Home / Knowledge / News / Apparel/Garments / Q2FY18 revenue of Under Armour up 8% to $1.2 billion

Q2FY18 revenue of Under Armour up 8% to $1.2 billion

28
Jul '18
Courtesy: Under Armour
Courtesy: Under Armour
The revenue of Under Armour in the second quarter of fiscal 2018 has grown 8 per cent to $1.2 billion (up 7 per cent currency neutral). Apparel revenue rose 10 per cent to $747 million, driven by strength in training and running. Footwear revenue was up 15 per cent to $271 million with strength in running and team sports while accessories revenue lowered.

For the reported period, revenue from wholesale customers increased 9 per cent to $710 million and direct-to-consumer revenue climbed 7 per cent to $414 million. The direct-to-consumer business represented 35 per cent of global revenue in the quarter.

The selling, general and administrative expenses elevated 10 per cent to $553 million, or 47.0 per cent of revenue driven by continued investments in our direct-to-consumer, footwear, and international businesses, along with a reserve related to a commercial dispute.

"Through the first half of 2018, we are making progress toward our transformation of running a more operationally excellent company while amplifying the power of the Under Armour brand," said Under Armour chairman and CEO Kevin Plank. "The ongoing improvements in our structure, systems and go-to-market process across our global business better position us to drive a more consistent, predictable path to deliver for our consumers, customers and shareholders over the long-term."

On February 13, the company announced a 2018 restructuring plan, which detailed expectations to incur total estimated pre-tax restructuring and related charges of approximately $110 million to $130 million. After further review, the company has identified approximately $80 million of additional restructuring initiatives and now expects to incur approximately $190 million to $210 million of pre-tax restructuring and related charges in 2018.

For fiscal 2018, net revenue is expected to increase approximately 3 per cent to 4 per cent reflecting a low to mid-single-digit decline in North America and international growth of greater than 25 per cent. From a product perspective, apparel is expected to grow at a mid-single digit rate, footwear at a low-single digit rate, and accessories is expected to decline at a low-single digit rate.

Gross margin is likely to be flat to down slightly versus the prior year rate of 45.0 per cent. Adjusted gross margin is projected to improve slightly compared to 2017 as benefits from product costs and lower planned promotional activity are offset by increased inventory management actions.

"As we work through our multi-year transformation, we continue to proactively attack underperforming areas of our business including our SG&A cost structure and inventory. All of this will help create a better and stronger Under Armour through even greater operational efficiencies. We are unwavering in building our global brand and confident we're on the right track." Plank concluded. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: PR Newswire/Hoang Trieu

Apparel/Garments | On 14th Jul 2020

Dony Garment makes protective gear main production line

Dony Garment, a Vietnamese garment production company, has made...

Pic: Bodygram

Retail | On 14th Jul 2020

Transcosmos signs agreement with Bodygram, Japan

Transcosmos, headquartered in Japan, has signed a partnership...

Pic: IWTO

Textiles | On 14th Jul 2020

How clothes are used determines sustainability: AWI

Sustainability of clothing greatly depends on the number of times it...

Interviews View All

Cindy McNaull, Cordura

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Ajay Ghariwala, Luthra Group

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Mohammad Mamun Ar Rashid, UL VS Bangladesh Ltd

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Roz Guarnori,

Roz Guarnori

FESPA Global Print Expo 2019, to be held in Munich from May 14-17, is...

Devendra Gupta,

Devendra Gupta

Reforce, a start-up based in Gurgaon, aims to revolutionise the fitness...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Larry L Kinn, Suominen Corporation

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search