American sportswear company Under Armour's revenue down 2% in Q1 FY24

The company witnessed a 12 per cent increase in international revenue, including gains of 14 per cent in Asia-Pacific (up 21 per cent currency neutral) and 13 per cent in Latin America (up 5 per cent currency neutral). North American revenue, however, faced a 9 per cent drop to $827 million.

E-commerce revenue within the direct-to-consumer business increased 6 per cent, while owned and operated store revenue saw a 3 per cent rise, the company said in a media release.

The first quarter review of fiscal 2024 further detailed the performance of various segments within Under Armour, Inc. Wholesale revenue decreased 6 per cent to $742 million, and apparel revenue was down 5 per cent to $825 million. In contrast, footwear revenue saw a rise of 5 per cent to $364 million, and accessories revenue showed a minor increase of 1 per cent to $98 million.

The gross margin declined 60 basis points to 46.1 per cent, influenced by higher promotions and negative currency effects. However, this was partially offset by lower freight expenses in the supply chain.

Selling, general and administrative expenses decreased slightly by 1 per cent to $587 million. Operating income was at $21 million, net income at $9 million, and diluted earnings per share were marked at $0.02.

Under Armour's inventory surged 38 per cent to $1.3 billion, and cash and cash equivalents stood at $704 million at the end of the quarter. There were no borrowings outstanding under the company's $1.1 billion revolving credit facility, the release added.

CEO Stephanie Linnartz stated, "We're pleased with how we have navigated our start to fiscal 2024. As we continue executing against our Protect This House 3 strategic priorities, including our prioritisation of North America, we have taken several important steps. These steps include leadership changes, amplifying storytelling to drive global brand heat, and optimising our product engine to deliver elevated design and groundbreaking innovations that athletes covet. I am confident that we will achieve the improved growth and profitability this brand is capable of over the long run."

Fibre2Fashion News Desk (KD)