American sportswear brand Under Armour has recorded a net income of $114.14m for the third quarter of the fiscal year 2024 (FY24), a drop from $121m in the same quarter of FY23.
The company's total revenue also saw a decline, dropping 6% to $1.48bn from $1.58bn in the same quarter of the previous year.
The brand's direct-to-consumer revenue, however, showed resilience with a 4% increase to $741m.
This growth was attributed to a 5% rise in owned and operated store revenue, while e-commerce revenue saw a smaller 2% increase.
North America faced a 12% revenue decrease to $915m, but international revenue painted a brighter picture with a 7% increase to $566m, even when adjusted for currency fluctuations.
Under Armour's gross margin for the quarter ending 31 December 2023 improved by 100 basis points to 45.2%, primarily due to supply chain efficiencies that reduced freight expenses.
Its diluted earnings per share (EPS) slightly decreased to $0.26 in Q3 FY24 from $0.27 a year previously.
The company's sales, general and administrative expenses remained consistent at $602m, inclusive of a $23m litigation reserve expense.
Under Armour has adjusted its full-year 2024 revenue expectations and now anticipates a 3% to 4% decline, a slight tightening from the previously forecasted 2% to 4% drop.
Projected diluted EPS is between $0.57 and $0.59, with gross margin expected to increase by between 120 and 130 basis points.
The company anticipates operating income to be between $287m and $297m.
Under Armour president and CEO Stephanie Linnartz stated: “Despite a mixed retail environment during the holiday season, our third quarter revenue results were in line with our expectations; we were able to deliver better-than-anticipated profitability and remain on track to achieve our full-year outlook.
“As we close out fiscal 2024 and our strengthened leadership team begins to come up to speed in the quarters ahead, we are working to reset Under Armour toward a path of improved revenue growth and enhanced value creation in the future."
