Profitability Ahead of Outlook
Under Armour achieved a $50 million second quarter adjusted operating income beat compared to the outlook provided in August.
Gross Margin Improvement
The second quarter gross margin increased by 200 basis points to 49.8%, driven by supply chain benefits, favorable channel mix, and pricing benefits.
Reduction in Promotional Activities
Significant reduction in promotional activities led to a higher quality of revenue, with full price sales now representing about 50% of e-commerce revenue.
Strategic Marketing Investments
Under Armour plans to invest half of its Q2 income beat in marketing and brand-building efforts, with a significant marketing effort planned for 2025.