How Under Armour Has Fared Through COVID-19
Under Armour (NYSE: UA)(NYSE: UAA) remains the underdog in athletic apparel and footwear sales. And while Americans love an underdog, hoping for a change is a risky strategy for stock market investors. The company, which was once a rising star in performance athletic wear, has been plagued with underperforming sales, the loss of its premium reputation, and an accounting fraud investigation. And that was before COVID-19.
Since Under Armour came into the pandemic already struggling, it was no surprise that its sales dropped 41% in the second quarter ended June 30, which covered most of the global lockdown. Most of that came from wholesale channels, which decreased 58%, while direct-to-consumer revenue fell a milder 13%. Net loss was $183 million. On a positive note, sales were better than the 50% to 60% decline management expected, and gross margin increased 280 basis points year over year to 49.3%.
Image source: Under Armour.
Source Fool.com
