For the third quarter (Q3) Under Armour recorded a net profit of $114m compared with $121.6m a year earlier, impacted by weaker sales.
Operating income came in at $69.5m compared with $94.7m a year earlier as net revenues slid to $1.49bn from $1.58bn for the same period a year earlier.
Revenues fell on weaker wholesale sales and weakness in the North America market. Under Armour saw increases in its international business, Asia Pacific and Latin American units.
Apparel revenue decreased 6% to $1bn. Footwear revenue was down 7% to $331m. Accessories revenue was flat at $105m.
"Despite a mixed retail environment during the holiday season, our third quarter revenue results were in line with our expectations; we were able to deliver better than anticipated profitability and remain on track to achieve our full-year outlook," said Under Armour president and CEO Stephanie Linnartz. "As we close out fiscal 2024 and our strengthened leadership team begins to come up to speed in the quarters ahead – we are working to reset Under Armour toward a path of improved revenue growth and enhanced value creation in the future."
Outlook overview
- Revenue is expected to be down 3% to 4%, tightening the previous expectation of a 2% to 4% decline.
- Operating income is expected to reach $287m-$297m. Excluding the company's litigation reserve, adjusted operating income is expected to be $310m to $320m.
- Diluted earnings per share is expected to be $0.57 to $0.59.
At the end of last month, Under Armour announced a partnership with speciality materials and chemicals company Celanese Corporation to introduce a sustainable alternative fibre to spandex, designed for performance stretch fabrics.
What Under Armour and Celanese Corporation claim to set Neolast apart is its commitment to sustainability, addressing concerns related to elastane (commonly known as spandex) recyclability.
