Under Armour struggled to meet its revenue and sales targets in the first quarter of fiscal year 2023, but the sportswear retailer is confident in its long-term prospects and sticking to projections for the full fiscal year, considering the three-month period that ended June 30 as a blip on the economic radar.
The company’s revenue was flat year over year for the first quarter at $1.3 billion, with wholesale revenue up 3% compared to fiscal year 2022 to $792 million and direct-to-consumer (D2C) revenue down 7% from the same three months a year earlier to $521 million, according to a Wednesday (Aug. 3) press release. That drop was largely due to an 8% dip in owned and operated store revenue.
For the first quarter of fiscal year 2023, Under Armour’s eCommerce revenue dropped 6% and represented 39% of the total D2C business during the quarter, the release stated.
“We delivered our quarter, are holding our full-year revenue outlook, and remain bullish on our brand strength while we navigate the current environment,” said Under Armour Interim President and CEO Colin Browne in the release. “…Moving forward, we are digging in to amplify the strengths of our core strategy while creating additional opportunities for athletes to wear UA throughout their day.”
In May, Under Armour announced that CEO Patrik Frisk would be stepping down after just two years in the top job. Browne assumed the interim CEO role June 1, and the company is continuing with its previously announced sweeping, multi-pronged transformation.
Read more: With Stock at Clearance Sale Price, Under Armour CEO Departs
Those efforts are aimed at mitigating supply chain disruptions from China, growing the company’s D2C and eCommerce sales channel, and reversing a slump in footwear sales which are dwarfed by the company’s apparel revenues.
Frisk’s 28-month pandemic-era leadership tenure at Under Armour was not under ideal circumstances, as he took the helm just two months before lockdowns and supply chain disruptions began.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More