US' Under Armour reports 3% rise in revenue for Q1 FY22

The brand’s growth was influenced by rise in the wholesale and direct-to-consumer revenues. The wholesale revenue increased 4 per cent to $829 million and direct-to-consumer revenue increased 1 per cent to $441 million, driven by 2 per cent growth in e-commerce, which represented 45 per cent of the total direct-to-consumer business during QFY22. Owned and operated store revenue growth was flat during the quarter, the company said in a press release.

North America revenue increased 4 per cent to $841 million and international revenue increased 1 per cent to $456 million. Within the international business, revenue increased 18 per cent in EMEA, decreased 14 per cent in Asia-Pacific, and decreased 6 per cent in Latin America.

The brand's pparel revenue increased 8 per cent to $877 million, footwear revenue decreased 4 per cent to $297 million, while the accessories revenue decreased 18 per cent to $97 million.

"Having successfully executed a multi-year transformation and after delivering a record year in 2021, we are continuing to serve the needs of athletes amid an increasingly more uncertain marketplace." said Under Armour president and ceo, Patrik Frisk.

He further added, "As global supply challenges and emergent covid-19 impacts in China eventually normalize, we are confident that the strength of the brand coupled with our powerful growth strategy positions us well to deliver sustainable, profitable returns to shareholders over the long-term."

Due to Under Armour's fiscal change, announced in February this year, the comparable baseline period is April 1, 2021, through March 31, 2022. Based on current visibility, including ongoing supply chain challenges, covid-19 uncertainty, and inflationary trends, the company expects revenue to increase 5 to 7 per cent, reflecting a mid-single-digit growth rate in North America and a low-teens growth rate in the international business.

Fibre2Fashion News Desk (HO)