Athletic apparel manufacturer Under Armour Inc. reported a 2% increase in direct-to-consumer sales for its second quarter ending June 30, but it didn’t break out ecommerce sales. Sales Under Armour considers direct to consumer include sales both through its website and at its 346 stores. Those sales generated 35% of revenue, or $395.5 million for the quarter, according to a press release from the retailer.
Under Armour, No. 100 in the Internet Retailer 2019 Top 1000, is working to move more direct sales from its discounted sales to full-price purchases in North America, according to chief operating officer Patrik Frisk. Currently, 90% of store revenue comes from outlet locations that sell at a discount, something that the retailer has been trying to shift for the past two years. However, the average price of items sold in stores is up, while traffic into stores is down.
Online, the average price of items sold is up as well, but conversions are down, Under Armour report. Exact figures weren’t disclosed, but continued reduction of discounted inventory continues to weigh down Under Armour’s direct sales, the retailer says.
In other earnings news:
- Consumer electronics maker Apple Inc. (No. 2) reported that ecommerce sales “returned to growth” year over year for its fiscal third quarter ending June 29, according to CEO Tim Cook. It didn’t break out exact figures, but Cook said revenue exceeded any past third-quarter period and was led by growth in Apple Watch, iPad, Mac and accessory sales. Revenue from iPhone grew faster in stores than online, Cook said, as in-store trade-ins helped to draw in customers.
- United Kingdom-based apparel retailer Next Plc. (No. 18 in the Internet Retailer Europe 500) posted an 11.9% increase in online sales of full-price items for the first half of the year ending July 27. The fashion chain, which previously reported that half of online sales are picked up in stores, partnered with Amazon Inc. (No. 1 in the Top 1000) earlier this year to install click-and-collect counters at more than 500 stores. Those have brought in around 1,000 extra customers to stores per week overall, according to CEO Simon Wolfson, a number he called “tiny” for now.
Bloomberg contributed to this report.