The US-based footwear, sports, and casual apparel brand announced financial results for the first quarter ended on the 31st of March. Period was marked by 2% growth in revenue
“Our first quarter results demonstrate our unwavering commitment to protecting and growing our premium performance athletic brand through a disciplined go-to-market process that delivers innovative products and experiences to make athletes better”, commented Under Armour Chairman and CEO Kevin Plank, adding: “As we execute against our long-term plan, Under Armour will emerge from 2019 and our ‘Protect This House’ chapter as an even stronger brand and company.”
First Quarter Review
During the first three months of the current year, Under Armour’s revenue was up by 2% totalling 1.2 billion US dollars (up by 3% currency neutral). Wholesale revenue increased by 5% to 818 million US dollars and direct-to-consumer revenue was down by 6% to 331 million US dollars, representing 27% of total revenue.
North America revenue decreased by 3% to 843 million US dollars and the international business increased by 12% to 328 million US dollars (up by 17% currency neutral), representing 27% of total revenue. Within the international business, revenue was up by 3% in EMEA (up by 9% currency neutral), up 25% in Asia-Pacific (up by 30% currency neutral) and up by 6% in Latin America (up by 10% currency neutral).
Apparel revenue increased by 1% to 775 million US dollars. Footwear revenue increased by 8% to 293 million US dollars primarily driven by strength in our run category. Accessories revenue decreased by 11% to 82 million US dollars, primarily driven by planned lower sales of backpacks and bags related to a strategic relaunch of key product.
In the first quarter of the year, operating income totalled 35 million US dollars and net income reached 22 million US dollars or 0.05 US dollars earnings per share.
Revenue is expected to be up by approximately 3% to 4% reflecting relatively flat results for North America and a low double-digit percentage rate increase in the international business. Operating income is now expected to reach 220 million US dollars to 230 million US dollars versus the previously expected range of 210 million US dollars to 230 million US dollars. Earnings per share is now expected to be between 0.33 US dollars to 0.34 US dollars versus the previously expected range of 0.31 US dollars to 0.33 US dollars.
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