Under Armour Inc. reported 2% growth in ecommerce revenue during its 2024 fiscal second quarter ended Sept. 30. That guided 3% growth in direct-to-consumer sales, which totaled $596 million.
Under Armour is No. 97 in the Top 1000. The Digital Commerce 360 database ranks North America’s leading online retailers by their web sales.
CEO Stephanie Linnartz said Under Armour’s loyalty program, which went live in late July, exceeded initial expectations. The program, UA Rewards, surpassed 1 million members in its first few months, she said.
“So far, UA Rewards members are almost twice as likely to make a repeat purchase and return to the brand within 90 days. So early points on the board in building greater brand love and loyalty,” Linnartz said. She added that she expects UA Rewards to inspire better sales conversion as Under Armour continues to scale the program.
Under Armour revenue
In its fiscal Q2, Under Armour reported flat year-over-year revenue at $1.6 billion. Meanwhile, Under Armour wholesale revenue decreased 2% to $940 million. Under Armour ecommerce revenue represented 35% of direct-to-consumer revenue, the company said. It also represented a 4% increase in owned and operated store revenue.
Under Armour ecommerce accounted for about $208 million in revenue, according to Digital Commerce 360 estimates.
In North America, Under Armour revenue decreased 2% to $991 million. International revenue increased 5% to $573 million. More specifically, in Europe, the Middle East and Africa (EMEA), revenue increased 9%. It increased 3% in the Asia-Pacific region and declined 8% in Latin America.
Under Armour net income for the quarter was $110 million. Its inventory was up 6% year over year, and Under Armour values it at $1.1 billion.
Linnartz said Under Armour has 17 brand houses, or physical retail locations, and aims to open more in the next few years.
Under Armour social media initiatives
Linnartz said most Under Armour consumers start their shopping journey on social media, the brand’s website, and its app.
“So it’s critical that we improve this experience,” Linnartz said. “Within this context, our teams are working hard to accelerate our ecommerce business by enhancing our search and browse capabilities, upgrading our size and fit guides, adding athlete shop the look sections, and increasing mobile speed.”
She added that Under Armour is driving a new approach to its digital and social media strategy. That has yielded improved performance metrics across its channels with strong double-digit growth in followers, shares, likes, and reach across its Instagram accounts. These are all leading indicators that Under Armour’s strategies are working, she said.
“On TikTok, which continues to be our fastest-growing platform, we’ve seen significant increases in followers, engagements, and views on the Under Armour channel,” she said.
Under Armour earnings
For the fiscal second quarter ended Sept. 30, Under Armour reported:
- Total revenue was flat year over year at $1.6 billion.
- Under Armour ecommerce revenue grew 2%. The retailer did not attach a dollar amount to the growth.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.
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