Under Armour Full-Year Revenues Up Three Percent At $5 Billion
Under Armour, Inc. has released its financial results for the quarter and year ended December 31, reporting revenues up five percent to $1.4 billion in the quarter, and up three percent to $5 billion in full year 2017. The company’s products are offered in the promotional products market through supplier alphabroder (PPAI 156993).
"After years of rapid growth and building a globally recognized brand, the dynamic landscape of 2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company," says Under Armour Chairman and CEO Kevin Plank. "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."
The company reports that revenue to wholesale customers in fourth quarter declined one percent to $733 million, and direct-to-consumer revenue was up 11 percent to $575 million. Direct-to-consumer represented 42 percent of its global revenue in the quarter. For the year, revenue to wholesale customers declined three percent to $3 billion, and direct-to-consumer revenue was up 14 percent to $1.7 billion. Direct-to-consumer represented 35 percent of global revenue in 2017.
Revenue in North America was down four percent in the fourth quarter, while international revenues climbed 47 percent, representing 23 percent of total revenue. Within the company’s international business, fourth-quarter revenue in Europe, the Middle East and Africa (EMEA) was up 45 percent; up 56 percent in Asia-Pacific, and up 36 percent in Latin America. For the full year, North America revenue was down five percent, while international revenues increased 46 percent, representing 22 percent of total revenue. Full-year revenue in EMEA was up 42 percent, up 61 percent in Asia-Pacific and up 28 percent in Latin America.
Apparel revenue increased two percent to $952 million in fourth quarter. Under Armour noted growth in men's training and global football was tempered by declines in the team sports and outdoor categories. Footwear revenue was up nine percent to $246 million in the quarter, driven by strength in running but offset by team sports and basketball. Accessories revenue increased six percent to $111 million, led by men's training and running. In the full year, apparel revenue increased two percent to $3.3 billion, as strength in men's training and golf was moderated by declines in outdoor and team sports. Footwear revenue was up three percent to $1 billion, driven by strength in running and men's training, but mitigated by basketball and youth. Accessories revenue increased 10 percent to $446 million, led by strength in men's training.