An increase in wholesale revenue helped Under Armour increase total company sales 3% year over year to $1.58 billion in its fiscal third quarter, which concluded Dec. 31, 2022. 

The Baltimore-based maker of athleticwear, footwear and accessories, whose goods sell in the promotional products industry, also increased net income – from $109.6 million, or $0.23 per share, in last year’s Q3 to $121.61 million, or $0.27 per share, in the recently ended quarter.

Operating income was nearly $95 million, up from about $86 million in the year-before Q3.

Under Armour’s wholesale revenue jumped 7% to $820 million. More broadly, a 2% decline in apparel, which accounts for the majority of Under Armour’s sales, was offset by a 25% increase in footwear revenue.

International revenue was key to the quarterly sales jump. North America sales were down 2% but international revenue rose 14% to $527 million.

Like other retailers, Under Armour has what some analysts have described as an “inventory glut,” but interim CEO Colin Browne said the firm is “reasonably happy” with stock levels.

Inventory is up about 50%, but that’s compared to a time of below-normal stock that occurred amid supply chain disruption that delayed replenishment in 2021 – something importers in many industries, including the promotional products market, dealt with that year.

“When you actually look at the amount of inventory we’re now holding, we’re holding the right level of inventory for a $6 billion business,” Browne said on an earnings update call with investors. “Our inventory is right sized for the way in which we expect our business to kind of evolve next year.”

For the full fiscal 2023 year, Under Armour is projecting diluted earnings per share of $0.71 to $0.75. 

In December, Under Armour announced that longtime Marriot International executive Stephanie Linnartz will begin as the company’s CEO/president effective Feb. 27, 2023. Browne will return to his previous position of chief operating officer.