UNDER ARMOUR REPORTS FIRST QUARTER 2025 RESULTS; UPDATES FISCAL 2025 OUTLOOK
Under Armour (NYSE: UA, UAA) reported Q1 fiscal 2025 results, with revenue down 10% to $1.2 billion. The company saw declines across regions and categories, with North America revenue down 14% and international revenue down 2%. Gross margin improved by 110 basis points to 47.5%, driven by lower discounting and product costs. However, the company reported an operating loss of $300 million, largely due to a litigation reserve.
Under Armour updated its fiscal 2025 outlook, expecting revenue to decline at a low double-digit percentage rate. The company anticipates a gross margin improvement of 75 to 100 basis points and projects an adjusted operating income of $140 to $160 million. Under Armour also announced a $500 million stock repurchase plan, with $40 million already executed in Q1.
Under Armour (NYSE: UA, UAA) ha riportato i risultati del primo trimestre fiscale 2025, con un fatturato in calo del 10% a 1,2 miliardi di dollari. L'azienda ha registrato denunce in tutte le regioni e categorie, con il fatturato del Nord America in diminuzione del 14% e il fatturato internazionale in calo del 2%. Il margine lordo è migliorato di 110 punti base, raggiungendo il 47,5%, grazie a minori sconti e costi di prodotto. Tuttavia, l'azienda ha riportato una perdita operativa di 300 milioni di dollari, principalmente a causa di un accantonamento per contenziosi.
Under Armour ha aggiornato le previsioni fiscali per il 2025, prevedendo una diminuzione del fatturato a un tasso percentuale a due cifre basse. L'azienda prevede un miglioramento del margine lordo di 75-100 punti base e stima un reddito operativo rettificato compreso tra 140 e 160 milioni di dollari. Inoltre, Under Armour ha annunciato un programma di riacquisto di azioni da 500 milioni di dollari, con 40 milioni già eseguiti nel primo trimestre.
Under Armour (NYSE: UA, UAA) reportó resultados del primer trimestre fiscal 2025, con ingresos a la baja del 10% a 1.2 mil millones de dólares. La compañía observó caídas en todas las regiones y categorías, con ingresos en América del Norte cayendo un 14% y los ingresos internacionales en baja del 2%. El margen bruto mejoró en 110 puntos básicos alcanzando el 47.5%, impulsado por menores descuentos y costos de productos. Sin embargo, la compañía reportó una pérdida operativa de 300 millones de dólares, principalmente debido a una reserva por litigios.
Under Armour actualizó su perspectiva fiscal 2025, esperando una disminución de ingresos a una tasa porcentual de un dígito bajo. La compañía anticipa una mejora en el margen bruto de 75 a 100 puntos básicos y proyecta un ingreso operativo ajustado de 140 a 160 millones de dólares. Under Armour también anunció un plan de recompra de acciones de 500 millones de dólares, con 40 millones ya ejecutados en el primer trimestre.
언더 아머(NYSE: UA, UAA)는 2025 회계년도 1분기 실적을 발표하며 수익이 10% 감소해 12억 달러에 이르렀습니다. 이 회사는 모든 지역과 카테고리에서 감소를 겪었으며, 북미 수익이 14% 감소하고 국제 수익은 2% 감소했습니다. 총 이익률은 110베이시스 포인트 개선되어 47.5%에 달했습니다, 이는 할인 및 제품 비용 감소에 의해 추진되었습니다. 그러나 이 회사는 3억 달러의 운영 손실을 기록했습니다, 주로 소송 준비금 때문입니다.
언더 아머는 2025 회계연도 전망을 업데이트하며 수익이 저비율의 두 자리 수로 감소할 것으로 예상하고 있습니다. 회사는 총 이익률이 75에서 100 베이시스 포인트 개선될 것으로 예상하고 조정된 운영 소득이 1억 4천만에서 1억 6천만 달러에 이를 것으로 예상합니다. 언더 아머는 또한 5억 달러 규모의 자사주 매입 계획을 발표하며, 그 중 4천만 달러는 이미 1분기에 실행되었습니다.
Under Armour (NYSE: UA, UAA) a publié les résultats du premier trimestre fiscal 2025, avec des revenus en baisse de 10% à 1,2 milliard de dollars. L'entreprise a connu des baisses dans toutes les régions et catégories, avec des revenus en Amérique du Nord en baisse de 14% et des revenus internationaux en baisse de 2%. La marge brute s'est améliorée de 110 points de base pour atteindre 47,5%, grâce à des remises plus faibles et à des coûts de produit réduits. Cependant, l'entreprise a enregistré une perte d'exploitation de 300 millions de dollars, principalement en raison d'une réserve pour litiges.
Under Armour a mis à jour ses prévisions pour l'exercice 2025, s'attendant à une baisse des revenus à un taux de pourcentage à un chiffre bas. L'entreprise prévoit une amélioration de la marge brute de 75 à 100 points de base et projette un revenu d'exploitation ajusté compris entre 140 et 160 millions de dollars. Under Armour a également annoncé un plan de rachat d'actions de 500 millions de dollars, dont 40 millions ont déjà été exécutés au premier trimestre.
Under Armour (NYSE: UA, UAA) hat die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 veröffentlicht, mit einem Rückgang des Umsatzes um 10% auf 1,2 Milliarden Dollar. Das Unternehmen verzeichnete Rückgänge in allen Regionen und Kategorien, wobei der Umsatz in Nordamerika um 14% zurückging und der internationale Umsatz um 2% sank. Die Bruttomarge verbesserte sich um 110 Basispunkte auf 47,5%, was auf niedrigere Rabatte und Produktkosten zurückzuführen ist. Das Unternehmen berichtete jedoch von einem operativen Verlust von 300 Millionen Dollar, hauptsächlich aufgrund einer Rückstellung für rechtliche Auseinandersetzungen.
Under Armour hat seine Prognose für das Geschäftsjahr 2025 aktualisiert und erwartet, dass der Umsatz mit einer niedrigen zweistelligen Prozentzahl zurückgehen wird. Das Unternehmen rechnet mit einer Verbesserung der Bruttomarge um 75 bis 100 Basispunkte und prognostiziert ein bereinigtes operatives Ergebnis von 140 bis 160 Millionen Dollar. Außerdem kündigte Under Armour einen Aktienrückkaufplan über 500 Millionen Dollar an, von dem bereits 40 Millionen Dollar im ersten Quartal umgesetzt wurden.
- Gross margin increased 110 basis points to 47.5%
- Adjusted operating income of $8 million, excluding transformation expenses and other charges
- Inventory reduced by 15% to $1.1 billion
- Initiated $500 million stock repurchase plan
- Updated fiscal 2025 outlook with improved adjusted operating income projection
- Revenue down 10% to $1.2 billion
- North America revenue decreased 14% to $709 million
- Operating loss of $300 million due to litigation reserve
- eCommerce revenue decreased 25%
- Expects revenue to decline at a low double-digit percentage rate in fiscal 2025
Insights
Under Armour's Q1 FY2025 results paint a mixed picture. The
The company's focus on reducing promotional activities is a double-edged sword. While it's boosting margins, it's also contributing to the
The updated FY2025 outlook suggests continued challenges, with expected revenue decline in the low double-digits. However, the projected gross margin improvement and adjusted operating income increase show potential for profitability gains. Investors should monitor the effectiveness of the restructuring plan and brand repositioning efforts.
Under Armour's Q1 results reflect broader industry trends and challenges. The
The planned reduction in promotional activities, while impacting short-term sales, aligns with a broader industry shift towards premiumization. This strategy could help Under Armour differentiate itself in a crowded market, but execution will be crucial. The company's focus on strengthening its connection with athletes could be a key differentiator, potentially leading to increased brand loyalty and higher-value customers over time.
Investors should closely monitor Under Armour's ability to navigate the challenging retail environment and execute its brand elevation strategy effectively.
The litigation reserve of
Investors should seek clarity on the nature of this litigation and its potential long-term implications for Under Armour. Legal issues of this scale can have lasting effects on a company's reputation and financial health. The company's ability to resolve this matter efficiently and without further financial impact will be crucial.
On a positive note, the $500 million stock repurchase plan authorized in May 2024 demonstrates confidence in the company's long-term prospects. However, balancing share buybacks with the need for potential legal settlements and operational investments will require careful financial management.
"We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations," said Under Armour President and CEO Kevin Plank. "Our renewed energy and alignment are proving to be critical enablers as we work to deliver superior products and storytelling while driving efficiencies, reducing promotional activity, and complexity."
Plank continued, "With the strongest product organization we've had in many years and strengthened brand leadership, we're confident in our ability to elevate our design and innovation over the coming seasons and amplify our unique connection with athletes as their brand of choice."
First Quarter Fiscal 2025 Review
- Revenue was down 10 percent to
(down 10 percent currency neutral).$1.2 billion North America revenue decreased 14 percent to , and international revenue decreased 2 percent to$709 million (down 2 percent currency neutral). In the international business, revenue in EMEA was flat (flat currency neutral), down 10 percent in$473 million Asia-Pacific (down 7 percent currency neutral), and up 16 percent inLatin America (up 12 percent currency neutral).- Wholesale revenue decreased 8 percent to
, and direct-to-consumer revenue was down 12 percent to$681 million . Owned and operated store revenue declined 3 percent. Because of planned decreases in promotional activities, eCommerce revenue decreased 25 percent, representing 34 percent of the total direct-to-consumer business for the quarter.$480 million - Apparel revenue decreased 8 percent to
, footwear revenue was down 15 percent to$758 million , and accessories revenue was down 5 percent to$310 million .$93 million
- Gross margin increased 110 basis points to 47.5 percent, driven primarily by lower levels of discounting in the direct-to-consumer business and lower product costs. This was partially offset by unfavorable foreign currency impacts, channel and regional mix, and headwinds due to the timing of prior year supply chain benefits.
- Due to a litigation reserve, selling, general, and administrative expenses were up 42 percent to
. Adjusted selling, general, and administrative expenses were down 6 percent to$837 million , which excludes$555 million of litigation reserve expense, net of a related$274 million insurance receivable, and approximately$60 million of transformation expenses related to our Fiscal 25 restructuring program.$9 million - Restructuring charges were
.$25 million - Operating loss was
. Excluding transformation expenses and other charges totaling$300 million , adjusted operating income was$308 million .$8 million - Net loss was
. Adjusted net income was$305 million .$4 million - Diluted loss per share was
. Adjusted diluted earnings per share was$0.70 .$0.01 - Inventory was down 15 percent to
.$1.1 billion - At the end of the quarter, cash and cash equivalents were
, and no borrowings were outstanding under the company's$885 million revolving credit facility.$1.1 billion
Share Buyback Program
In May 2024, Under Armour announced that its Board of Directors authorized a
Fiscal 2025 Restructuring Plan
In May 2024, Under Armour announced a restructuring plan designed to strengthen and support the company's financial and operational efficiencies. Of the estimated
Updated Fiscal 2025 Outlook
Key points related to Under Armour's fiscal 2025 outlook include:
- Revenue is expected to be down at a low double-digit percentage rate. This includes an expected 14 to 16 percent decline (previously a 15 to 17 percent decline) in
North America as the company works to reset this business meaningfully and a low-single-digit percent decline in its international business, including flat results in EMEA offset by a high-single-digit decline in itsAsia-Pacific business due to developing macroeconomic pressures. - Gross margin is expected to be up 75 to 100 basis points compared to the prior year, driven by a material reduction in promotional and discounting activities in the company's direct-to-consumer business and product costing benefits. This is expected to be partially offset by emerging headwinds from higher ocean freight costs, unfavorable impacts from changes in foreign currency, and unfavorable channel mix.
- Selling, general, and administrative expenses are expected to be up at a mid-to-high-single digit percent rate due to litigation expenses. Adjusted selling, general, and administrative expenses are expected to be down at a low-to-mid-single digit rate.
- Operating loss is expected to be
to$194 . Excluding the mid-point of anticipated restructuring charges and the litigation reserve expense, adjusted operating income is expected to be$214 million to$140 versus the previous expectation of$160 million to$130 .$150 million - Diluted loss per share is expected to be between
and$0.53 , and adjusted diluted earnings per share are expected to be between$0.56 and$0.19 .$0.22 - Capital expenditures are expected to be between
to$200 .$220 million
Conference Call and Webcast
Under Armour will hold its first quarter fiscal 2025 conference call today at approximately 8:30 a.m. Eastern Time. The call will be webcast live at https://about.underarmour.com/investor-relations/financials and will be archived and available for replay about three hours after the live event.
Non-GAAP Financial Information
This press release refers to "currency-neutral" and "adjusted" results, as well as "adjusted" forward-looking estimates of the company's results for its 2025 fiscal year ending March 31, 2025. Management believes this information is helpful to investors in comparing the company's results of operations period-over-period because it enhances visibility into its actual underlying results, excluding these impacts. Currency-neutral financial information is calculated to exclude changes in foreign currency exchange rates. References to adjusted financial measures exclude the company's litigation reserve expense, any gain or loss in connection with the sale of the MyFitnessPal platform, and the impact of the company's fiscal year 2025 restructuring plan and related charges and related tax effects. Management believes these adjustments are not core to the company's operations. The reconciliation of non-GAAP amounts to the most directly comparable financial measure calculated according to GAAP is presented in supplemental financial information furnished with this release. All per-share amounts are reported on a diluted basis. These supplemental non-GAAP financial measures should not be considered in isolation. They should be contemplated in addition to, and not as an alternative to, the company's reported results prepared per GAAP. Additionally, the company's non-GAAP financial information may not be comparable to similarly titled measures reported by other companies.
About Under Armour, Inc.
Under Armour, Inc., headquartered in
Forward-Looking Statements
Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, such as statements regarding our share repurchase program, our future financial condition or results of operations, our prospects and strategies for future growth, potential restructuring efforts, including the scope of these restructuring efforts and the amount of potential charges and costs, the timing of these measures and the anticipated benefits of our restructuring plans, expectations regarding promotional activities, freight, product cost pressures, and foreign currency impacts, the impact of global economic conditions and inflation on our results of operations, our liquidity and use of capital resources, the development and introduction of new products, the implementation of our marketing and branding strategies, the future benefits and opportunities from significant investments, and the impact of litigation or other proceedings. In many cases, you can identify forward-looking statements by terms such as "may," "will," "could," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "outlook," "potential" or the negative of these terms or other comparable terminology. The forward-looking statements in this press release reflect our current views about future events. They are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, activity levels, performance, or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by these forward-looking statements, including, but not limited to: changes in general economic or market conditions, including increasing inflation, that could affect overall consumer spending or our industry; increased competition causing us to lose market share or reduce the prices of our products or to increase our marketing efforts significantly; fluctuations in the costs of raw materials and commodities we use in our products and our supply chain (including labor); our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business; changes to the financial health of our customers; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer shopping and engagement preferences and consumer demand for our products and manage our inventory in response to changing demands; our ability to successfully execute any potential restructuring plans and realize their expected benefits; loss of key customers, suppliers or manufacturers; our ability to further expand our business globally and to drive brand awareness and consumer acceptance of our products in other countries; our ability to manage the increasingly complex operations of our global business; the impact of global events beyond our control, including military conflicts; the impact of global or regional public health emergencies on our industry and our business, financial condition and results of operations, including impacts on the global supply chain; our ability to successfully manage or realize expected results from significant transactions and investments; our ability to effectively market and maintain a positive brand image; our ability to attract key talent and retain the services of our senior management and other key employees; our ability to effectively meet regulatory requirements and stakeholder expectations with respect to sustainability and social matters; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; any disruptions, delays or deficiencies in the design, implementation or application of our global operating and financial reporting information technology system; our ability to access capital and financing required to manage our business on terms acceptable to us; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; risks related to foreign currency exchange rate fluctuations; our ability to comply with existing trade and other regulations, and the potential impact of new trade, tariff and tax regulations on our profitability; risks related to data security or privacy breaches; and our potential exposure to and the financial impact of litigation and other proceedings. The forward-looking statements here reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect unanticipated events.
As previously disclosed, during Fiscal 2024, we identified and corrected certain accounting errors, primarily related to cost of goods sold and selling, general and administrative expenses on the Consolidated Statement of Operations, as well as corresponding impacts to our other Consolidated Financial Statements. The impacts of these revisions were not material to our previously filed financial statements. Information presented in the tables below for the three months ended June 30, 2023, has been revised to reflect these corrections. See Note 1 to the Company's Condensed Consolidated Financial Statements included in Part I, Item 1 of the Company's Quarterly Report on Form 10-Q for the three months ended June 30, 2024, to be filed with the Securities and Exchange Commission.
Under Armour, Inc. For the Three Months Ended June 30, 2024, and 2023 (Unaudited; in thousands, except per share amounts)
| |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION
| |||||||
Three Months Ended June 30, | |||||||
in '000s | 2024 | % of Net | 2023 | % of Net | |||
Net revenues | $ 1,183,665 | 100.0 % | $ 1,316,965 | 100.0 % | |||
Cost of goods sold | 620,990 | 52.5 % | 705,470 | 53.6 % | |||
Gross profit | 562,675 | 47.5 % | 611,495 | 46.4 % | |||
Selling, general and administrative expenses | 837,317 | 70.7 % | 589,072 | 44.7 % | |||
Restructuring charges | 25,086 | 2.1 % | — | — % | |||
Income (loss) from operations | (299,728) | (25.3) % | 22,423 | 1.7 % | |||
Interest income (expense), net | 2,344 | 0.2 % | (1,626) | (0.1) % | |||
Other income (expense), net | (2,730) | (0.2) % | (6,060) | (0.5) % | |||
Income (loss) before income taxes | (300,114) | (25.4) % | 14,737 | 1.1 % | |||
Income tax expense (benefit) | 5,149 | 0.4 % | 4,328 | 0.3 % | |||
Income (loss) from equity method investments | (163) | — % | (399) | — % | |||
Net income (loss) | $ (305,426) | (25.8) % | $ 10,010 | 0.8 % | |||
Basic net income (loss) per share of Class A, B and C common stock | $ (0.70) | $ 0.02 | |||||
Diluted net income (loss) per share of Class A, B and C common stock | $ (0.70) | $ 0.02 | |||||
Weighted average common shares outstanding Class A, B and C common stock | |||||||
Basic | 435,693 | 444,872 | |||||
Diluted | 435,693 | 454,506 |
Under Armour, Inc. For the Three Months Ended June 30, 2024, and 2023 (Unaudited; in thousands)
NET REVENUES BY SEGMENT | |||||
Three Months Ended June 30, | |||||
in '000s | 2024 | 2023 | % Change | ||
$ 709,260 | $ 826,605 | (14.2) % | |||
EMEA | 226,892 | 226,641 | 0.1 % | ||
181,836 | 202,232 | (10.1) % | |||
64,409 | 55,739 | 15.6 % | |||
Corporate Other (1) | 1,268 | 5,748 | (77.9) % | ||
Total net revenues | $ 1,183,665 | $ 1,316,965 | (10.1) % | ||
NET REVENUES BY DISTRIBUTION CHANNEL | |||||
Three Months Ended June 30, | |||||
in '000s | 2024 | 2023 | % Change | ||
Wholesale | $ 680,513 | $ 741,958 | (8.3) % | ||
Direct-to-consumer | 480,213 | 544,187 | (11.8) % | ||
Net Sales | 1,160,726 | 1,286,145 | (9.8) % | ||
License revenues | 21,671 | 25,072 | (13.6) % | ||
Corporate Other (1) | 1,268 | 5,748 | (77.9) % | ||
Total net revenues | $ 1,183,665 | $ 1,316,965 | (10.1) % | ||
NET REVENUES BY PRODUCT CATEGORY | |||||
Three Months Ended June 30, | |||||
in '000s | 2024 | 2023 | % Change | ||
Apparel | $ 757,792 | $ 824,613 | (8.1) % | ||
Footwear | 310,389 | 363,670 | (14.7) % | ||
Accessories | 92,545 | 97,862 | (5.4) % | ||
Net Sales | 1,160,726 | 1,286,145 | (9.8) % | ||
Licensing revenues | 21,671 | 25,072 | (13.6) % | ||
Corporate Other (1) | 1,268 | 5,748 | (77.9) % | ||
Total net revenues | $ 1,183,665 | $ 1,316,965 | (10.1) % |
(1) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the Company's operating segments but managed through the Company's central foreign exchange risk management program, subscription revenues from the Company's MapMyRun and MapMyRide platforms (collectively "MMR", and revenue from other digital business opportunities. |
Under Armour, Inc. For the Three Months Ended June 30, 2024, and 2023 (Unaudited; in thousands)
INCOME (LOSS) FROM OPERATIONS BY SEGMENT | |||||
Three Months Ended June 30, | |||||
in '000s | 2024 | % of Net | 2023 | % of Net | |
$ 147,889 | 20.9 % | $ 160,714 | 19.4 % | ||
EMEA | 20,456 | 9.0 % | 29,779 | 13.1 % | |
9,935 | 5.5 % | 15,398 | 7.6 % | ||
15,171 | 23.6 % | 5,777 | 10.4 % | ||
Corporate Other (2) | (493,179) | NM | (189,245) | NM | |
Income (loss) from operations | $ (299,728) | (25.3) % | $ 22,423 | 1.7 % |
(1) The percentage of operating income (loss) is calculated based on total segment net revenues. The operating income (loss) percentage for Corporate Other is not presented as a meaningful metric (NM). |
(2) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the Company's operating segments but managed through the Company's central foreign exchange risk management program, subscription revenues from the Company's MapMyRun and MapMyRide platforms (collectively "MMR"), and revenue from other digital business opportunities. Corporate Other also includes expenses related to the Company's central supporting functions. |
Under Armour, Inc. As of June 30, 2024, and March 31, 2024 (Unaudited; in thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
| ||||
in '000s | June 30, 2024 | March 31, 2024 | ||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ 884,552 | $ 858,691 | ||
Accounts receivable, net | 684,695 | 757,339 | ||
Inventories | 1,119,599 | 958,495 | ||
Prepaid expenses and other current assets, net | 279,140 | 289,157 | ||
Total current assets | 2,967,986 | 2,863,682 | ||
Property and equipment, net | 671,144 | 664,503 | ||
Operating lease right-of-use assets | 418,794 | 434,699 | ||
Goodwill | 476,098 | 478,302 | ||
Intangible assets, net | 6,433 | 7,000 | ||
Deferred income taxes | 228,468 | 221,033 | ||
Other long-term assets | 91,588 | 91,515 | ||
Total assets | $ 4,860,511 | $ 4,760,734 | ||
Liabilities and Stockholders' Equity | ||||
Current maturities of long-term debt | $ — | $ 80,919 | ||
Accounts payable | 697,983 | 483,731 | ||
Accrued expenses | 697,722 | 287,853 | ||
Customer refund liabilities | 130,506 | 139,283 | ||
Operating lease liabilities | 134,976 | 139,331 | ||
Other current liabilities | 57,104 | 34,344 | ||
Total current liabilities | 1,718,291 | 1,165,461 | ||
Long-term debt, net of current maturities | 595,384 | 594,873 | ||
Operating lease liabilities, non-current | 612,416 | 627,665 | ||
Other long-term liabilities | 117,848 | 219,449 | ||
Total liabilities | 3,043,939 | 2,607,448 | ||
Total stockholders' equity | 1,816,572 | 2,153,286 | ||
Total liabilities and stockholders' equity | $ 4,860,511 | $ 4,760,734 |
Under Armour, Inc. For the Three Months Ended June 30, 2024 and 2023 (Unaudited; in thousands)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Three Months Ended June 30, | |||
in '000s | 2024 | 2023 | |
Cash flows from operating activities | |||
Net income (loss) | $ (305,426) | $ 10,010 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 32,830 | 34,695 | |
Unrealized foreign currency exchange rate (gain) loss | 1,610 | 8,230 | |
Loss on disposal of property and equipment | 379 | 405 | |
Non-cash restructuring and impairment charges | 8,038 | — | |
Amortization of bond premium and debt issuance costs | 511 | 548 | |
Stock-based compensation | 15,924 | 11,777 | |
Deferred income taxes | 7,071 | (8,756) | |
Changes in reserves and allowances | (22) | 12,005 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 71,014 | 63,725 | |
Inventories | (162,623) | (145,023) | |
Prepaid expenses and other assets | (34,830) | (10,148) | |
Other non-current assets | 13,837 | 28,715 | |
Accounts payable | 200,289 | 46,854 | |
Accrued expenses and other liabilities | 320,270 | (46,795) | |
Customer refund liabilities | (9,007) | (24,472) | |
Income taxes payable and receivable | (6,890) | 12,223 | |
Net cash provided by (used in) operating activities | 152,975 | (6,007) | |
Cash flows from investing activities | |||
Purchases of property and equipment | (45,681) | (32,553) | |
Sale of MyFitnessPal platform | 50,000 | 45,000 | |
Net cash provided by (used in) investing activities | 4,319 | 12,447 | |
Cash flows from financing activities | |||
Common shares repurchased | (40,000) | — | |
Repayment of long-term debt | (80,919) | — | |
Employee taxes paid for shares withheld for income taxes | (7,944) | (2,104) | |
Proceeds from exercise of stock options and other stock issuances | 643 | 870 | |
Net cash provided by (used in) financing activities | (128,220) | (1,234) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,830) | (12,087) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 26,244 | (6,881) | |
Cash, cash equivalents and restricted cash | |||
Beginning of period | 876,917 | 726,745 | |
End of period | $ 903,161 | $ 719,864 |
Under Armour, Inc. For the Three Months Ended June 30, 2024 (Unaudited)
The table below presents the reconciliation of net revenue growth (decline) calculated according to GAAP to currency-neutral net revenue,
CURRENCY-NEUTRAL NET REVENUE GROWTH (DECLINE) RECONCILIATION | |
Three Months Ended | |
Total Net Revenue | |
Net revenue growth - GAAP | (10.1) % |
Foreign exchange impact | 0.2 % |
Currency neutral net revenue growth - Non-GAAP | (9.9) % |
Net revenue growth - GAAP | (14.2) % |
Foreign exchange impact | — % |
Currency neutral net revenue growth - Non-GAAP | (14.2) % |
EMEA | |
Net revenue growth - GAAP | 0.1 % |
Foreign exchange impact | (0.4) % |
Currency neutral net revenue growth - Non-GAAP | (0.3) % |
Net revenue growth - GAAP | (10.1) % |
Foreign exchange impact | 2.8 % |
Currency neutral net revenue growth - Non-GAAP | (7.3) % |
Net revenue growth - GAAP | 15.6 % |
Foreign exchange impact | (3.9) % |
Currency neutral net revenue growth - Non-GAAP | 11.7 % |
Total International | |
Net revenue growth - GAAP | (2.4) % |
Foreign exchange impact | 0.6 % |
Currency neutral net revenue growth - Non-GAAP | (1.8) % |
Under Armour, Inc. For the Three Months Ended June 30, 2024 (Unaudited; in thousands, except per share amounts)
The tables below present the reconciliation of the Company's condensed consolidated statement of operations presented in
ADJUSTED SELLING GENERAL AND ADMINISTRATIVE EXPENSES
| |
in '000s | Three months ended |
GAAP selling, general and administrative expenses | $ 837,317 |
Add: Impact of litigation reserve | (274,000) |
Add: Impact of restructuring-related transformational expenses | (8,657) |
Adjusted selling, general and administrative expenses | $ 554,660 |
ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION | |
in '000s | Three months ended |
GAAP loss from operations | $ (299,728) |
Add: Impact of litigation reserve | 274,000 |
Add: Impact of restructuring charges | 25,086 |
Add: Impact of restructuring-related transformational expenses | 8,657 |
Adjusted income from operations | $ 8,015 |
ADJUSTED NET INCOME (LOSS) RECONCILIATION | |
in '000s | Three months ended |
GAAP net loss | $ (305,426) |
Add: Impact of litigation reserve | 274,000 |
Add: Impact of restructuring charges | 25,086 |
Add: Impact of restructuring-related transformational expenses | 8,657 |
Add: Impact of provision for income taxes | 1,339 |
Adjusted net income | $ 3,656 |
Under Armour, Inc. For the Three Months Ended June 30, 2024 (Unaudited; in thousands, except per share amounts)
The tables below present the reconciliation of the Company's condensed consolidated statement of operations presented in
ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION | |
Three months ended | |
GAAP diluted net loss per share | $ (0.70) |
Add: Impact of litigation reserve | 0.63 |
Add: Impact of restructuring charges | 0.06 |
Add: Impact of restructuring-related transformational expenses | 0.02 |
Add: Impact of provision for income taxes | — |
Adjusted diluted net income per share | $ 0.01 |
Under Armour, Inc. Outlook for the Year Ended March 31, 2025 (Unaudited; in millions, except per share amounts)
The tables below present the reconciliation of the Company's fiscal 2025 outlook presented in accordance with GAAP to certain adjusted
ADJUSTED OPERATING INCOME RECONCILIATION
| ||||
(in millions) | Year Ending March 31, 2025 | |||
Low end of estimate | High end of estimate | |||
GAAP loss from operations | $ (214) | $ (194) | ||
Add: Impact of litigation reserve | 274 | 274 | ||
Add: Impact of charges under 2025 restructuring plan (1) | 80 | 80 | ||
Adjusted income from operations | $ 140 | $ 160 | ||
ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION
| ||||
Year Ending March 31, 2025 | ||||
Low end of estimate | High end of estimate | |||
GAAP diluted net loss per share | $ (0.56) | $ (0.53) | ||
Add: Impact of litigation reserve | 0.63 | 0.63 | ||
Add: Impact of charges under 2025 restructuring plan (1) | 0.18 | 0.18 | ||
Add: Impact of provision for income taxes | (0.06) | (0.06) | ||
Adjusted diluted net income per share | $ 0.19 | $ 0.22 | ||
(1) The estimated impact of the restructuring plan presented above assumes the mid-point of the Company's estimated range of restructuring and related charges, which is | ||||
Under Armour, Inc. Outlook for the Quarter Ended September 30, 2024 (Unaudited; in millions, except per share amounts)
The tables below present the reconciliation of the Company's second quarter fiscal 2025 outlook presented in accordance with GAAP to certain adjusted
ADJUSTED OPERATING INCOME RECONCILIATION
| ||||
(in millions) | Quarter Ending September 30, 2024 | |||
Low end of estimate | High end of estimate | |||
GAAP income from operations | $ 85 | $ 95 | ||
Add: Estimated impact of charges under 2025 restructuring plan | 25 | 25 | ||
Adjusted income from operations | $ 110 | $ 120 | ||
ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION | ||||
Quarter Ending September 30, 2024 | ||||
Low end of estimate | High end of estimate | |||
GAAP diluted net income per share | $ 0.19 | $ 0.21 | ||
Add: Estimated impact of charges under 2025 restructuring plan | 0.06 | 0.06 | ||
Add: Impact of provision for income taxes | (0.07) | (0.07) | ||
Adjusted diluted net income per share | $ 0.18 | $ 0.20 |
Under Armour, Inc. As of June 30, 2024, and 2023
COMPANY-OWNED & OPERATED DOOR COUNT | ||||
June 30, | ||||
2024 | 2023 | |||
Factory House | 183 | 177 | ||
Brand House | 17 | 19 | ||
North America total doors | 200 | 196 | ||
Factory House | 173 | 168 | ||
Brand House | 68 | 79 | ||
International total doors | 241 | 247 | ||
Factory House | 356 | 345 | ||
Brand House | 85 | 98 | ||
Total doors | 441 | 443 |
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SOURCE Under Armour, Inc.
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