Under Armour, an American company that manufactures footwear, sports, and casual apparel, has reportedly met estimates for quarterly earnings post 2018 holiday season.
The 2018 holiday season, however, can be termed as’moderate’ for the company.
Under Armour’s US sales plunged 6 percent against the previous year to US $ 965 million during the fourth quarter. The company’s international retail business soared 28 percent to US $ 395 million, accounting for 28 percent of the company’s revenue.
Apparel retail business of the sports brand was up 2 percent. Footwear sales, however, dipped 4 percent owing to fewer shoes sold at discount stores during the holiday season. Also, accessories sales were down 2 percent.
Additionally, the company’s online markdowns during the holiday season were 10 to 20 percent lower versus a year earlier.
Further, Under Armour’s full-year sales increased by 4.1 percent to US $ 5.2 billion.
North America sales, however, fell 6 percent, as larger rival Nike continued to dominate. The company now forecasts mid-single-digit percentage decline in first quarter North America sales.
Overall company revenue rose by 1.5 percent to US $ 1.39 billion, surpassing estimates of US $ 1.38 billion.
It is important to add here that Under Armour mad efforts to control surplus inventories last year and was forced to delegate more items to discount stores, thus adding to cost and impacting margins.
And to meet the rising expensed, Under Armour shuttered non-performing stores, axed employees and slashed product sourcing outlay.
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