United States Of America : Under Armour revenue up 5% to $1.4 billion in Q4

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Under Armour revenue up 5% to $1.4 billion in Q4

19
Feb '18

Courtesy: Under Armour

For the fourth quarter of fiscal 2017, the revenue of Under Armour, a leading innovator, marketer, and distributor of branded performance athletic apparel, footwear, and accessories, increased 5 per cent to $1.4 billion, (up 4 per cent currency neutral) For full year of 2017, the company's revenue was up 3 per cent to a total of $5.0 billion.

The company's gross margin declined to 43.2 per cent for the fourth quarter of 2017, as benefits from changes in foreign currency rates and product costs were more than offset by pricing and other inventory management initiatives, and channel mix. Adjusted gross margin, which excludes a $1 million impact from restructuring efforts, was 43.3 per cent.

For fiscal 2017, gross margin declined to 45.0 per cent as inventory management initiatives more than offset favourable channel mix. Adjusted gross margin, which excludes a $5 million impact from restructuring efforts, was 45.1 per cent.

Selling, General and administrative expenses increased 40.7 per cent to $591 million, or 43.3 per cent of revenue, primarily due to third to fourth quarter timing shifts in marketing execution and lower incentive compensation in the prior period, as well as continued investments in the direct-to-consumer, footwear and international businesses. For 2017, selling, general, and administrative expenses was up 14 per cent to $2.1 billion, representing 41.9 per cent of revenue.

"After years of rapid growth and building a globally recognised brand, the dynamic landscape of 2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company," said Under Armour chairman and CEO Kevin Plank. "A year into this journey, our fourth quarter and full year results demonstrate that the tough decisions we're making are generating the stability necessary to create a more consistent and predictable path to deliver long-term value to our shareholders."

For 2018, the company's net revenue is expected to be up at a low single-digit percentage rate reflecting a mid-single-digit decline in North America and international growth of greater than 25 per cent. Gross margin is expected to increase to 45.5 per cent due to benefits from lower planned promotional activity, product costs, channel mix and changes in foreign currency. (RR)

Fibre2Fashion News Desk – India

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