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Jun 30, 2023
Under Armour Q1 2024 Earnings Report
Under Armour's first quarter of fiscal year 2024 resulted in a slight revenue decrease, but growth in international and direct-to-consumer businesses.
Key Takeaways
Under Armour reported a 2% decrease in revenue to $1.3 billion for Q1 fiscal 2024, with wholesale revenue declining and direct-to-consumer revenue increasing. International revenue saw growth, while North America revenue decreased. The company maintains its fiscal 2024 outlook.
Revenue decreased by 2 percent to $1.3 billion, or 1 percent on a currency-neutral basis.
Wholesale revenue decreased 6 percent to $742 million, while direct-to-consumer revenue increased 4 percent to $544 million.
North America revenue decreased 9 percent to $827 million, while international revenue increased 12 percent to $485 million.
Gross margin declined 60 basis points to 46.1 percent.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Under Armour maintains its fiscal 2024 outlook, with revenue expected to be flat to up slightly.
Positive Outlook
- Revenue is expected to be flat to up slightly.
- Gross margin is expected to be up 25 to 75 basis points compared to the prior year’s rate of 44.9 percent.
- Gross margin increase is driven by supply chain tailwinds related to lower freight costs.
- Operating income is expected to reach $310 million to $330 million.
- Diluted earnings per share is expected to be between $0.47 and $0.51.
Challenges Ahead
- Gross margin increase is partially offset by mix impacts related to higher off-price revenue.
- Gross margin increase is partially offset by higher promotions expected in the company’s direct-to-consumer business.
- Selling, general & administrative expenses are expected to be flat to up slightly.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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