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Under Armour with another year of growth

Feb 14, 2019 United States
Under Armour with another year of growth
US-based Under Armour announced revenue growing by 2% in the last quarter, with overall increase of sales for the whole year reaching 4%. Revenue in the financial year totalled 5.2 billion US dollars
“Our 2018 results demonstrate significant progress against our multi-year transformation toward becoming an even stronger brand and more operationally excellent company”, commented Under Armour Chairman and CEO Kevin Plank, adding: “As we look ahead to 2019, our accelerated innovation agenda, disciplined go-to-market process and powerful consumer-centric approach gives us increasingly greater confidence in our ability to deliver for Under Armour athletes, customers and shareholders.”

Fourth Quarter Review

In the last quarter of the financial year, Under Armour revenue was up by 2% totalling 1.4 billion US dollars (up by 3% currency neutral). Wholesale revenue increased by 1% to 737 million US dollars and direct-to-consumer revenue was flat at 577 million US dollars, representing 41% of total revenue. North America revenue decreased by 6% to 965 million US dollars and our international business increased by 24% to 395 million US dollars (up by 28% currency neutral), representing 28% of total revenue. Within the international business, revenue was up by 32% in EMEA (up by 35% currency neutral), up by 35% in Asia-Pacific (up by 39% currency neutral), and down by 15% in Latin America (down by 11% currency neutral). Apparel revenue increased by 2% reaching 970 million US dollars. Footwear revenue decreased by 4% to 235 million US dollars primarily driven by lower sales to the off-price channel. Accessories revenue decreased by 2% to 108 million US dollars.  Net income totalled 4 million US dollars or 0.01 US dollars earnings per share.

Full Year Review

Revenue was up by 4% totalling 5.2 billion US dollars. Wholesale revenue increased by 3% to 3.1 billion US dollars and direct-to-consumer revenue was up by 4% to 1.8 billion US dollars, representing 35% of total revenue. North America revenue decreased by 2% to 3.7 billion US dollars and the international business increased by 23% to 1.3 billion US dollars (up by 22% currency neutral), representing 26% of total revenue. Within the international business, revenue was up 25 percent in EMEA (up 23 percent currency neutral), up by 29% in Asia-Pacific (up by 27% currency neutral), and up by 5% in Latin America (up by 8% currency neutral). Apparel revenue increased by 5% to 3.5 billion US dollars. Footwear revenue increased by 2% to 1.1 billion US dollars largely driven by growth in the run category. Accessories revenue was down by 5% to 422 million US dollars due to softer demand and continued actions to optimize our inventory and distribution. Net loss was 46 million US dollars or 0.10 US dollars loss per share. 

2019 Outlook

There are no changes to the company’s 2019 outlook, which was provided at its investor day on the 12th of December 2018. Revenue is expected to increase approximately by 3% to 4% reflecting relatively flat results for North America and a low double-digit percentage rate increase in the international business.  

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