Second quarter revenue at Under Armour remained flat and declined 1 percent currency neutral versus the prior year at 1.6 billion dollars.
For fiscal year 2024, revenue is expected to be down 2 to 4 percent versus the previous expectation of flat to up slightly, gross margin is expected to be up 100 to 125 basis points, operating income and diluted earnings per share outlook remain unchanged at 310 million to 330 million dollars and 47 cents to 51 cents, respectively.
"Our second quarter results, particularly profitability, exceeded our expectations. Consequently, we are maintaining our fiscal 2024 operating income and EPS outlook even as we lower our revenue expectations primarily in response to challenges in North America during the back half of the year," said Under Armour president and CEO Stephanie Linnartz.
Review of Under Armour’s Q2 results
The company’s wholesale revenue decreased 1 percent to 940 million dollars and direct-to-consumer revenue increased 3 percent to 596 million dollars due to a 2 percent increase in eCommerce revenue, which represented 35 percent of the total direct-to-consumer business in the quarter, and a 4 percent increase in the company-owned and operated store revenue.
Revenues in North America decreased 2 percent to 991 million dollars and international revenue increased 5 percent or 3 percent currency neutral to 573 million dollars. In the international business, revenue increased 9 percent or 4 percent currency neutral in EMEA and 3 percent or 7 percent currency neutral in Asia-Pacific. Revenue declined 8 percent or 19 percent currency neutral in Latin America.
Apparel revenue increased 3 percent to 1.1 billion dollars, footwear revenue was down 7 percent to 351 million dollars and accessories revenue increased 3 percent to 114 million dollars.
Gross margin for the quarter increased 260 basis points to 48 percent, operating income was 146 million dollars, net Income was 110 million dollars and diluted earnings per share was 24 cents.