Under Armour Records a $22-Million Profit in the First Quarter of 2019

| May 2, 2019 | 0 Comments

After spending 2017 and 2018 restructuring the company, Under Armour has netted positive results in the first quarter of 2019. Under Armour had its revenues rise 2 percent to $1.2 billion and recorded a net income or profit of $22 million in the first three months of this year.

North America revenue decreased 3 percent to $843 million and the international business increased 12 percent to $328 million. Apparel revenue increased 1 percent to $775 million. Footwear revenue increased 8 percent to $293 million primarily driven by Under Armour’s run category. Lastly, accessories revenue decreased 11 percent to $82 million primarily driven by “planned lower sales of backpacks and bags related to a strategic relaunch of key product.”

Under Armour’s operating income in the first quarter was $35 million. Under Armour now expects to have a 2019 operating income of $220 million to $230 million.

“Our first quarter results demonstrate our unwavering commitment to protecting and growing our premium performance athletic brand through a disciplined go-to-market process that delivers innovative products and experiences to make athletes better,” said Under Armour Chairman and CEO Kevin Plank in a statement. “As we execute against our long-term plan, Under Armour will emerge from 2019 and our ‘Protect This House’ chapter as an even stronger brand and company.”

In 2018, Under Amour saw its revenue increase 4 percent to $5.2 billion but had an operating loss of $25 million and a net loss of $46 million due to $204 million of charges related to the 2018 restructuring plan. Under Armour laid off 400 employees last year including 50 employees who worked at the company’s Baltimore headquarters.

Under Armour is planning $210 million of capital expenditures this year.

Under Armour, which is currently headquartered at Tide Point in Locust Point, also has a distribution facility in Curtis Bay. It is planning a new 50-acre headquarters at Port Covington where it already has Building 37, which converted the former Sam’s Club to a 170,000 sq. ft. office, cafe, and amenity space. It will also open a new a 1.3-million sq. ft. distribution facility at Tidepoint Atlantic in Sparrows Point next week.

Under Armour previously announced it would begin construction on Phase 1 of its new campus at Port Covington last year, but that did not move forward. No timetable has been given for when construction will be begin.

Under Armour completed renovations earlier this year to the facade, offices, and cafe of the Cheer building at its Locust Point headquarters. The Cheer building was formerly an Overflo warehouse before it was converted into the 140,000 sq. ft. Under Armour building in 2009.

Last last year, Under Armour closed a 42,840 sq. ft. office at McHenry Row in Locust Point. Following the move, Under Armour transitioned its team sports division back to Tide Point and its call center team was moved to Building 37 in Port Covington.

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