The American sporting goods provider Under Armor Inc. exceeded expectations in the third quarter of the 2024/25 financial year, despite a significant drop in profits. On Thursday, the company then announced somewhat more optimistic prospects for the overall year.
In the period from October to December, under Armor achieved sales of $ 1.40 billion (1.35 billion euros). The proceeds thus failed to miss the level of the previous year’s quarter by six percent (currency -adjusted -6 percent), but was significantly higher than was predicted in advance.
In the EMEA region, sales are growing
In North America, sales decreased by eight percent to $ 844 million, and in international business it fell by one percent (disabilities -2 percent) to 558 million euros. An increase of five percent (currency-adjusted +3 percent) in the EMEA region, which includes Europe, the Middle East and Africa, was not enough to loss in the Asian-Pacificish area (-5 percent, adjusted currency -6 percent) and in Latin America (-16 percent, currency -adjusted -9 percent) to compensate.
Thanks to the sunken product and freight costs as well as lower price reductions, the gross margin improved from 45.1 to 47.5 percent. However, the operational result fell by $ 81 percent to $ 13.5 million due to higher sales community costs and expenses for restructuring measures. The net win, which was still $ 110.8 million in the same year, slipped to $ 1.23 million (1.19 million euros).
The management looks a little more optimistic about the rest of the year
In view of the present results, management updated its annual forecasts. For 2024/25, it now expects a decline in sales by ten percent after a minus in the “low double -digit percentage range” was expected.
The forecast for the operational profit adjusted for special effects was raised from $ 185 to $ 185 to $ 195 million. The target area for the designated diluted loss per share is now $ 0.48 to $ 0.50. Previously, a corresponding deficiency between $ 0.48 and $ 0.51 was expected for the current year.