Thursday November 30, 2023

Under Armour Rallies in Q1

  • Under Armour posted strong Q1 results, with $1.26 billion in revenue due to a 35% increase in sales from a year ago.
  • The brand rebounded from an abysmal 2020, marked by losses and layoffs.
Under Armour/Design: Alex Brooks
Copy Link
Link Copied
Link Copied

Before the global pandemic started, Under Armour was floundering, with sagging revenue and endorsement deals that failed to deliver big returns. 

The company’s Q1 2021 earnings show a major bounce back. Sales rose 35% year-over-year, bringing revenue to $1.26 billion. Online sales led the charge with 69% growth. 

An overall profit of $77.8 million will help begin to erase ugly memories from 2020.

The first quarter of 2020 saw the company lose $590 million, with sales down 23% due to COVID-related store closures. Pandemic-related layoffs and restructuring costs contributed $473 million to the losses in 2020. 

Under Armour renegotiated sponsorship contracts to pay out over a longer term and ended major deals.

  • Under Armour declined to renew its on-field sponsorship deal with the NFL, estimated to be worth $10 million to $15 million per year.
  • The company retained Tom Brady as a sponsored athlete and also has Steph Curry and Bryce Harper on its roster.
  • A 15-year, $280 million licensing deal with UCLA was terminated, as was a 10-year, $50 million deal with the University of Cincinnati. UCLA sued Under Armour for prematurely ending what was the biggest licensing deal in college sports when signed in 2016. 
  • Under Armour revealed it paid a $9 million fine to the SEC for misleading investors in 2015 and 2016 by recording $408 million in expected sales as current revenue.

Once seen as a legitimate threat to adidas and Nike, Under Armour still has a ways to go before equaling those rivals. Adidas recorded $6 billion in Q1 revenue, and Nike hit $10.4 billion for the fiscal quarter ending Feb. 28.

Copy Link
Link Copied
Link Copied

What to Read

The College Football Playoff is considering rotating TV networks for the national championship game.

CFP Considers Super Bowl-Like Rotation For National Championship Game

Multiple networks could share rights to the championship game, sources told FOS.

Sports Apparel Giants Looking For Holiday Season Turnaround

Once-surging category enters the critical selling period mired in a slump.
podcast thumbnail mobile
Front Office Sports Today

What’s Next for Mark Cuban, Mavericks After $3.5B Sale?


Featured Today

Lane Kiffin

Ole Miss, Lane Kiffin Lawyers Argue for Dismissal of Player Lawsuit

FOS obtained audio of Lane Kiffin's interaction with the player behind lawsuit.
LSU Lady Tigers head coach Kim Mulkey reacts against the Iowa Hawkeyes during the NCAA Womens Basketball Final Four National Championship at American Airlines Center.
November 6, 2023

Who Is The Highest-Paid Women’s College Basketball Coach?

LSU rewarded Kim Mulkey after winning a national title after her second year leading the program.
The Pac-12’s Collapse Will Have Ripple Effects on College Basketball.
November 6, 2023

The Pac-12’s Collapse Will Have Ripple Effects on College Basketball

The existing Pac-12 host a college basketball season for the last time.
Favre Presley
November 3, 2023

Brett Favre Controversy Casts Shadow Over Mississippi Gubernatorial Race

Candidate Brandon Presley has made the scandal one of his talking points.


Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Multiple - USA Careers
Live Nation
Multiple - USA Careers
Saco Bay PT
Multiple - USA Careers
The swoosh logo at Nike Eugene.

Nike Misses Revenue Wall Street’s Projections, But Company’s Stock Soar

The company offset the shortfall by exceeding expectations in earnings per share.
June 30, 2023

Nike To Revive Kobe Signature Shoe Line

Late HOFer will again be the center of a signature shoe line.
The PGA Tour and PIF have a self-imposed Dec. 31 deadline to finalize their golf merger.
August 7, 2023

Saudi Arabia’s PIF Aims Higher With Launch of Sports-Focused Investment Company

The PIF has launched a new company, SRJ Sports Investments.

NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.
At Dick's Sporting Goods in Fairless Hills, Store Administrative Assistant Christine Vandfermay, of Philadelphia, restocks some Philadelphia Eagles items.
May 23, 2023

Dick’s Sporting Goods Sees Modest Growth, Less Foot Traffic

Dick's Sporting Goods saw a 5.3% increase in net sales in Q1.
Hellen Obiri of Kenya crosses the finish line to win the women's division at the 2023 Boston Marathon.
May 16, 2023

On Wants More Star Power, Visibility for Next Growth Phase

On is looking to grow through tennis and other verticals.
May 11, 2023

Topgolf Callaway Lowers Sales Expectations

Callaway cut its profit forecast for this year.
May 10, 2023

Endeavor Posts Record Quarter Amid UFC-WWE Merger Plans

Endeavor bought WWE in April, it also sold its IMG for $1.25B.