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Under Armour Q3 Revenues: Could It Be A Turn-around Tale?

November 6, 2021

Under Armour (NASDAQ: UAA) has actually stayed in business for over two decades currently, formally IPO’ing in 2005. It’s been a love/hate connection for numerous financiers without scarcity of disturbances as well as detractions, seeing the supply rate bounce from solitary figures to the mid-20s wherefore seems like an endless time.


    Under Armour’s organization design

    Kevin Slab established business in 1996, laying out to develop a clothing brand name that would certainly maximize professional athletes’ efficiency. The garments organization is a tight-margin sector with numerous big rivals, yet Under Armour has actually had the ability to become a multi-billion buck brand name even with these obstacles.

    It spearheaded in the health and fitness sector with thermal equipment that adjusted to your body temperature level in 1997, as well as ever since, it has actually developed the biggest linked health and fitness neighborhood on the planet with its procurement of MyFitnessPal in 2015. Under Armour has actually taken on an influencer advertising approach for several years to construct its brand name, with symbols like Steph Curry as well as Dwayne “The Rock” Johnson amongst its group of brand name ambassadors.

    Q3 2021 Revenues Outcomes

    Profits can be found in at $1.55 billion v.s. expert quotes of $1.48 billion as well as incomes per share were dual that of assumptions, $0.31 v.s. $0.15 anticipated.

    Sales seem back on the right track regardless of supply chain disturbances, with sales up 27% in Latin America, up 15% in Europe, 19% in the Asia Pacific, as well as a small 8% in its core market, The United States and Canada. 

    Wholesale incomes were up 10% to $911 million, as well as direct-to-consumer sales were up 12% to $604 million, attributable resumed economic climates, as well as this enabled the firm to counter its 4% decrease in ecommerce sales.

    Future Expectation

    Assistance has actually been upgraded for the 2021, with more than anticipated profits, incomes, as well as gross margins. This is a wonderful stepping rock for business to return on the right track, yet Under Armour still has a lengthy means to visit get to the elevations of rivals Nike (NASDAQ: NKE) as well as Adidas. Investments in the brand name, development, sustainability, as well as customer-centricity might at some point repay.