Under Armour Q2 revenue dips as brand realignment continues

Under Armour says its revenue declined 11 per cent in the second quarter to September 30, to US$1.4 billion.

Despite the drop, the company raised its full-year profitability outlook, highlighting progress in repositioning itself as a premium brand.

“Our strategy to reconstitute the Under Armour brand and establish a more premium position in the marketplace is gaining traction,” said CEO Kevin Plank.

In North America, revenue decreased 13 per cent, while international sales were down 6 per cent.

Wholesale revenue fell 12 per cent, and direct-to-consumer sales decreased by 8 per cent, driven by a planned reduction in e-commerce promotions. 

By product, apparel sales dropped by 12 per cent, footwear by 11 per cent, and accessories rose 2 per cent.

However, the company’s gross margin improved by 200 basis points to 49.8 per cent due to lower costs and reduced discounting. Operating expenses decreased 15 per cent, and net income for the quarter was $170 million. 

In May, Under Armour launched a restructuring plan to increase efficiency. Additional actions were announced in September, including closing a California distribution centre, taking restructuring costs to an estimated $140 million to $160 million, with remaining charges expected through fiscal 2026.

“With better-than-expected results, we are pleased to raise our full-year profitability outlook while increasing marketing investments to amplify our brand,” Plank added.

“We are a fundamentally stronger business today with increasingly better execution across key dimensions, including marketplace discipline through improved product, storytelling, and sales leadership.”

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