Under Armour reported its first ever quarterly loss as a public company Tuesday of $2 million, a $0.01 loss in diluted earnings per share.
However, shares still rose as the outcome was not as bad as investors feared, climbing more than 9 percent at publication time to $21.63. Revenue increased 7 percent to $1.1 billion, mostly due to a wholesale revenue increase of 4 percent to $773 million, as well as a 13 percent increase in direct-to-consumer revenue to $302 million. Gross margin decreased 70 basis points to 45.2%.
Footwear sales increased 2 percent to $270 million, up from 64 percent during the same time last year, thanks to sales of basketball merchandise and the timing of liquidations. Apparel revenue grew 7 percent to $715 million, including growth in training, golf and team sports.
“Our first quarter results were in line with our expectations and we’re off to a solid start in 2017,” said Under Armour chairman and CEO Kevin Plank. “By proactively managing our growth to deliver superior innovative product, continuing to strengthen our connection with consumers and increasing our focus on operational excellence – we have great confidence in our ability to drive toward our full year targets.”
The company maintains its FY2017 outlook.