Under Armour generated sales of $1.2 billion (€1.1 billion) in the first quarter of the fiscal year, which ended on June 30. That is 10% less than in the same period last year. Sales in the EMEA region remained constant. In North America they fell by 14%, in the Asia-Pacific region by 10% and in Latin America by 16%. Wholesale sales fell by 8% to $681 million (€617 million), D2C sales fell by 12% to $480 million (€435 million). Looking at the product groups, clothing sales fell by 8% to $758 million (€686 million), accessories sales fell by 5% to $93 million (€84 million) and footwear sales fell by 15% to $310 million (€281 million).
Gross margin increased by 110 basis points to 47.5%, due to less heavy discounts and lower production costs. The bottom line was an operating loss of $300 million (€272 million); excluding transformation costs and other extraordinary expenses, there would have been an operating profit of $8 million (€7 million). The net loss is $305 million (€276 million), and the adjusted net profit is $4 million (€3.6 million).
In May 2024, a restructuring plan was presented to make the company more efficient. The company expects that the remaining costs under the existing restructuring plan will be incurred in the 2024/2025 fiscal year. A share buyback program worth $500 million (€453 million) was also announced. Shares worth $40 million (€36 million) were bought back in the first quarter. For the full fiscal year, Under Armour now expects an operating loss of $194 million (€176 million) to $214 million (€194 million). Operating profit adjusted for special items is expected to be between $140 million (€127 million) and $160 million (€145 million).
