Under Armour got back on track for the second quarter after lackluster results earlier this fiscal year.
The athletic apparel and equipment retailer generated $1.57 billion in revenue in fiscal Q2 2023, which ended Sept. 30. That’s a 2% increase year-over-year, surpassing Wall Street estimates of $1.55 billion.
- Apparel revenue reached $1 billion, a 1.9% increase year-over-year.
- Footwear generated $375 million in revenue, up from $329 million in Q2 2022.
- At the end of Q2 2023, Under Armour had $854 million in cash and cash equivalents.
- The company repurchased $25 million of Class C common stock during the quarter.
Despite the results, Under Armour anticipates continued uncertainty due to inflationary pressures and supply chain disruptions. As a result, it lowered its full-year revenue guidance to “grow at a low-single-digit percentage rate” instead of projected 5%-7% growth.
End of an Era
Last year, Under Armour ended its on-field licensing contract with the NFL as it restructured its business to focus on being “a performance brand.”
The terminated deal barred Under Armour’s logo from being worn or displayed on the field during NFL regular-season and playoff games.
In May, Under Armour reached a settlement with UCLA after it ended a 15-year, $280 million sponsorship deal, for which it has to pay the latter $67.5 million.
Under Armour has also cut ties with Cal on a 10-year, $85 million deal and with Cincinnati on a 10-year, $50 million deal for which it paid $9.75 million to exit.