Under Armour says 2017 result shows “tough decisions” were right
14/02/2018
It revealed full-year results on February 13 that show revenues of $5 billion, an increase of 3% year on year. Although its revenue from wholesale customers declined by 3% to contribute $3 billion to the total, its direct-to-consumer revenue was up 14% to $1.7 billion and in 2017 direct-to-consumer represented 35% of all of Under Armour’s revenue.
In a similar way, its revenue from North American sales declined by 5%, but its sales in international markets went up by 46% for the year. Revenues from Europe were up by 42%, while there was growth of 61% in Asia and of 28% in Latin America.
Apparel revenue increased by 2% to reach $3.3 billion and footwear brought in $1 billion, 3% more than in 2016. Accessories revenue increased by 10% to reach $446 million. The areas in which Under Armour saw a slide last year included outdoor, team sports, basketball and ‘youth’.
The brand’s expenses rose by 14% to $2.1 billion, however, and after taxes, restructuring and other charges, it recorded a net loss of $48 million.
Chief executive, Kevin Plank, said on announcing the results: “After years of rapid growth and building a globally recognised brand, the dynamic landscape of 2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company. A year into this journey, our fourth quarter and full-year results demonstrate that the tough decisions we’re making are generating the stability necessary to create a more consistent and predictable path to deliver long-term value to our shareholders.”
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