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International sales lift Under Armour results

International sales lift Under Armour results

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By: SportBusiness International team

14 Feb 2018
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Under Armour chief executive Kevin Plank has hailed the sportswear company's latest financial results, which were boosted by a 47-per-cent increase in sales outside of North America.

International revenues accounted for 23 per cent of total turnover, with fourth-quarter sales leaping by five per cent to $1.37bn (€1.1bn) – beating analysts’ expectations.

The company reported a net loss of $88m in comparison with net income of $103m a year ago, with the company incurring a one-off charge of $39m due to new US tax legislation. Further restructuring charges of between $110m and $130m are expected before the end of 2018.

"2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company," Plank said. "Our fourth quarter and full year results demonstrate that the tough decisions we're making are generating the stability necessary to create a more consistent and predictable path to deliver long-term value to our shareholders."

North American sales in the fourth quarter fell by four percent, but direct-to-consumer revenue increased by 11 per cent overall. Under Armour said that it anticipates an overall sales percentage growth in the low single digits, incorporating a mid-single-digit decline in North American sales and international growth of more than 25 per cent.

"We've learned a lot of lessons in 2016 and 2017," Plank said. “We think about footwear, women's and international being our three growth drivers.”

In the final quarter of 2017, Under Armour announced partnerships with the Canadian Olympic Committee and the Austrian Ski Federation.

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