Under Armour (NYSE:UAA) said Friday its fiscal second-quarter revenue fell 41%, but overall its results came in better than the retailer was expecting thanks to an e-commerce boost.
The sneaker maker estimated roughly 80% of stores where its merchandise can be purchased, including its own shops, were closed due to the coronavirus pandemic through mid-May.
Selling directly to customers made its sales more profitable and there was less of a drag from items being sold at off-price channels. As a result, its gross margins strengthened 280 basis points to 49.3%.
Loss per share registered at 31 cents, adjusted, versus a loss of 41 cents, expected. Revenues were $707.6 million versus the expected $543.8 million.
With stores reopening, the company said it was “encouraged” by the momentum it was seeing in June and July.
According to CEO Patrik Frisk, “However, we remain appropriately cautious with respect to the balance of 2020 due to continued uncertainty related to consumer shopping dynamics, the potential for a highly promotional environment and proactive decisions to reduce inventory purchases to be more aligned with anticipated demand related to ongoing COVID-19 impacts.”
Within that, apparel sales were down 42%, amounting to $426 million, while footwear revenue dropped 35% to $185 million, and accessories revenue fell 47% to $56 million.
Under Armour said it ended the quarter with cash and cash equivalents on hand of $1.1 billion.
UAA shares opened Friday down 59 cents, or 5.2%, to $10.86