Under Armour Q1 revenues drop, outlook maintained

First quarter revenue at Under Armour was down 2 percent or down 1 percent currency neutral to 1.3 billion dollars.

The company’s gross margin declined 60 basis points to 46.1 percent, operating income was 21 million dollars, net income was 9 million dollars and diluted earnings per share were 2 cents.

"We're pleased with how we have navigated our start to fiscal 2024," said Under Armour president and CEO Stephanie Linnartz in a release, adding, "Our international and direct-to-consumer businesses, both of which realised solid growth in the quarter, continue to deliver aside a challenging consumer retail environment in North America. Based on this performance, we are maintaining our outlook for fiscal 2024."

Review of Under Armour’s Q1 performance

The company said, wholesale revenue for the quarter decreased 6 percent to 742 million dollars and direct-to-consumer revenue increased 4 percent to 544 million dollars due to a 6 percent increase in ecommerce revenue, which represented 40 percent of the total direct-to-consumer business in the quarter, and a 3 percent increase in the company-owned and operated store revenue.

North America revenue decreased 9 percent to 827 million dollars and international revenue increased 12 percent or 15 percent currency neutral to 485 million dollars.

Within the international business, revenue increased 10 percent or 11 percent currency neutral in EMEA, 14 or 21 percent percent in Asia-Pacific and 13 percent or 5 percent in Latin America.

Apparel revenue decreased 5 percent to 825 million dollars, footwear revenue increased 5 percent to 364 million dollars and accessories revenue increased 1 percent to 98 million dollars.

Under Armour maintains fiscal 2024 outlook

The company has maintained its outlook for the year ahead, which was provided on May 9, 2023. The company added that revenue is expected to be flat to up slightly.

Gross margin is expected to be up 25 to 75 basis points compared to the prior year's rate of 44.9 percent, operating income is expected to reach 310 million dollars to 330 million dollars and diluted earnings per share are expected to be between 47 cents and 51 cents.