×
183
Fashion Jobs
NEEJ
Business Development Manager
Permanent · MUMBAI
LIFESTYLE BRANDS
Regional Sales Manager, Peter England - Bangalore
Permanent · BENGALURU
KITEX GARMENTS LIMITED
General Manager - Merchandiser
Permanent · ALUVA
ZODIAC CLOTHING CO LTD
Sourcing Officer (Fabric & Garment)
Permanent · MUMBAI
LIFESTYLE BRANDS
Head of Marketing, Louis Philippe - Bangalore
Permanent · BENGALURU
LIFESTYLE BRANDS
Group Manager - E-Commerce Product (B2B)
Permanent · BENGALURU
LIFESTYLE BRANDS
Manager - Product, Louis Philippe
Permanent · BENGALURU
PANTALOONS HO
Senior Executive - Marketing
Permanent · PUNE
LIFESTYLE BRANDS
Manager - Trade Channel, Finance
Permanent · BENGALURU
LIFESTYLE BRANDS
Executive -Key Accounts (Mis),lp
Permanent · BENGALURU
LIFESTYLE BRANDS
Senior Executive - Garment Technician (ww &Amp; Kids), Pdqa
Permanent · BENGALURU
LIFESTYLE BRANDS
Sales Executive - Kannur &Amp; Kasargod
Permanent · BENGALURU
HIGH FASHION GARMENT COMPANY
Manager Humanr Resource (Male) From Mumbai Only
Permanent · MUMBAI
RAJ KHATRI FILMS PVT LTD
Digital Marketing Executive
Permanent · MUMBAI
ANANDGUPTA COUTURE
Social Media Marketing & Fashion Design Assistant
Permanent · MUMBAI
DESIGNR
Sales Officer
Permanent · NEW DELHI
NETE.IN
CRM & Logistics Executive
Permanent · MUMBAI
FABINDIA OVERSEAS PVT. LTD.
Retail Planner
Permanent · NEW DELHI
SELECTIVE GLOBAL SEARCH PVT. LTD.
Business Development
Permanent · NEW DELHI
AJIO - RELIANCE INDUSTRIES LTD
Sales Officer
Permanent · KARIMNAGAR
AJIO - RELIANCE INDUSTRIES LTD
Sales Officer
Permanent · MIRYALAGUDA
AJIO - RELIANCE INDUSTRIES LTD
Sales Officer
Permanent · KOTHAGUDEM

Under Armour forecasts bigger loss than expected as costs rise

By
Reuters
Published
today May 2, 2018
Reading time
access_time 2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Sportswear maker Under Armour Inc. forecast a bigger-than-expected loss for the second quarter on Tuesday, taking the shine off first-quarter sales that topped Wall Street estimates.


American sprinter Natasha Hastings features in Under Armour's "Will Finds A Way" campaign - Instagram: @underarmour


The company’s shares, which initially rose 4 percent in premarket trading, dipped 6.5 percent after Under Armour forecast a loss of between 9 and 10 cents per share for the quarter ending June, bigger than the 6-cent loss expected by analysts, according to Thomson Reuters I/B/E/S.

Under Armour has been spending heavily on marketing in recent months as its North America business that is responsible for 73 percent of overall revenue cools down after years of double-digit growth.

The Baltimore-based company has signed endorsement deals with celebrities such as Dwayne “The Rock” Johnson and has aggressively promoted its new Bluetooth-connected HOVR running shoes.

The company also said selling, general and administrative expenses would rise at a low double-digit percentage rate in the second quarter.

International sales remained a bright spot for Under Armour, rising 27 percent in the three months ended March 31 and helping make up for flat sales at the North America division.

Still, the rapid international expansion has some analysts concerned about Under Armour’s inventory levels, which jumped 27 percent to $1.1 billion in the first quarter.

“The combination of high (accounts) receivables and elevated inventory levels looks like a ticking time bomb to us,” Susquehanna Financial Group’s Sam Poser said in a report.

Under Armour, which lists basketball star Steph Curry and tennis player Andy Murray among its biggest sporting sponsorship deals, faces brutal competition from Nike Inc. and Germany’s Adidas AG, and Puma in the United States, where the bankruptcies of U.S. sporting goods retailers have also weighed on sales.

The company’s loss widened to $30.2 million in the first quarter from $2.3 million a year earlier, hurt by restructuring costs of $37.5 million.

Excluding one-time items, Under Armour broke even on a per-share basis, while analysts had expected a loss of 5 cents per share.

Net revenue rose 5.9 percent to $1.19 billion, topping expectations of $1.12 billion.

© Thomson Reuters 2019 All rights reserved.