The more than expected currency volatility has hurt Under Armour Inc (NYSE:UA) badly. As per the reports, the earnings of the athletic gear and cloth maker have fallen by 13%. The company is on a lookout for global expansion. Its international business proceedings and overall sales figures have been growing swiftly, but the profit dropped due to increased cost of digital acquisitions and volatile currency effects.
What’s In Store:
Recently, it was declared the number two sportswear maker in the U.S. on the basis of retail sales. The company has a lot in store for the entire fitness freaks and sports lover. Now, they cannot only find a new signature basketball shoe, but also try the newly launched fitness business. Even though Under Armour is doing perfectly fine at the moment, senior management of the company feels that there is a scope for more. As per the reports, Kevin Plank, Chief Executive Officer, Under Armour, states that the company has to perform better when it comes to merchandising the complex products.
Under Armour used to sell tight T-Shirts under sportswear category in the past. The company made a lot of money by doing this, but things have changed now. Every other company has adapted to this innovative concept; hence, it’s not as easy for the company to generate continuous profit. It has become more complex to sell the diverse range now. Things have become difficult, but Under Armour has to perform seamlessly well to maintain its leadership position in the market.
Its sales increased to $804.9 million in the previous quarter ended March 31, 2015. It was 25% more than previous year’s performance during the same period. While footwear business increased by 41%, the core apparel business of the company surged by 21%. Even after a great show in sales, company’s profit dropped by 13% to $11.7 million.
