Under Armor closes mid-year lower. The American fashion and sports equipment company ended the first six months of the year (period ended September 30) with a slight increase in sales, reducing its bottom line and tightening its forecast for the end of the year .
Specific, the company increased its sales by only 0.9% during the period, up to $2,922 million. In the second quarter of the year alone, Under Armor increased its revenue by 1.8%.
The company’s gross profit during the period was $1,344 milliondown 7.7% from the first half of fiscal 2021, when net profit contracted 45.2% to $94.6 million.
Under Armor updated its guidance for the end of the year, in which it now expects revenue growth in the low single digits, compared to growth forecasts of between 5% and 7 % by the end of the year. The company lowered its outlook due to “a more challenging retail environment and additional negative impacts from foreign currency fluctuations.” Additionally, the company expects to reduce its gross margin by 425 basis points during the period.
Under Armor expects low-single-digit sales growth for the year
“The results are in line with our expectations,” said Colin Browne, interim group chairman and chief executive.. “While we expect the immediate macro environment to remain uncertain, we are taking a balanced approach to easing near-term pressures while continuing to focus on the long-term strength of our brand.”
By product category, Under Armor fashion sales in the first six months of the year fell 1.3%, while footwear sales increased 7.6%. The turnover of the accessories division is also down by 12.6%.
through the channels, Under Armor revenue at multi-brand outlets increased 3.7% in the first six months of the yearwhile the turnover achieved in its own stores fell by 5.7%.
In its home market of North America, Under Armor revenue fell 1% in the first half, while in Asia Pacific the decline was 0.5%. In Europe and Latin America, on the other hand, the company’s sales increased by 4.3% and 4.6% respectively.
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