10 Aug Under Armour Limits Fiscal Q1 Downside with Strong International Growth
Under Armour, Inc.’s total net revenue was down 2.4 percent (-1.3 percent currency-neutral) year-over-year to $1.32 billion in the fiscal first quarter ended June 30. Wholesale revenues declined 6.3 percent to $742.0 million in the quarter, while direct-to-consumer sales increased 4.5 percent to $544.2 million in the period.
- Total Apparel revenues declined 5,0 percent to $824.7 million;
- Total Footwear sales grew 4.7 percent to $363.7 million;
- Total Accessories sales increased 1.1 percent to $97.9 million; and
- Total Licensing revenues declined 10.9 percent to $25.1 million.
Regionally, UA’s North America business fell 9.1 percent (-8.4 percent currency-neutral) to $826.9 million in the fiscal first quarter, while all other regions posted double-digit growth.
Gross margin declined 60 basis points to 46.1 percent of sales, driven primarily by higher promotions and adverse effects from changes in foreign currency and partially offset by supply chain benefits related to lower freight expenses.
SG&A expenses decreased 1 percent to $587 million for the period.
The resulting operating income was $21 million in the quarter, compared to $34 million in the prior-year quarter.
Net income was $8.5 million, or 2 cents per diluted share, in fiscal Q1, compared to $7.7 million, or 2 cents per share, in Q1 last year.