Sportswear retailer Under Armour has said it delivered better than expected profitability and remains “on track” for the full year, despite a decline in sales in its third quarter.

Under Armour Dubai 1

Under Armour has delivered better than expected profitability despite a decline in sales

Under Armour posted revenue of $1.5bn (£1.19bn) in its third quarter to December 31, 2023, down 6% year on year.

Wholesale sales for the quarter were also down 13% to $712m (£563.8m), while direct-to-consumer revenue was up 4% to reach $741m (£586.9m).

Sales in Under Armour’s home market of North America dropped 12% during the quarter to $915m (£724.7m), while international revenue was up 7% to $566m (£448.3m).

Across its international business, revenue was up 7% in both the Europe, Middle East and Africa and Asia-Pacific regions. Revenue in Latin America also increased by 9%.

Under Armour said sales of apparel and footwear were both down 6% and 7% respectively, while accessories revenue was flat for the quarter.

In terms of outlook, Under Armour said it expects sales to be down between 3% and 4%, “tightening the previous expectation” of a decline of between 2% and 4%.

Gross margin for the full year is now anticipated to be up between 120 to 130 basis points, up from the previously pledged expectations, while selling and administrative expenses are unchanged from “flat to down slightly”.

Under Armour president and chief executive Stephanie Linnartz said: “Despite a mixed retail environment during the holiday season, our third quarter revenue results were in line with our expectations; we were able to deliver better than anticipated profitability and remain on track to achieve our full-year outlook.

“As we close out fiscal [year] 2024 and our strengthened leadership team begins to come up to speed in the quarters ahead, we are working to reset Under Armour toward a path of improved revenue growth and enhanced value creation in the future.”