Under Armour Reports Second Quarter Loss as Sales Continue to Shrink
The American sports equipment company, led by Kevin Plank, pointed to tariff measures and an unfavorable mix of channels and regions as major factors behind its declining profitability.
Under Armour closed the second quarter with reduced sales and a net loss. The company also lowered its annual forecasts following these results.
Financial Performance in the Second Quarter
- Revenues dropped by 4.72%, totaling $1.333 billion.
- Year-to-date sales fell 4.45% to $2.467 billion.
- Operating income sharply declined to $17 million, down from $173 million in the first quarter of last year.
- Gross margin decreased by 250 basis points to 47.3% primarily due to supply chain challenges caused by higher tariffs and an unfavorable channel and regional mix.
“Gains from foreign exchange and pricing helped offset some of these impacts,” the company noted.
Net Loss Highlights
Under Armour posted a net loss of $18.81 million in the second quarter, compared to a profit of $170 million during the same period last year.
Summary
Under Armour continues to navigate financial challenges driven by tariffs and shifting market dynamics, resulting in declining sales and profitability.
Would you like this summary to be more detailed or concise?