Athletic performance apparel brand Under Armour has reported its net income declined by 38% to $232.04m in fiscal 2024 (FY 2024) from $374.45m in fiscal 2023 (FY 2023).

The company’s adjusted net income stood at $245m, and its diluted earnings per share also declined to $0.52, compared to $0.81 in fiscal 2023.

For the year ending 31 March, Under Armour’s revenue reached $5.7bn, marking a 3.4% decrease from $5.9bn a year earlier.

Revenue in North America dropped by 8.3% to $3.5bn while international revenue rose by 8% to $2.2bn over the fiscal.

The retailer’s direct-to-consumer segment showed resilience, with a 3% increase in revenue to $2.3bn.

This growth was attributed to a 5% rise in owned and operated store revenue and a 1% uptick in e-commerce revenue, which now represents 41% of the direct-to-consumer business. 

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Despite the revenue challenges, Under Armour’s gross profit remained relatively stable at $2.63bn in FY 2024, compared to $2.64bn in the previous year.  

The company’s gross margin improved by 130 basis points to 46.1%, largely due to supply chain efficiencies that reduced freight and product costs. 

Under Armour’s board of directors has approved a restructuring plan to boost its financial and operational efficiencies.  

The restructuring is expected to cost the company between $70m and $90m. 

Under Armour president and CEO Kevin Plank said: “Amid a challenging retail environment in fiscal 2024 that included high inventories and a consistent drumbeat of promotions – we demonstrated disciplined expense control and delivered results that were aligned with our previous outlook. We also maintained a strong balance sheet, closing the year with a solid cash position and healthy inventory levels.” 

Looking ahead to fiscal 2025, Under Armour anticipates operating income to be between $50m and $70m, with diluted earnings per share expected to range from $0.02 to $0.05.  

The company also expects revenue to decline at a low-double-digit percentage rate.