Loading...
•
Jun 30, 2020
Under Armour Q2 2020 Earnings Report
Under Armour's financial performance significantly declined due to the COVID-19 pandemic in the second quarter of 2020.
Key Takeaways
Under Armour reported a 41% decrease in revenue to $708 million due to the COVID-19 pandemic. Despite the revenue decline, gross margin increased by 280 basis points to 49.3%. The company experienced a net loss of $183 million, or $0.40 per share.
Revenue decreased 41 percent to $708 million, impacted by the COVID-19 pandemic.
Wholesale revenue decreased 58 percent to $299 million, and direct-to-consumer revenue decreased 13 percent to $368 million.
North America revenue decreased 45 percent to $450 million, while international revenue decreased 34 percent to $224 million.
Gross margin increased 280 basis points to 49.3 percent due to channel mix and higher direct-to-consumer sales.
Under Armour
Under Armour
Under Armour Revenue by Segment
Under Armour Revenue by Geographic Location
Revenue by Segment
Apparel Revenue
CapyFin.comFootwear Revenue
CapyFin.comAccessories Revenue
CapyFin.comLicensing Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Due to ongoing uncertainty related to COVID-19 and its potential effect on global markets, the company continues to anticipate material impacts on its business results for the remainder of 2020.
Positive Outlook
- Most locations where the brand can be purchased have reopened.
- Traffic trends continue to be considerably lower than the prior year period, however, the overall rate of conversion is higher.
- The company experienced significant eCommerce growth around the world during the quarter.
Challenges Ahead
- Traffic trends are expected to remain lower for the remainder of 2020.
- Continued uncertainty related to consumer shopping dynamics.
- Potential for a highly promotional environment.
- Proactive decisions to reduce inventory purchases to be more aligned with anticipated demand related to ongoing COVID-19 impacts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income