Under Armour’s Spanish Market Heats Up: Profits Soar, Sales Up 31%

Under Armour swims against the tide in Spain. While in the world as a whole the company suffers a slowdown in sales and launches a shock plan after the reinstatement of its founder to the front line, in Spain the sports equipment company boosts its business. Under Armour ended the last fiscal year with a growth of more than 30% and a fivefold increase in net income.

According to the accounts that Under Armour has just filed with the Mercantile Registry, corresponding to the year ended March 2024, the Spanish subsidiary of the Baltimore-based company achieved a turnover of €27.3 million, which represents a growth of 31.13% over the previous year.

The company attributes this “significant” increase to the “good performance of the business, accompanied by new store openings during the year”. “The foreseeable future evolution of the company is to continue this positive trend by increasing sales in the different current stores and increasing them to increase its presence in Spain,“ the company points out in its accounts.

Under Armour attributes its growth in Spain to the increase in its distribution network

Under Armour’s Spanish subsidiary has managed to significantly increase its profitability. At the end of the last year for which figures are available, the company recorded an operating profit of €800,090, three times higher than twelve months earlier, when it posted €239,576.

Net income, on the other hand, increased fivefold in the last fiscal year, from €99,775 to €507,715. A year earlier, Under Armour’s Spanish subsidiary had left the red numbers behind.

In Spain, where it combines distribution in the multi-brand channel with a small network of its own stores, Under Armour had an average workforce of 164 employees in the last fiscal year, a large part of it corresponding to point-of-sale personnel.

The group established a subsidiary in Spain in 2016. Previously, the company operated in the country through distributor Alnisa Sports, which went into liquidation after losing its contract with the U.S. company.

In 2020, the company took a step back in Spain with the closure of its offices in Barcelona. Under Armour’s Spanish and Portuguese market is currently led by Marc Colomer, who holds the position of sales manager for the two countries.