Apparel Sales picked up in America
With the right lines you can lure cautious American consumer to spend money on apparel, footwear and accessories. This was successfully applied by American Under Armour reporting that net revenues increased in the first quarter by 23 % to USD 384 million and this would mean on an annual basis total sales in the order of USD 1.78 to USD 1.80 billion (+ 22 %). The operating results is increasing in parallel and in the first quarter the increased by 15 % to USD 24 million.
In the first quarter apparel turnover was USD 283 million (+ 23 %) and for all categories (Men’s, Women’s, Youth) and also new and innovative products. The Direct-to-Consumer revenues (25% of total revenues) grew 49%. Footwear increased 24 % to USD 64 million primarily thanks to new running styles and strength in baseball cleats and the turnover of accessories has increased by 26% to USD 30 million. Gross margin however declined slightly from 46.4 to 45.6 % reflecting the less favourable North American apparel and accessories margins. For Under Armour it was the eight consecutive quarter of revenue growth in excess of 20 %.