Sports Business/05/03/2018

Sports group Under Armour again struggles with red figures

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Under Armour had already recorded losses in the previous year. This will now be repeated in the first quarter. CEO Kevin Plank is encouraged by the success among the athletes abroad.

German Under-Armour-Testimonial Imke Salander.
German Under-Armour-Testimonial Imke Salander.

The American sporting goods company Under Armour continues to struggle with its sales. In the first quarter, sales in the domestic market stagnated, announced founder and CEO Kevin Plank. The company generates three-quarters of its total revenues in its US business.

To make matters worse, the company is again making losses. As in the previous year, Planks company is in the red, with a loss of 30 million euros for the first three months.

International sales increase by about a quarter

While the competition such as Adidas or Puma is continuously on the rise, Under Armour is currently lagging somewhat behind the other brands. However, Plank is encouraged by the fact that his sporting goods are becoming more and more popular internationally.

Foreign sales rose by about a quarter, which increased total sales by six percent to 1.2 billion dollars (about one billion euros). Under Armour equips, among others, the second division club FC St. Pauli in German football.


In February, hackers captured customer data

In 2018 Plank aims to grow at least in the single-digit percentage range. However, the operating profit would be modest.

A few weeks ago, Under Armour also had to contend with a data theft. The My Fitness Pal app, which the sporting goods manufacturer acquired in 2015, was hacked. The data theft occurred at the end of February, and it wasn't until the end of March that Under Armour discovered and released it.