Challenges continue for Under Armour
Sportswear brand Under Armour has reported a 15% dip in full-year revenues to $4.5 billion, but says fourth quarter results were better than expected and that the company had shown ‘exceptional resilience’ in a highly challenging year.
Apparel revenue decreased 17% to $2.9 billion, footwear revenue declined 14% to $934 million but accessories revenue was relatively flat at $414 million for 2020.
Fourth-quarter revenue was down 3% to $1.4 billion.
Like many businesses, it saw a large growth in online sales (40% over the year) as physical stores closed due to the covd-19 pandemic.
It also went through a “comprehensive restructuring effort” - a $550 million to $600 million plan designed to “rebalance its cost base to improve profitability and cash flow”. In September 2020, it said it needed to lay off about 600 employees from its global workforce.
Under Armour CEO Patrik Frisk said: "Our global team was exceptionally resilient and disciplined amid a highly challenging year which included the COVID-19 pandemic and for Under Armour, a comprehensive restructuring effort including further operating model refinements.
"As we continue to navigate uncertainty around the pandemic, we remain focused on execution and the efforts necessary to stabilize our business further and improve our ability to deliver sustainable shareholder value over the long-term."
