Under Armour reported a 9% increase in fourth-quarter revenue to $1.53 billion, beating analysts’ estimates of $1.47 billion.
The sports apparel company previously stated its goals to become a more premium label — similar to Nike and Lululemon — and CEO Patrik Frisk said he’s confident that “we are running a stronger company — one that is able to deliver sustainable, profitable growth and value creation for our shareholders over the long term.”
With a net income of $109.7 million, Under Armour saw revenue increases across the globe during the quarter, with help from higher prices of hoodies and leggings.
- North American revenue jumped 15% to $1.1 billion, with international revenue growing 3% to $461 million.
- Despite accessories sales falling 27% to $107 million, apparel grew 18% to $1.1 billion, and footwear ballooned 17% to $283 million.
- E-commerce sales jumped 4% year-over-year.
Under Armour raised its outlook, too, with sales expected to move from a low-single-digit increase to a mid-single-digit increase. The company will unveil a more detailed outlook in May.
Supply Chain Challenges
Similar to its rivals, Under Armour said that the company’s profit in the near future will be affected by the hike in freight and shipping expenses, and it was forced to reduce its order for this spring and summer due to COVID-19 outbreaks and employee shortages.
Chief Financial Officer David Bergman called the supply chain issues a “temporary speed bump.”
