U.S. sports and apparel brand Under Armour reported a decrease in total revenues for the third quarter, despite an uptick in its international sales including the Asia-Pacific region.
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The Baltimore-based Under Armour said revenues for the third quarter dipped 1% to US$1.4 billion, or flat on a currency neutral basis. By region, Under Armour Asia-Pacific saw an increase of 4%, or 6% currency neutral, only to be outpaced by the EMEA region, which rose 9%, or 13% currency neutral. Overall, international sales gained 5% to $368 million, or 8% currency neutral.
Under Armour’s largest market, the U.S., fell 4% to $1 billion, representing 26% of the company’s total revenues for the three months ending September 30,2019.
Operating income totalled $139 million, and net income was $102 million or $0.23 diluted earnings per share, it said.
“Building our long-term brand strength remains at the centre of everything we do. Our ongoing transformation across the business continues to make us smarter, faster and more operationally excellent,” said Under Armour chairman and CEO, Kevin Plank, in a press release.
Looking ahead, Under Armour lowered its sales expectations for the fiscal year. It now expects revenue to be up about 2% versus the previously expected range of 3 to 4%.
The company said that lower-than-planned excess inventory to service the off-price channel; ongoing traffic and conversion challenges in direct-to-consumer; and negative impacts from changes in foreign currency, were contributing factors to lower sales growth.
Earnings per share are now expected to reach the high end of the previously given range of approximately of $0.33 to $0.34, the company added.
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“As we make the turn into 2020, we are confident in our ability to
deliver our fourth quarter targets while proactively supporting
higher levels of strategic marketing investments that will further fuel
the Under Armour brand,” concluded Plank.