E-commerce

Under Armour earnings healthy thanks to e-commerce activity

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August 3, 2020

Under Armour's second-quarter earnings reveal momentum thanks to e-commerce activity, but the athletic apparel seller projects a revenue dip ahead, ranging between 20% to 25% in the second half of the year.

The prime reason is the ongoing and resurgence of the COVID-19 pandemic across the U.S., according to a CNBC report.

The retailer reported revenue of $707.6 million, a healthy increase above the $543.8 million projected, and a loss per share of 31 cents compared to an expected 41 cents, according to the report.

"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," Chief Executive Patrik Frisk said in a statement.