Under Armor closes mid-year. The American fashion and sports equipment company ended the first six months of this year (the period ended September 30) with a slight increase in sales, a decrease in net income and a reduction in forecasts for the end of the year.
Specifically, the company increased its sales by only 0.9% in that period., up to 2.922 million dollars. In the second quarter of the year alone, Under Armor increased its revenue by 1.8%.
The gross result of the company in that period was 1,344 million dollars7.7% less than in the first six months of the financial year 2021, while net profit decreased by 45.2%, to 94.6 million dollars.
Under Armor has updated its year-end forecasts, in which it now expects revenue to grow in the low single digits, compared to forecasts of growth 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 changes.” In addition, the company expects its gross margin to decrease by 425 basis points in that period.
Under Armor expects its sales to grow in the low single digits this year
“The results are in line with our expectations,” said Colin Browne, the group’s interim chairman and chief executive.. “While we anticipate that the immediate macroeconomic environment will remain uncertain, we are taking a balanced approach to mitigating near-term pressures while continuing to focus on the long-term strength of our brand.”
By product category, Under Armour’s fashion sales in the first six months of this year fell 1.3%, while footwear sales rose 7.6%. Accessories department revenues were also down, by 12.6%.
by channels, Under Armour’s multibrand retail sales grew by 3.7% in the first six months of this yearwhile turnover through own stores fell by 5.7%.
In its home market, North America, Under Armour’s revenue fell 1% in the first half of the year, while in the Asia-Pacific region 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.