20 per cent decline in sales to $123.2 million ($154.1 million). Latina America’s sales dropped 71.9 per cent to $11.1 million ($39.7 million).

“Now, with most of these doors reopened, we are encouraged by some of the momentum we've experienced in June and July. However, we remain appropriately cautious with respect to the balance of 2020 due to continued uncertainty related to consumer shopping dynamics, the potential for a highly promotional environment and proactive decisions to reduce inventory purchases to be more aligned with anticipated demand related to ongoing Covid-19 impacts,” Frisk said.

Fibre2Fashion News Desk (JL)

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