Menu
Finance

Under Armour Posts Slowest Sales Growth In Six Years During Q3, But Profit Up 28%

Under Armour this morning "reported its slowest quarterly sales growth in six years, hurt by slowing growth in North America, its biggest market," according to Kuruthukulangara & Ganesan of REUTERS. Research agency Conlumino retail analyst Carter Harrison said that although net sales in North America grew 15.6% in Q3, it was below the 20% growth mark the company "normally breaches." UA had flagged in July that Q3 sales "would slow, mainly because of the loss of retailer Sports Authority as a customer due to bankruptcy." UA's gross margins for Q3 fell to 47.5% from 48.8% , as it "had to resort to increased promotions to sell products that would usually have been sold at Sports Authority" (REUTERS, 10/25). Meanwhile, UA said that its profit rose 28% in Q3 as it "continued expanding its market share and benefited from sharply higher footwear sales." The WALL STREET JOURNAL's Imani Moise notes apparel sales increased 18% to $1.02B for the quarter, "led by growth in men’s training, women’s training, golf and team sports," while footwear sales increased 42% to $278.8M. UA for Q3 reported a profit of $128.2M, up from $100.5M a year earlier. Revenue rose 22% to $1.47B (WSJ.com, 10/25). In Baltimore, Lorraine Mirabella notes UA reported revenue of $1.2B in the comparable period in last year. The quarter "marked the company's 26th consecutive period of sales growth" of more than 20% (BALTIMORESUN.com, 10/25). At presstime, shares of UA were trading at $32.63, down 13.9% from the close of business yesterday (THE DAILY).

FUTURE STILL BRIGHT? In Baltimore, Holden Wilen notes UA "reiterated its outlook" for '16. The company expects revenue of $4.93B, representing growth of 24% over last year. Operating income is projected between $440-445M, reflecting growth of 8-9% over '15 (BIZJOURNALS.com, 10/25).

SBJ Morning Buzzcast: March 18, 2024

Sports Business Awards nominees unveiled; NWSL's historic opening weekend and takeaways from CFP deal

ESPN’s Jay Bilas, BTN’s Meghan McKeown, and a deep dive into AppleTV+’s The Dynasty

On this week’s Sports Media Podcast from the New York Post and Sports Business Journal, ESPN’s Jay Bilas talks all things NCAA. Big Ten Network’s Meghan McKeown shares her insight into the Caitlin Clark craze. The Boston Globe’s Chad Finn chats all things Bean Town. And SBJ’s Xavier Hunter drops in to share his findings on how the NWSL is making a social media push.

Learn more about your ad choices. Visit megaphone.fm/adchoices

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Daily/Issues/2016/10/25/Finance/Under-Armour.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Daily/Issues/2016/10/25/Finance/Under-Armour.aspx

CLOSE