Under Armour is to open three brand stores in the UK in coming months in response to growing demand.
Thee three new stores are part of the brand’s strategy to strengthen its direct-to-consumer sales channel both in the UK and the wider EMEA (Europe, Middle East and Africa) region. The region is currently the area where Under Armour’s sales are growing quickly. EMEA revenues at the end of its latest financial year were 60% higher than before the Covid-19 pandemic.
The news “marks the beginning of an exciting next chapter for Under Armour in the UK,” says Kara Trent, managing director EMEA at Under Armour. “Responding to a rapid growth in both consumer demand and sales, we’re delighted to announce the opening of a series of retail stores in some of the most iconic retail locations in the country. This direct-to-consumer approach will enhance our holistic market approach – which includes our important wholesale partners – and further strengthen Under Armour’s consumer experience.
“We support athletes to become better, and find that grit, determination, and hard work lead to true success. This move is only the beginning of our commitment and investment in the EMEA region, and we’re looking forward to continuing this incredible journey in the coming years.”
Two of Under Armour’s new stores will open this month – at Liverpool ONE and Battersea Power Station – while a third, at Stratford Westfield, will open in March. They will all use the brand’s new city concept store, previously launched in Amsterdam, where its EMEA headquarters are based, in October 2022. In its Battersea Power Station store, for example, there will be a performance centre facility where athletes can get training, assessments and advice from members of the UA Athlete Performance Team.
The Baltimore-based brand this week reported revenues of $1.6bn (£1.3bn) in the third quarter of its financial year, to December 31 2022. That’s 3.4% up on the same time a year earlier. Wholesale revenue grew by 6.8% to $820m (£676.9m), while direct-to-consumer revenues fell by 0.7% to $715m (£590.3m). A 6% decline in own-store revenues was partly offset by a 7% rise in direct ecommerce revenues. Ecommerce accounted for 45% of direct to consumer sales in the quarter.
By region, North America revenue fell 2% to $1bn (£0.83bn), while international revenues were 14% up at $527m (£435.1m), with stronger growth in EMEA (+32%) and Latin America (+45%), and a decline in Asia Pacific (-9%).
Net income came in 7.7% higher at $122m (£100.7m) – or $76m (£62.7m) when one-off costs including a $45m (£37.1m) gain from the sale of MyFitnessPal were excluded.
Under Armour is ranked Top250 in RXUK Top500 research.
