On December 20th, a reporter from the New Beijing News and Shell Finance learned from the official website of Credit China that An De Armour Trading (Shanghai) Co., Ltd., an affiliated company of sports brand Under Armour, was fined more than 300000 yuan and confiscated illegal gains of more than 70000 yuan by the Huangpu District Market Supervision Administration of Shanghai for producing and selling substandard products that were passed off as qualified products.
Image/Screenshot of Credit China's official website
According to the punishment reasons, the parties involved ordered 1113 pieces of men's down clothing from Under Armour B.V., the overseas supply headquarters, in three batches. After testing, some products in the third batch were found to be of substandard quality. There are a total of 305 substandard products involved in the case, of which 296 have been sold. The purchase price of the involved product is 597.76 yuan per piece, and the hang tag price is 1999 yuan per piece. The actual sales price ranges from 805.28 yuan to 1499 yuan, with a total sales amount of over 270000 yuan and a profit of over 70000 yuan.
According to Tianyancha information, Ande Armour Trading (Shanghai) Co., Ltd. was established in 2010 and is a wholly-owned subsidiary of Under Armour Asia Limited.
According to the financial report for the second quarter of fiscal year 2024, the company's revenue remained unchanged from the same period last year, at $1.6 billion; The net profit was 110 million US dollars, a year-on-year increase of 26%. In terms of specific market performance, the revenue of the North American market, which accounts for about 63% of total sales, continues to decline. In the second fiscal quarter, sales in this market decreased by 2% year-on-year to 991 million yuan. In the international market, Andemar overall maintains a year-on-year growth trend of 5%, with EMEA (Middle East and Africa) market sales increasing by 9% year-on-year, Asia Pacific region sales increasing by 3% year-on-year, and Latin America sales decreasing by about 8% year-on-year.
At the same time as disclosing its second quarter results, Andemar lowered its 2024 fiscal year performance forecast, adjusting its previously "flat to slightly rising" revenue forecast to "expected to decrease by 2% to 4%.".