Under Armour revenue up 2% in Q1FY19

North America revenue decreased 3 per cent to $843 million while the international business increased 12 per cent to $328 million (up 17 per cent currency neutral), representing 27 per cent of total revenue. Within the international business, revenue was up 3 per cent in EMEA (up 9 per cent currency neutral), up 25 per cent in Asia-Pacific (up 30 per cent currency neutral), and up 6 per cent in Latin America (up 10 per cent currency neutral).

Apparel revenue increased 1 per cent to $775 million. Footwear revenue increased 8 per cent to $293 million primarily driven by strength in our run category. Accessories revenue decreased 11 per cent to $82 million primarily driven by planned lower sales of backpacks and bags related to a strategic re-launch of key product.

“Our first quarter results demonstrate our unwavering commitment to protecting and growing our premium performance athletic brand through a disciplined go-to-market process that delivers innovative products and experiences to make athletes better,” said Under Armour chairman and CEO Kevin Plank. “As we execute against our long-term plan, Under Armour will emerge from 2019 and our ‘Protect This House’ chapter as an even stronger brand and company.”

In fiscal 2019, revenue is expected to be up approximately 3 to 4 per cent reflecting relatively flat results for North America and a low double-digit percentage rate increase in the international business. The gross margin is now likely to increase approximately 110 to 130 basis points compared to 2018. Excluding restructuring charges from the comparable prior period, the company now expects an increase of approximately 70 to 90 basis points compared to the 2018 adjusted gross margin due to ongoing supply chain initiatives and channel mix benefits. This compared to a previously expected range of 60 to 80 basis points in improvement compared to the 2018 adjusted gross margin. (RR)

Fibre2Fashion News Desk – India