Under Armour revenue to see double-digit growth by 2023

The first priority is a continued focus on elevating and protecting the Under Armour brand by taking actions to ensure the ability to consistently deliver what consumers, customers and shareholders expect from the company. Simultaneously, the second priority is performing with balance and working to create greater financial and operational agility across the company's portfolio of businesses to ensure future growth is repeatable and consistent.

For fiscal 2018, gross margin is now expected to be flat versus the previous expectation of 'flat to down slightly' versus 45.1 per cent in 2017. Adjusted gross margin is likely to improve 20 to 30 basis points compared to 45.2 per cent in 2017 as benefits from product costs and lower planned promotional activity are offset primarily by inventory management actions.

Operating loss is now expected to be approximately $40 to $55 million versus the previously expected $50 to 55 million loss. On an adjusted basis, operating income is now expected to reach the $160 to $165 million range versus the previous $150 to $165 million range.

"Under Armour is designed for resilience and over the past two years, our global team has worked tirelessly to transform our business - operationally, strategically and culturally," said Under Armour chairman and CEO Kevin Plank. "With a distinct strategy engineered around a clear, uniquely defined consumer supported by a disciplined go-to-market process and data-driven demand mapping, we have never been more inspired, aligned and capable of achieving our goals."

"As we execute against our long-term strategy, we remain unwavering in our commitment to protecting and growing the Under Armour brand," Plank continued. "Led by a strong management team, an accelerated innovation agenda and comprehensive discipline around our commitment to increasing total shareholder return, we look forward to delivering the next chapter in our growth story."

"Focusing on sustainable, profitable growth while increasing returns on capital and generating substantial cash will empower our ability to deliver industry-leading innovation, compelling premium consumer experiences and drive toward our targets, while steadily increasing returns to our shareholders," chief financial officer David Bergman said. (RR)

ALCHEMPro News Desk – India