US apparel firm Under Armour's revenue grows 3% to $5.9 bn in FY23

Under Armour's North America revenue decreased by 1 per cent to $3.8 billion in FY23, while its international revenue increased by 8 per cent to $2 billion. Within the international business, revenue increased by 13 per cent in Europe, Middle East, and Africa (EMEA), 3 per cent in Asia-Pacific, and 11 per cent in Latin America.

In FY23, the company’s apparel revenue decreased by 1 per cent to $3.9 billion, while footwear revenue increased by 16 per cent to $1.5 billion. Accessories revenue declined by 7 per cent to $409 million, Under Armour said in a press release.

The brand's gross margin declined by 470 basis points to 44.9 per cent in FY23 compared to the previous year, and selling, general, and administrative expenses decreased by 2 per cent to $2.4 billion. Operating income was $284 million, while net income was $387 million. Diluted earnings per share were $0.84, and adjusted diluted earnings per share were $0.58.

In the fourth quarter of FY23, Under Armour's revenue increased by 8 per cent year-on-year (YoY) to $1.4 billion. Wholesale revenue increased by 10 per cent YoY to $909 million, and direct-to-consumer revenue increased by 3 per cent YoY to $454 million, driven by a 6 per cent increase in e-commerce revenue, which represented 46 per cent of the total direct-to-consumer business for the quarter, and a 1 per cent increase in owned and operated store revenue.

North America revenue increased by 3 per cent YoY to $862 million in Q4 FY23, while international revenue increased by 16 per cent YoY to $526 million. Within the international business, revenue increased by 14 per cent YoY in EMEA, 24 per cent YoY in Asia-Pacific, and decreased by 8 per cent YoY in Latin America.

Apparel revenue increased by 1 per cent YoY to $889 million in Q4 FY23, footwear revenue increased by 27 per cent YoY to $378 million, and accessories revenue declined by 1 per cent YoY to $96 million, the release added.

The brand's gross margin in Q4 FY23 declined by 310 basis points to 43.4 per cent compared to the previous year, and selling, general and administrative expenses decreased by 4 per cent YoY to $572 million. Operating income was $35 million, and net income was $171 million. Diluted earnings per share were $0.38, and adjusted diluted earnings per share were $0.18.

"I'm honoured to lead this iconic brand, and I'm pleased that Under Armour delivered fiscal 2023 revenue and earnings results that were in line with our previous outlook," said Under Armour president and CEO Stephanie Linnartz. "Fiscal 2024 will be a year of building for the brand. I am prioritising significantly amplifying global brand heat; delivering elevated design and products, with a focus on sportstyle, footwear, and women; and positioning us to drive better sales growth in the US."

Fibre2Fashion News Desk (DP)