Under Armour’s Q4 revenue increased by 8% to $14 billion, with DTC revenue reaching $450 million

Under Armour's Q4 revenue grew 8% to $14B, including $450M in DTC revenue

The brand Ark has learned that Under Armour, the American sports brand, has released its Q4 2023 financial report. As of March 31st, 2023, the brand’s revenue reached $1.4 billion, an increase of 8%.

The following is a summary of Under Armour’s performance:

• Net profit recorded $170 million, turning losses into gains compared to the same period last year

• Gross profit margin fell 470 basis points to 43.4%

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• Online business grew by 6%, accounting for 46% of DTC sales

• DTC sales increased by 3% to $450 million

• Wholesale revenue increased by 10% to $910 million

• North American revenue increased by 3% to $860 million

By region:

• North American revenue increased by 3% to $862 million

• EMEA region revenue increased by 14%

• The Latin American market decreased by 8%

• Revenue in the Asia-Pacific region increased by 24% year-on-year, becoming the region with the largest increase in the group. In the previous quarter, revenue in the Asia-Pacific region was still declining

In the past six months, Under Armour’s inventory has been at a high level. The value of inventory in Q4 increased by 44% year-on-year to $1.2 billion. In the previous quarter, the growth rate of this data was nearly 50%.

In addition, the decline in Under Armour’s profitability has also raised concerns in the industry: compared with the previous year, the group’s gross profit margin has fallen by 470 basis points. The main reasons for this are the increase in promotion and discount activities, the increase in shipping and product costs, and the impact of the supply chain.

Stephanie Linnartz, President and CEO of Under Armour, said: “From a digital perspective, we will work to reduce promotional activities in our online business. However, in the short term, the Under Armour official website will continue to be our main platform for showcasing the brand. Therefore, we are investing in improving the online experience, including better product displays, simplified checkout processes, and a smoother website experience.”

Editor ✎Irene/Brand Ark

Statement: This article is owned by Brand Ark. Reproduction is not allowed without permission.

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