Under Armour’s Q2 “exceeded expectations”
Under Armour has announced its financial results for the second quarter of fiscal 2024, ending 30 September 2023, revealing revenues remained flat at £1.3 billion ($1.6 billion).
Wholesale revenue decreased 1% to £767 million ($940 million) and direct-to-consumer revenue increased 3% to £486 billion ($596 million), thanks to a 2% increase in e-commerce revenue.
Apparel revenue increased 3% to £897.5 million ($1.1 billion). Footwear revenue was down 7% to £286 million ($351 million) and accessories revenue increased 3% to £96 million ($114 million).
Further financial results include:
- Gross margin increased 260 basis points to 48%, driven primarily by supply chain benefits related to lower freight expenses
- Operating income was £119 million ($146 million)
- Net Income was £89 million ($110 million)
- Diluted earnings per share was £0.19 ($0.24)
Under Armour President and CEO, Stephanie Linnartz, commented: "Our second quarter results, particularly profitability, exceeded our expectations. Consequently, we are maintaining our fiscal 2024 operating income and EPS outlook even as we lower our revenue expectations primarily in response to challenges in North America during the back half of the year."
"As we execute against our strategic priorities, we will continue to take a balanced approach to driving profitability in the near term while taking the necessary steps to invest in the talent, systems, and processes to drive the top-line growth that Under Armour is capable of over the long term."
Looking ahead, for the fiscal year 2024, revenue is expected to be down 2 to 4% versus the previous expectation of "flat to up slightly".
Gross margin is expected to be up 100 to 125 basis points versus the previous expectation of up 25 to 75 basis points. Operating income remains unchanged from the previous expectation of £252 million to £269 million ($310 million to $330 million). Diluted earnings per share also remain unchanged from the expectation of between £0.38 and £0.41 ($0.47 and $0.51).
