American firm Under Armour's revenue at $5.7 bn in FY24

Wholesale revenue saw a decrease of 7 per cent, totalling $3.2 billion. In contrast, direct-to-consumer revenue grew by 3 per cent to $2.3 billion, driven by a 5 per cent increase in owned and operated store revenue and a 1 per cent rise in e-commerce revenue, which accounted for 41 per cent of the total direct-to-consumer business for the year, the company said in a media release.

Breaking down the performance by product category, apparel revenue decreased by 2 per cent to $3.8 billion, footwear revenue fell by 5 per cent to $1.4 billion, and accessories revenue declined by 1 per cent to $406 million. Despite these declines, the company managed to increase its gross margin by 130 basis points to 46.1 per cent. Selling, general, and administrative expenses rose by 1 per cent to $2.4 billion.

Operating income for the year was $230 million, but excluding the company's litigation reserve expense, adjusted operating income was $310 million. Net income was reported at $232 million, with an adjusted net income of $245 million. Diluted earnings per share were $0.52, while adjusted diluted earnings per share were slightly higher at $0.54.

In the fourth quarter of fiscal 2024 (Q4 FY24), revenue fell by 5 per cent to $1.3 billion, maintaining the same decline on a currency-neutral basis. North America revenue decreased by 10 per cent to $772 million, while international revenue increased by 7 per cent to $561 million, or 6 per cent currency neutral. Within the international segment for the quarter, revenue grew by 10 per cent in EMEA, 1 per cent in Asia-Pacific, and 20 per cent in Latin America.

Wholesale revenue in Q4 FY24 decreased by 7 per cent to $850 million, while direct-to-consumer revenue remained flat at $455 million. Notably, owned and operated store revenue increased by 7 per cent, whereas e-commerce revenue decreased by 8 per cent, representing 43 per cent of the total direct-to-consumer business for the quarter.

In terms of product categories for Q4 FY24, apparel revenue decreased by 1 per cent to $877 million, footwear revenue declined by 11 per cent to $338 million, and accessories revenue dropped by 7 per cent to $89 million. However, the gross margin for the quarter increased by 170 basis points to 45.0 per cent. Selling, general, and administrative expenses rose by 5 per cent to $603 million, the release added.

The company reported an operating loss of $4 million for Q4 FY24, but adjusted operating income was $54 million. Net income for the quarter was $7 million, with an adjusted net income of $49 million. Diluted earnings per share were $0.02, while adjusted diluted earnings per share were $0.11. Additionally, inventory levels were down 19 per cent to $958 million.

"Amid a challenging retail environment in fiscal 2024 that included high inventories and a consistent drumbeat of promotions—we demonstrated disciplined expense control and delivered results that were aligned with our previous outlook," said Under Armour president and CEO Kevin Plank. "We also maintained a strong balance sheet, closing the year with a solid cash position and healthy inventory levels."

Fibre2Fashion News Desk (DP)