Baltimore-based Under Armour hit the billion-dollar mark in revenue last quarter, but its profits took a tumble.
The active apparel and footwear company’s net revenues rose 28 percent to $1 billion in the three months ended June 30, compared with $784 million in the second quarter of last year. At the same time, however, operating income dropped 39 percent to $19 million—inclusive of a $23 million impairment related to Sports Authority’s liquidation—and net income decreased 58 percent, from $15 million to $6 million.
But Sports Authority appeared to be the only blight on the business in Q2. Wholesale net revenues were up 27 percent year-over-year to $635 million versus $501 million in the year-ago period, while the direct-to-consumer segment grew 28 percent year-over-year to $321 million compared to $251 million last year. On a regional basis, North America net revenue rose 22 percent year-over-year and international sales—representing 15 percent of total revenues in Q2—climbed 68 percent, or 72 percent on a currency neutral basis.
Read more at Sourcing Journal.