- Prachi Singh |
Under Armour said revenue was up 7 percent to 1.1 billion dollars in a first quarter, driven by a 4 percent increase in wholesale revenue to 773 million dollars and a 13 percent increase in direct-to-consumer revenue to 302 million dollars. Gross margin was down 70 basis points to 45.2 percent. While operating income was 8 million dollars, there was a net loss of 2 million dollars and a 0.01 dollar loss in diluted earnings per share.
"Our first quarter results were in line with our expectations and we're off to a solid start in 2017," said Under Armour Chairman and CEO Kevin Plank in a media release, adding, "By proactively managing our growth to deliver superior innovative product, continuing to strengthen our connection with consumers and increasing our focus on operational excellence - we have great confidence in our ability to drive toward our full year targets."
First quarter financial review
The company said, North American revenue declined 1 percent as new distribution was more than offset by the absence of business lost to bankruptcies in 2016. International revenue, which is comprised of our EMEA, Asia-Pacific, and Latin America regions, represented 20 percent of total revenue in the quarter, and was up 52 percent or 57 percent currency neutral.
By region, revenue was up 55 percent in EMEA, 60 percent in Asia-Pacific and 30 percent in Latin America. Apparel revenue increased 7 percent to 715 million dollars including strength in training, golf, and team sports. Footwear revenue grew 2 percent to 270 million dollars, against last year's same period which was up 64 percent due to significant strength in basketball sales and the timing of liquidations. Accessories revenue increased 12 percent to 89 million dollars with strength in men's training, running, youth, and global football.
Projects net revenue growth of 11 to 12 percent for FY17
The company said, there are no changes to the company's full year 2017 outlook provided on January 31, 2017. Net revenues are expected to grow 11 to 12 percent to reach nearly 5.4 billion dollars, up 12 to 13 percent currency neutral; gross margin expected to be slightly down compared to 46.4 percent in 2016 with benefits in product costs being offset by changes in foreign currency and shifts in overall sales mix, as the footwear and international businesses continue to outpace the growth of the higher margin apparel and North American businesses.
Picture:Under Armour website