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Andemar'S Double Growth In Sales And Revenue In The Third Quarter Benefited From Overseas Performance

2018/10/31 9:21:00 87

Under ArmouPerformanceAndrew

Both sales and profits exceeded expectations, this time.

Under Armour

Still benefited from a surge in overseas performance.


In the United States local time on October 30th, sports brand Under Armour released its third quarter earnings report.

In the three months ended September 30th, global sales grew by 2.4% to $1 billion 440 million over the same period, and analysts expected more than 1 billion 420 million dollars.

After deducting one-time payments, earnings per share were 25 cents, up from 12 cents.

In the third quarter, net profit was $75 million 300 thousand, compared with $54 million 200 thousand in the same period last year.

On the day of earnings announcement, Under Armour's share price rose 11% in pre trading.

Up to now, its stock price has increased by more than 25% this year.

The quarterly report shows that the contribution of overseas markets is obvious, sales increased by 15% to 351 million US dollars, accounting for 24% of the total sales.

Among them, the most rapidly growing regions are Latin America, followed by Europe, the Middle East, Africa and the Asia Pacific region.

While international revenues remain strong,

North American market

The performance is still hard - in the third quarter, sales fell 2% to $1 billion 100 million over the same period.

In the second quarter, sales of the brand in North America increased by 2% to $843 million, which is the first time in the past year that Under Armour has grown locally.

Today, North America's performance has slipped again.

In terms of category, clothing revenue increased by 4% over the same period.

shoes

Category sales were basically flat, and accessories sales fell by 6%.

According to the financial report, Stephen Currie's signature war boots series and the Project Rock series of "megalith" Dwayne Johnson endorsed are the most popular shoes in recent years.

After three quarters, Under Armour raised its profit forecast for the 2018 fiscal year - excluding the impact of restructuring plan costs, earnings per share are expected to be between 19 and 22 cents, up from 16 to 19 cents a year earlier.

Previously, Under Armour estimated that the overall sales growth in the 2018 fiscal year was about 3% to 4%, while North American sales were expected to decline in a median figure, and international revenue growth is expected to exceed 25%.

It is worth noting that from the beginning of 2017, this family

American brand

Faced with the backlog of overstock, we have been offering discount promotions for a long time.

The outside world has been worried that the high inventory level will make more low price activities among the low and middle end retailers, which will affect the brand image.

In July this year, the company's chief financial officer, David Bergman, said at the earnings conference that sales activities would gradually decrease in the third and fourth quarters of 2018, and promised that the inventory problem would be restored by the end of 2018.

The third quarter financial report shows that Under Armour's excess inventory has decreased.

Although sales and earnings were beyond expectations, inventory levels were also effectively resolved, but CNBC reported that many analysts believe that the company's performance prospects are still not optimistic because of weak footwear sales, poor product distribution and slow progress in Brand Revitalization.

Camilo Lyon, an analyst at the investment banking group in Canada, wrote in the report that the brand

shoes

There is still a lack of substantial improvement in the category of products, most of which are changes in color design. "More importantly, our discussions with the industry show that there is also a lack of excitement in the product line in 2019."

In addition, Jane Hali&Associates LLC, an industry research firm, points out that compared with its competitors, Under Armour's display is unsatisfactory.

Before the release of the earnings report, the distribution report released by the research institute showed that the popularity of Under Armour in the dealer stores was reduced. "Kohl's and Dick's Sporting Goods stores, the display position of the brand is no longer in the front, and Nike continues to be the focal point of the two retailers."

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