Under Armour, which sells merchandise to several U.S. department stores that were closed during the lockdowns, said gross margin rose 280 basis points to 49.3% in the reported quarter, helped by lower sales to off-price channels.
Under Armour Inc reported a smaller-than-expected quarterly loss on Friday, as it sold more merchandise online with customers staying at home during the coronavirus lockdowns, sending its shares up about 16% in premarket trading.
Under Armour, which sells merchandise to several U.S. department stores that were closed during the lockdowns, said gross margin rose 280 basis points to 49.3% in the reported quarter, helped by lower sales to off-price channels.
Even as stores were temporarily shut, activewear companies such as Under Armour have been able to benefit from demand for home workout apparel and equipment as people alter their exercising schedules during the lockdowns.
“While we performed better than expected, we still experienced a significant decline in revenue across all markets,” Chief Executive Officer Patrik Frisk said.
Net revenue fell about 41% to $707.6 million in the second quarter ended June 30, compared with estimates of $558.5 million, according to IBES data from Refinitiv.
Under Armour reported a bigger net loss of $182.9 million, or 40 cents per share, in the quarter, compared with a loss of $17.3 million, or 4 cents per share, a year earlier.
The company took a restructuring charge of $39 million in the second quarter.
On an adjusted basis, Under Armour lost 31 cents per share, compared to analysts’ estimates of 41 cents.
