In Q3 FY23, accessories revenue declined by 2 per cent to $105 million, compared to the corresponding period of the previous fiscal, Under Armour said in a press release.

The company reported a decline in gross margin by 650 basis points to 44.2 per cent in Q3 FY23 compared to the prior year, driven primarily by higher promotions, mix impacts, and changes in foreign currency.

Wholesale revenue in Q3 FY23 increased by 7 per cent YoY to $820 million, while direct-to-consumer revenue decreased by 1 per cent YoY to $715 million, largely due to a decline in owned and operated store revenue.

The company’s revenue in North America was down 2 per cent in Q3 FY23 compared to the prior year, reaching $1 billion, while international revenue increased by 14 per cent to $527 million, with currency-neutral growth of 24 per cent. In particular, revenue increased by 32 per cent in the Europe, Middle East, and Africa (EMEA) region, 45 per cent in Latin America, and decreased by 9 per cent in Asia-Pacific.

Selling, general, and administrative expenses decreased by 11 per cent to $604 million, while operating income was $95 million. Net income was $122 million, with adjusted net income of $76 million. Diluted earnings per share were $0.27, and adjusted diluted earnings per share were $0.16.

Under Armour's outlook for the rest of 2023 remains unchanged, with revenue growth expected to be a low single-digit percentage increase, gross margin expected to decline at the higher end of the 375 to 425 basis point range, and operating income expected to reach $270 to $290 million. Diluted earnings per share are expected to be $0.71 to $0.75, with adjusted diluted earnings per share expected to be $0.52 to $0.56.

Fibre2Fashion News Desk (DP)