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Mar 31, 2022
Under Armour Q1 2022 Earnings Report
Under Armour's transition quarter results were announced, showing a slight revenue increase and a net loss.
Key Takeaways
Under Armour reported a 3% increase in revenue to $1.3 billion for the transition quarter ended March 31, 2022. However, the company experienced a net loss of $60 million, or $0.13 per share. The gross margin decreased by 350 basis points to 46.5%, primarily due to elevated freight expenses. The company also provided its initial fiscal 2023 outlook, expecting revenue to increase by 5 to 7 percent.
Revenue increased 3% to $1.3 billion, or 4% on a currency-neutral basis.
Gross margin decreased 350 basis points to 46.5% due to elevated freight expenses.
Net loss was $60 million, or $0.13 per share.
Fiscal 2023 revenue is expected to increase 5 to 7 percent.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Under Armour provided its fiscal year 2023 outlook, anticipating revenue growth of 5 to 7 percent, but expecting gross margin to be down 150 to 200 basis points.
Positive Outlook
- Revenue is expected to increase 5 to 7 percent versus the comparable baseline period.
- Mid-single-digit growth rate in North America is expected.
- A low-teens growth rate in the international business is expected.
- Diluted earnings per share is expected to be between $0.79 and $0.84.
- Adjusted diluted earnings per share is expected to be between $0.63 and $0.68.
Challenges Ahead
- Approximately three percentage points of headwinds related to strategic decisions to cancel orders.
- Gross margin is expected to be down 150 to 200 basis points.
- Expected inflationary pressures on freight and product costs.
- Unfavorable channel mix is expected.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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