UNDER ARMOUR REPORTS THIRD QUARTER FISCAL 2024 RESULTS; TIGHTENS FISCAL 2024 OUTLOOK
- None.
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Insights
The recent financial results from Under Armour reveal a mixed performance, with a 6 percent decrease in overall revenue, which is a critical metric for investors as it reflects the company's sales efficiency and market demand. The international revenue growth, particularly in the Asia-Pacific and Latin America regions, is a positive sign, indicating potential market expansion and resilience against a challenging North American market, where revenue decreased by 12 percent. However, the decline in wholesale revenue by 13 percent is concerning, as it suggests a potential weakening of brand positioning and challenges in the B2B segment.
Under Armour's gross margin improvement, driven by lower freight expenses, signals effective cost management. Yet, the reliance on the off-price channel and increased promotional activities to manage inventory could potentially erode brand value over time. Investors should consider the implications of such strategies on long-term profitability and brand perception.
The completion of the share buyback program, with $500 million worth of shares repurchased, reflects a potential confidence by management in the company's intrinsic value. This could be a positive signal to investors, as share buybacks often aim to return value to shareholders and can indicate undervaluation.
Finally, the updated fiscal outlook suggests management's cautious optimism, with a tightened revenue decline expectation and a slight increase in gross margin projections. The reduction in capital expenditure forecasts could be interpreted as a strategic pullback to maintain financial flexibility in uncertain market conditions.
Under Armour's direct-to-consumer segment showing growth, particularly in eCommerce, is a testament to the ongoing retail shift towards digital platforms. The 5 percent increase in owned and operated store revenue, combined with a 2 percent increase in eCommerce, suggests that the company's omni-channel strategy is gaining traction. This is a critical area for investors to watch, as direct-to-consumer channels typically offer higher margins than wholesale.
Internationally, the currency-neutral revenue growth indicates a strong underlying performance that is somewhat masked by currency fluctuations. This highlights the importance of evaluating a company's operational success separate from exchange rate impacts, which can be volatile and external to the company's control.
The flat accessories revenue may point to market saturation or lack of innovation in this product category. As accessories often carry higher margins, stagnation in this area could impact overall profitability.
It is also worth noting the strategic implications of Under Armour's inventory management. A 9 percent reduction in inventory suggests a proactive approach to avoid overstocking, which can lead to discounting and margin compression. However, it is essential to balance this with the risk of stockouts, which could lead to lost sales opportunities.
The $23 million litigation reserve expense included in the selling, general & administrative expenses is a significant financial consideration. Such reserves are set aside to cover potential losses from legal disputes and their size can reflect the magnitude of the legal issues a company faces. While this does not directly affect the core operations of Under Armour, it is a financial headwind and could have implications for future profitability if such legal matters escalate.
Investors should be aware of the legal risks associated with the company and consider the potential for future litigation costs when evaluating the company's financial health. A thorough understanding of the nature of these legal disputes is crucial, as they can have reputational as well as financial consequences.
"Despite a mixed retail environment during the holiday season, our third quarter revenue results were in line with our expectations; we were able to deliver better than anticipated profitability and remain on track to achieve our full-year outlook," said Under Armour President and CEO Stephanie Linnartz. "As we close out fiscal 2024 and our strengthened leadership team begins to come up to speed in the quarters ahead – we are working to reset Under Armour toward a path of improved revenue growth and enhanced value creation in the future."
Third Quarter Fiscal 2024 Review
- Revenue was down 6 percent to
$1.5 billion - Wholesale revenue decreased 13 percent to
$712 million $741 million North America revenue decreased 12 percent to$915 million $566 million Asia-Pacific (up 8 percent currency neutral), and 9 percent inLatin America (up 3 percent currency neutral).- Apparel revenue decreased 6 percent to
$1 billion $331 million $105 million
- Wholesale revenue decreased 13 percent to
- Gross margin increased 100 basis points to 45.2 percent, driven primarily by supply chain benefits related to lower freight expenses, partially offset by proactive inventory management actions, including a higher percentage of sales to the off-price channel and increased promotional activities in our direct-to-consumer business.
- Selling, general & administrative expenses were flat year over year at
$602 million $23 million $579 million - Operating income was
$70 million $92 million - Net Income was
$114 million $50 million $84 million - Diluted earnings per share was
$0.26 $0.19 - Inventory was down 9 percent to
$1.1 billion - Cash and Cash Equivalents were
$1 billion $1.1 billion
Share Buyback Update
Under Armour repurchased
Updated Fiscal 2024 Outlook
Key points related to Under Armour's fiscal year 2024 outlook include:
- Revenue is expected to be down 3 to 4 percent, tightening the previous expectation of a 2 to 4 percent decline.
- Gross margin is expected to be up 120 to 130 basis points, an increase from the prior expectation of a 100 to 125 basis point increase.
- Selling, general & administrative expenses are unchanged from the previous expectation of "flat to down slightly."
- Operating income is expected to reach
$287 million $297 million $310 million $320 million - Diluted earnings per share is expected to be
$0.57 $0.59 $0.12 $0.05 $0.07 $0.50 $0.52 - Capital expenditures are now expected to reach between
$210 million $230 million $230 million $250 million
Conference Call and Webcast
Under Armour will hold its third quarter fiscal 2024 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 2024 fiscal year ending March 31, 2024. Management believes this information is helpful to investors to compare 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 effect of the company's litigation reserve expense and any gain or loss from divestitures (including associated earn-outs and expenses) 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, plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, 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," "should," "could," "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 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 inflation, that could affect overall consumer spending in our industry; the impact of the COVID-19 pandemic on our industry and our business, financial condition and results of operations, including impacts on the global supply chain; failure of our suppliers, manufacturers or logistics providers to produce or deliver our products in a timely or cost-effective manner; labor or other disruptions at ports or our suppliers or manufacturers; 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 costs related to our supply chain (including labor); changes to the financial health of our customers; our ability to successfully execute our long-term strategies; 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; loss of key customers, suppliers or manufacturers; our ability to effectively market and maintain a positive brand image; 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; our ability to successfully manage or realize expected results from significant transactions and investments; our ability to effectively meet the expectations of our stakeholders with respect to environmental, social and governance practices; 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 attract key talent and retain the services of our senior management and other key employees; our ability to effectively drive operational efficiency in our business; 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 statement's date or to reflect unanticipated events.
Under Armour, Inc. For the Three and Nine Months Ended December 31, 2023, and 2022 (Unaudited; in thousands, except per share amounts)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION | ||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
in '000s | 2023 | % of Net | 2022 | % of Net | 2023 | % of Net | 2022 | % of Net | ||||||||
Net revenues | $ 1,486,095 | 100.0 % | $ 1,581,781 | 100.0 % | $ 4,369,817 | 100.0 % | $ 4,504,723 | 100.0 % | ||||||||
Cost of goods sold | 814,914 | 54.8 % | 883,376 | 55.8 % | 2,338,905 | 53.5 % | 2,462,287 | 54.7 % | ||||||||
Gross profit | 671,181 | 45.2 % | 698,405 | 44.2 % | 2,030,912 | 46.5 % | 2,042,436 | 45.3 % | ||||||||
Selling, general and administrative expenses | 601,661 | 40.5 % | 603,746 | 38.2 % | 1,794,703 | 41.1 % | 1,793,884 | 39.8 % | ||||||||
Income (loss) from operations | 69,520 | 4.7 % | 94,659 | 6.0 % | 236,209 | 5.4 % | 248,552 | 5.5 % | ||||||||
Interest income (expense), net | (211) | — % | (1,615) | (0.1) % | (2,210) | (0.1) % | (11,175) | (0.2) % | ||||||||
Other income (expense), net | 49,636 | 3.3 % | 47,312 | 3.0 % | 36,822 | 0.8 % | 27,300 | 0.6 % | ||||||||
Income (loss) before income taxes | 118,945 | 8.0 % | 140,356 | 8.9 % | 270,821 | 6.2 % | 264,677 | 5.9 % | ||||||||
Income tax expense (benefit) | 4,999 | 0.3 % | 18,811 | 1.2 % | 38,464 | 0.9 % | 46,719 | 1.0 % | ||||||||
Income (loss) from equity method investments | 197 | — % | 72 | — % | (51) | — % | (1,734) | — % | ||||||||
Net income (loss) | $ 114,143 | 7.7 % | $ 121,617 | 7.7 % | $ 232,306 | 5.3 % | $ 216,224 | 4.8 % | ||||||||
Basic net income (loss) per share of Class A, B and | $ 0.26 | $ 0.27 | $ 0.53 | $ 0.48 | ||||||||||||
Diluted net income (loss) per share of Class A, B and | $ 0.26 | $ 0.27 | $ 0.52 | $ 0.47 | ||||||||||||
Weighted average common shares outstanding Class A, B and C common stock | ||||||||||||||||
Basic | 437,314 | 448,833 | 441,893 | 453,840 | ||||||||||||
Diluted | 448,435 | 458,990 | 452,208 | 463,750 | ||||||||||||
Under Armour, Inc. For the Three and Nine Months Ended December 31, 2023, and 2022 (Unaudited; in thousands)
NET REVENUES BY PRODUCT CATEGORY | |||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||
in '000s | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||
Apparel | $ 1,016,707 | $ 1,075,714 | (5.5) % | $ 2,911,804 | $ 2,982,410 | (2.4) % | |||||||
Footwear | 331,000 | 354,389 | (6.6) % | 1,045,872 | 1,077,525 | (2.9) % | |||||||
Accessories | 104,510 | 104,875 | (0.3) % | 316,305 | 312,823 | 1.1 % | |||||||
Net Sales | 1,452,217 | 1,534,978 | (5.4) % | 4,273,981 | 4,372,758 | (2.3) % | |||||||
Licensing revenues | 29,069 | 29,734 | (2.2) % | 82,787 | 90,992 | (9.0) % | |||||||
Corporate Other (1) | 4,809 | 17,069 | (71.8) % | 13,049 | 40,973 | (68.2) % | |||||||
Total net revenues | $ 1,486,095 | $ 1,581,781 | (6.0) % | $ 4,369,817 | $ 4,504,723 | (3.0) % | |||||||
NET REVENUES BY DISTRIBUTION CHANNEL | |||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||
in '000s | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||
Wholesale | $ 711,699 | $ 819,781 | (13.2) % | $ 2,393,382 | $ 2,559,621 | (6.5) % | |||||||
Direct-to-consumer | 740,518 | 715,197 | 3.5 % | 1,880,599 | 1,813,137 | 3.7 % | |||||||
Net Sales | 1,452,217 | 1,534,978 | (5.4) % | 4,273,981 | 4,372,758 | (2.3) % | |||||||
License revenues | 29,069 | 29,734 | (2.2) % | 82,787 | 90,992 | (9.0) % | |||||||
Corporate Other (1) | 4,809 | 17,069 | (71.8) % | 13,049 | 40,973 | (68.2) % | |||||||
Total net revenues | $ 1,486,095 | $ 1,581,781 | (6.0) % | $ 4,369,817 | $ 4,504,723 | (3.0) % | |||||||
NET REVENUES BY SEGMENT | |||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||
in '000s | 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||
$ 915,387 | $ 1,037,637 | (11.8) % | $ 2,733,432 | $ 2,958,816 | (7.6) % | ||||||||
EMEA | 284,049 | 265,250 | 7.1 % | 797,781 | 733,110 | 8.8 % | |||||||
212,018 | 198,021 | 7.1 % | 646,315 | 600,415 | 7.6 % | ||||||||
69,832 | 63,804 | 9.4 % | 179,240 | 171,409 | 4.6 % | ||||||||
Corporate Other (1) | 4,809 | 17,069 | (71.8) % | 13,049 | 40,973 | (68.2) % | |||||||
Total net revenues | $ 1,486,095 | $ 1,581,781 | (6.0) % | $ 4,369,817 | $ 4,504,723 | (3.0) % | |||||||
(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, as well as 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 and Nine Months Ended December 31, 2023, and 2022 (Unaudited; in thousands)
INCOME (LOSS) FROM OPERATIONS BY SEGMENT | |||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||
in '000s | 2023 | % of Net | 2022 | % of Net | 2023 | % of Net | 2022 | % of Net | |||
$ 161,663 | 17.7 % | $ 198,919 | 19.2 % | $ 535,171 | 19.6 % | $ 598,049 | 20.2 % | ||||
EMEA | 51,635 | 18.2 % | 30,947 | 11.7 % | 123,281 | 15.5 % | 85,023 | 11.6 % | |||
16,014 | 7.6 % | 10,811 | 5.5 % | 86,020 | 13.3 % | 76,890 | 12.8 % | ||||
13,569 | 19.4 % | 5,805 | 9.1 % | 32,990 | 18.4 % | 19,216 | 11.2 % | ||||
Corporate Other (1) | (173,361) | NM | (151,823) | NM | (541,253) | NM | (530,626) | NM | |||
Income (loss) from operations | $ 69,520 | 4.7 % | $ 94,659 | 6.0 % | $ 236,209 | 5.4 % | $ 248,552 | 5.5 % | |||
(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, as well as 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. |
(2) 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). |
Under Armour, Inc. As of December 31, 2023, and March 31, 2023 (Unaudited; in thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
| ||||
in '000s | December 31, 2023 | March 31, 2023 | ||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ 1,040,090 | $ 711,910 | ||
Accounts receivable, net | 691,546 | 759,860 | ||
Inventories | 1,104,027 | 1,190,253 | ||
Prepaid expenses and other current assets, net | 287,153 | 297,563 | ||
Total current assets | 3,122,816 | 2,959,586 | ||
Property and equipment, net | 714,183 | 672,736 | ||
Operating lease right-of-use assets | 456,201 | 489,306 | ||
Goodwill | 481,573 | 481,992 | ||
Intangible assets, net | 8,002 | 8,940 | ||
Deferred income taxes | 210,600 | 186,167 | ||
Other long-term assets | 51,131 | 58,356 | ||
Total assets | $ 5,044,506 | $ 4,857,083 | ||
Liabilities and Stockholders' Equity | ||||
Current maturities of long-term debt | $ 80,919 | $ — | ||
Accounts payable | 699,431 | 649,116 | ||
Accrued expenses | 322,780 | 354,643 | ||
Customer refund liabilities | 160,786 | 160,533 | ||
Operating lease liabilities | 143,425 | 140,990 | ||
Other current liabilities | 58,841 | 51,609 | ||
Total current liabilities | 1,466,182 | 1,356,891 | ||
Long-term debt, net of current maturities | 595,124 | 674,478 | ||
Operating lease liabilities, non-current | 654,216 | 705,713 | ||
Other long-term liabilities | 155,964 | 121,598 | ||
Total liabilities | 2,871,486 | 2,858,680 | ||
Total stockholders' equity | 2,173,020 | 1,998,403 | ||
Total liabilities and stockholders' equity | $ 5,044,506 | $ 4,857,083 | ||
Under Armour, Inc. For the Nine Months Ended December 31, 2023 and 2022 (Unaudited; in thousands)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Nine Months Ended December 31, | |||
in '000s | 2023 | 2022 | |
Cash flows from operating activities | |||
Net income (loss) | $ 232,306 | $ 216,224 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 106,685 | 102,656 | |
Unrealized foreign currency exchange rate (gain) loss | (904) | (19,424) | |
Loss on disposal of property and equipment | 746 | 1,411 | |
Amortization of bond premium and debt issuance costs | 1,565 | 1,644 | |
Stock-based compensation | 33,163 | 29,362 | |
Deferred income taxes | (24,430) | (132) | |
Changes in reserves and allowances | 25,085 | 7,316 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 55,912 | 1,026 | |
Inventories | 71,400 | (401,551) | |
Prepaid expenses and other assets | (45,363) | (68,931) | |
Other non-current assets | 42,149 | (46,272) | |
Accounts payable | 31,470 | 168,681 | |
Accrued expenses and other liabilities | (42,630) | 50,892 | |
Customer refund liabilities | 80 | 12,440 | |
Income taxes payable and receivable | 5,884 | 19,057 | |
Net cash provided by (used in) operating activities | 493,118 | 74,399 | |
Cash flows from investing activities | |||
Purchases of property and equipment | (132,796) | (147,620) | |
Earn-out from the sale of the MyFitnessPal platform | 45,000 | 35,000 | |
Net cash provided by (used in) investing activities | (87,796) | (112,620) | |
Cash flows from financing activities | |||
Common shares repurchased | (75,000) | (125,000) | |
Employee taxes paid for shares withheld for income taxes | (2,428) | (868) | |
Proceeds from exercise of stock options and other stock issuances | 2,443 | 2,809 | |
Net cash provided by (used in) financing activities | (74,985) | (123,059) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 136 | 3,205 | |
Net increase in (decrease in) cash, cash equivalents and restricted cash | 330,473 | (158,075) | |
Cash, cash equivalents and restricted cash | |||
Beginning of period | 727,726 | 1,022,126 | |
End of period | $ 1,058,199 | $ 864,051 | |
Under Armour, Inc. For the Three and Nine Months Ended December 31, 2023 (Unaudited)
The table below presents the reconciliation of net revenue growth (decline) calculated according to GAAP to currency-neutral net revenue, a non-GAAP measure. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-GAAP financial measures.
CURRENCY-NEUTRAL NET REVENUE GROWTH (DECLINE) RECONCILIATION | |||
Three Months Ended | Nine Months Ended | ||
Total Net Revenue | |||
Net revenue growth - GAAP | (6.0) % | (3.0) % | |
Foreign exchange impact | (1.1) % | (0.2) % | |
Currency neutral net revenue growth - Non-GAAP | (7.1) % | (3.2) % | |
Net revenue growth - GAAP | (11.8) % | (7.6) % | |
Foreign exchange impact | — % | 0.3 % | |
Currency neutral net revenue growth - Non-GAAP | (11.8) % | (7.3) % | |
EMEA | |||
Net revenue growth - GAAP | 7.1 % | 8.8 % | |
Foreign exchange impact | (5.1) % | (3.5) % | |
Currency neutral net revenue growth - Non-GAAP | 2.0 % | 5.3 % | |
Net revenue growth - GAAP | 7.1 % | 7.6 % | |
Foreign exchange impact | 0.4 % | 3.5 % | |
Currency neutral net revenue growth - Non-GAAP | 7.5 % | 11.1 % | |
Net revenue growth - GAAP | 9.4 % | 4.6 % | |
Foreign exchange impact | (6.7) % | (8.7) % | |
Currency neutral net revenue growth - Non-GAAP | 2.7 % | (4.1) % | |
Total International | |||
Net revenue growth - GAAP | 7.4 % | 7.9 % | |
Foreign exchange impact | (3.3) % | (1.4) % | |
Currency neutral net revenue growth - Non-GAAP | 4.1 % | 6.5 % | |
Under Armour, Inc. For the Three and Nine Months Ended December 31, 2023 (Unaudited; in thousands, except per share amounts)
The tables below present the reconciliation of the Company's condensed consolidated statement of operations presented in accordance with GAAP to certain adjusted non-GAAP financial measures discussed in this press release. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-GAAP financial measures.
ADJUSTED SELLING GENERAL AND ADMINISTRATIVE EXPENSES | |||
in '000s | Three months ended | Nine months ended | |
GAAP selling, general and administrative expenses | $ 601,661 | $ 1,794,703 | |
Add: Impact of litigation reserve | (22,500) | (22,500) | |
Adjusted selling, general and administrative expenses | $ 579,161 | $ 1,772,203 | |
ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION | |||
in '000s | Three months ended | Nine months ended | |
GAAP income from operations | $ 69,520 | $ 236,209 | |
Add: Impact of litigation reserve | 22,500 | 22,500 | |
Adjusted income from operations | $ 92,020 | $ 258,709 | |
ADJUSTED NET INCOME (LOSS) RECONCILIATION | |||
in '000s | Three months ended | Nine months ended | |
GAAP net income | $ 114,143 | $ 232,306 | |
Add: Impact of litigation reserve | 22,500 | 22,500 | |
Add: Impact of earn-out recorded in connection with the sale of the | (50,000) | (50,000) | |
Add: Impact of commission expense in connection with the sale of the | 700 | 700 | |
Add: Impact of provision for income taxes | (3,109) | (3,109) | |
Adjusted net income | $ 84,234 | $ 202,397 | |
ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION | |||
Three months ended | Nine months ended | ||
GAAP diluted net income per share | $ 0.26 | $ 0.52 | |
Add: Impact of litigation reserve | 0.05 | 0.05 | |
Add: Impact of earn-out recorded in connection with the sale of the | (0.11) | (0.11) | |
Add: Impact of commission expense in connection with the sale of the | — | — | |
Add: Impact of provision for income taxes | (0.01) | (0.01) | |
Adjusted diluted net income per share | $ 0.19 | $ 0.45 | |
Under Armour, Inc. Outlook for the Year Ended March 31, 2024 (Unaudited; in millions, except per share amounts)
The tables below present the reconciliation of the Company's fiscal 2024 outlook presented in accordance with GAAP to certain adjusted non-GAAP financial measures discussed in this press release. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-GAAP financial measures.
ADJUSTED OPERATING INCOME RECONCILIATION
| ||||
(in millions) | Year Ended March 31, 2024 | |||
Low end of estimate | High end of estimate | |||
GAAP income from operations | ||||
Add: Impact of litigation reserve | 23 | 23 | ||
Adjusted income from operations | ||||
ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION | ||||
(in millions) | Year Ended March 31, 2024 | |||
Low end of estimate | High end of estimate | |||
GAAP diluted net income per share | ||||
Add: Impact of litigation reserve, net of tax | 0.05 | 0.05 | ||
Add: Impact of earn-out recorded in connection with the sale of the MyFitnessPal platform, net of tax | (0.12) | (0.12) | ||
Adjusted diluted net income per share | ||||
Under Armour, Inc. As of December 31, 2023, and 2022 COMPANY-OWNED & OPERATED DOOR COUNT | ||||
December 31, | ||||
2023 | 2022 | |||
Factory House | 183 | 177 | ||
Brand House | 17 | 18 | ||
| 200 | 195 | ||
Factory House | 173 | 165 | ||
Brand House | 67 | 78 | ||
International total doors | 240 | 243 | ||
Factory House | 356 | 342 | ||
Brand House | 84 | 96 | ||
Total doors | 440 | 438 | ||
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SOURCE Under Armour, Inc.
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