Under Armour Posts Surprise Profit on Easing Cost Pressures
August 9, 2023
Reuters
Sportswear maker Under Armour reported a surprise first-quarter profit and exceeded sales expectations due to reduced cost pressures and increased discounts that boosted demand for its clothing and footwear. The company’s gross margins fell to 46.1% as it offered steep discounts to clear inventories and attract budget-conscious consumers amid inflation concerns. While the company’s North American revenue fell by 9.1%, its Asia-Pacific sales increased by 14.5%, and it maintained its revenue and profit outlook for the fiscal year 2024.
Recent News
-
Brands Embrace AI to Revolutionize Customer Experience
In a bid to enhance customer interactions and reduce the drawbacks of live customer service, brands are turning to AI solutions, from chatbots to innovative food delivery robots. Home Chef, a meal-kit-delivery service, employs the virtual assistant Herb to streamline…
-
Tesla’s Growth Slowdown Sends Warning Signals to Electric Vehicle Industry
Morgan Stanley analyst Adam Jonas suggests that Tesla’s recent tempered growth expectations indicate potential challenges for the broader electric vehicle (EV) industry. Following Tesla’s disappointing third-quarter results and cautious earnings call, Jonas believes there’s a ripple effect across the EV…
-
Housing Market Faces Continued Affordability Crisis as Mortgage Rates Near 8%
The housing market in the United States is witnessing its most challenging phase in years, with mortgage rates inching toward 8% and prices soaring for three consecutive months. Data reveals that September experienced the lowest housing sales in 13 years….
-
Elon Musk’s X Plans New Paid Subscriptions Amid Reports of Declining Web Traffic
Elon Musk’s X is set to introduce two new subscription tiers despite reports of a significant decline in web traffic. The Tesla CEO shared on X that one tier would be lower cost with all features but no ad reduction,…