Under Armour said on Tuesday that its sales dropped in the fourth quarter, but not as much as experts had predicted. The company’s focus on simplifying its product range and selling items at full price, instead of offering big discounts, helped reduce the impact.
The firm has been going through a strategic makeover to steady its business after a tough year. Among the initiatives have been reducing promotions, streamlining inventory management, trimming jobs, and emphasising selling more products at full price to maintain brand value.
Quarterly revenue fell 11 per cent from a year earlier to US $ 1.18 billion—marginally higher than Wall Street’s estimate of a 12.4 per cent fall to US $ 1.17 billion, data from LSEG shows.
But the outlook is still guarded. Under Armour sees first-quarter revenue falling between 4 per cent and 5 per cent, a steeper decline than the 1.9 per cent fall analysts had forecast, according to LSEG.
In another indication of doubt, the company refused to give a full-year forecast, citing volatile trade policies and general economic headwinds, including possible blowback from tariffs that would weigh on consumer spending and increase operating expenses.
