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Where to start? On the one hand, Under Armour did deliver increases in revenue and sales, which is pretty good considering the overall apparel market, but nowhere near what it has delivered in the past and at a time when athleisure continues to enjoy its moment in the sun. Revenue for the fourth quarter ending Dec. 31 increased 12% to $1.31 billion, but analysts had expected $1.41 billion and this was the slowest growth in eight years. Under Armour is forecasting that revenue in 2017 will near $5.4 billion, which is an increase of 11-12%, but this is disappointing given analysts that had pegged the number at $6.05 billion. Chief Executive Officer Kevin Plank said, "Numerous challenges and disruptions in North American retail tempered our fourth quarter results." One Under Armour's greatest challenges was the disruption in the retail environment. The Sports Authority and Sport Chalet bankruptcies certainly shook the industry, with the greatest impact hitting in the fourth quarter, when both retailers were fighting for their survival," said Matt Powell, sports industry analyst at The NPD Group. "It is likely that we will still see the impact continue through Q1, but after that the drag should be over and trend should return to normal, Gross margins fell to 44.8% from 48% as the company sold more shoes, but shoes are less profitable for Under Armour. Footwear revenues increased 36% to $228 million, driven by growth in running and basketball shoes.
(Reuters) - North Carolina is close to losing NCAA championship events for six years at a cost of more than $250 million because of a law that restricts bathroom access for transgender people, a local sports official told state lawmakers on Monday. The governing body for U.S. college athletics is reviewing bids to host events through spring 2022, including 133 from North Carolina cities and universities, said Scott Dupree, executive director of the Greater Raleigh Sports Alliance. The law known as House Bill 2, which bars transgender people from using government-run restrooms that match their gender identity and limits local nondiscrimination protections, will doom the state's chances, Dupree wrote in a letter. "Our contacts at the NCAA tell us that, due to their stance on HB 2, all North Carolina bids will be pulled from the review process and removed from consideration," said Dupree, adding he was sharing the information on behalf of the North Carolina Sports Association. Asked for comment, the NCAA said it expects to announce its site selections for upcoming seasons in April. The organization in September moved championship events, including two rounds of the prominent Division I men's basketball tournament, from the hoops-loving state for the current academic year in protest at the measure. "In a matter of days, our states sports tourism industry will suffer crushing, long-term losses and will essentially close its doors to NCAA business," Dupree said. "Our window to act is closing rapidly." Adopted last March by North Carolina's Republican-controlled legislature, the law prompted legal challenges, boycotts by corporations and entertainers, and the relocation of the National Basketball Association's 2017 All-Star Game.
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