Apparel revenue rose 11% to $681M during the quarter, while footwear revenue fell 2% to $237M. Accessories revenue increased 22% to $123M.
Under Armour's gross margin rate fell 190 bps to 45.8% of sales as inventory management initiatives and F/X pressure factored in. SG&A expenses came in at 46.2% of sales, up 40 bps from a year ago.
Management approved a new restructuring plan. "As we stand up our category management structure within a consumer-led approach, we intend to meaningfully increase our go-to-market speed and amplify our digital capabilities," says CEO Doug Plank. "We've identified a number of areas to enhance our operational capabilities, drive process improvement and gain greater efficiencies," he adds.
Looking ahead, Under Armour expects full year revenue to grow 9% to 11% vs. a prior forecast for +11% to +12%.
Previously: Under Armour beats by $0.03, revenue in-line (Aug. 1)
UAA -5.09% premarket to $19.00.
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