Under Armour reports drop in North American sales, but exceeds earnings expectations

From CNBC: 2024-08-08 07:53:54

Under Armour saw a 14% drop in quarterly sales in North America and revised their profit guidance after settling a securities lawsuit for $434 million. However, the company exceeded Wall Street’s expectations for earnings per share and revenue. They reported a loss of $305.4 million in the first quarter, with sales falling to $1.18 billion.

The restructuring plan at Under Armour includes layoffs, reduced promotions, and a focus on becoming a premium brand like Nike. Former Marriott executive Stephanie Linnartz was replaced as CEO by founder Kevin Plank. Plank stated that the company is making progress, despite sales declining across its business during the quarter.

Sales in North America, Under Armour’s largest market, fell 14% to $709 million, but still beat analyst expectations. Wholesale revenue dropped 8% while direct-to-consumer sales declined 12%. Apparel sales fell 8%, footwear sales dropped 15%, and accessories revenue slid 5%.

Under Armour acquired sustainable fashion brand Unless Collective and appointed former Adidas-exec Eric Liedtke as EVP of brand strategy. Liedtke will lead initiatives to accelerate growth for Under Armour. Unless Collective focuses on plant-based, zero-plastic regenerative fashion to replace traditional synthetic materials in apparel and footwear.



Read more at CNBC:: Under Armour (UAA) earnings Q1 2025