US-based sports apparel brand Under Armour has generated $1.3bn in revenue for the first quarter (Q1) of the fiscal year 2023 (FY23), up by 2% on a currency-neutral basis from a year earlier.

The company’s Wholesale revenue for the three months to 30 June increased by 3% to $792m, while direct-to-consumer and e-commerce revenues declined by 7% and 6% respectively.

Under Armour‘s North American business saw a 1% revenue growth on a currency-neutral basis at $909m.

The retailer’s revenue dropped by 3% to $431m, affected by a 1% decline in Europe, the Middle East and Africa (EMEA) and 8% decline in Asia-Pacific (APAC).

Its Q1 gross margin dropped by 280 basis points to 46.7% from the same period of the prior year.

Under Armour’s operating income was $34m and its adjusted operating income was $44m during the quarter, while its net income was $8m.

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The company’s diluted earnings per share (EPS) were $0.02 in Q2 2023, down from $0.13 in the prior-year period, while its adjusted EPS was $0.03.

Under Armour has kept its projected revenue growth for FY23 unchanged at 5-7%, while its currency-neutral revenue is expected to grow by between 7% and 9%.

The company expects its gross margin to decline by 375-425 basis points from the previous expectation of a 150-200 decline.

Under Armour interim president and CEO Colin Browne said: “We delivered our quarter, are holding our full-year revenue outlook, and remain bullish on our brand strength while we navigate the current environment.

“Our relentless approach of delivering ground-breaking innovation will continue to manifest through 2022 and beyond as we work to unleash the full potential of the Under Armour brand.

“Moving forward, we are digging in to amplify the strengths of our core strategy while creating additional opportunities for athletes to wear UA throughout their day.”