Under Armour’s fourth-quarter earnings beat Wall Street estimates — but its stock still fell 5.7% on Tuesday.
Revenue for the company’s fourth quarter was up 8% to $1.4 billion, driven by $862 million from North America.
Demand for Under Armour’s products has slumped compared to rival brands Nike and Lululemon. In March, Nike said its Q3 revenues rose 14% from the year prior to $12.4 billion, while Lululemon reported a quarterly revenue surge of 30% to $2.8 billion.
CEO Stephanie Linnartz, who joined Under Armour in February, said 2024 will be a “year of building” for UA as it targets women’s product sales as a growth area. Women’s products currently make up less than 25% of Under Armour’s business.
“We will go after women harder than this company has ever seen,” Linnartz promised.
Under Armour anticipates 2024 revenue to be “flat to up slightly,” with operating income expected to reach between $310 million to $330 million. Its operating income for fiscal year 2023 was $284 million.
NBA star Steph Curry extended his ties to the company last month with a $75 million deal that will give him 8.8 million restricted stock units. The deal could become a lifetime contract for Curry if revenue goals are met.