Under Armour Posts Surprise Profit on Easing Cost Pressures

August 9, 2023

Sportswear maker Under Armour reported a surprise first-quarter profit and exceeded sales expectations due to reduced cost pressures and increased discounts that boosted demand for its clothing and footwear. The company’s gross margins fell to 46.1% as it offered steep discounts to clear inventories and attract budget-conscious consumers amid inflation concerns. While the company’s North American revenue fell by 9.1%, its Asia-Pacific sales increased by 14.5%, and it maintained its revenue and profit outlook for the fiscal year 2024.

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