Despite exceeding Wall Street expectations for the fourth quarter, American sportswear company Under Armour’s shares plummeted 5.7 per cent. The company’s fourth-quarter revenue increased 8 per cent to US $ 1.4 billion, with US $ 862 million coming from North America.
Compared to competing companies Nike and Lululemon, demand for Under Armour’s products has fallen. Lululemon announced a quarterly revenue jump of 30 per cent to US $ 2.8 billion in March, while Nike revealed its Q3 revenues rose 14 per cent from the year prior to US $ 12.4 billion.
Under Armour’s new CEO Stephanie Linnartz stated that 2024 will be a “year of building” for the company as it focuses on women’s goods sales as a growth sector. Currently, less than 25 per cent of Under Armour’s sales are made up of items for women.
“We will go after women harder than this company has ever seen,” Linnartz promised.
In terms of revenue, Under Armour expects 2024 to be “flat to up slightly,” with operating income anticipated to be in the US $ 310 million to US $ 330 million range. It had an operational profit of US $ 284 million for the 2023 fiscal year.
