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Jun 30, 2021
Under Armour Q2 2021 Earnings Report
Under Armour's second-quarter results exceeded expectations, showing solid progress compared to 2020 and 2019.
Key Takeaways
Under Armour reported strong second-quarter results with revenue up 91% to $1.4 billion and raised its full-year outlook, driven by significant growth in North America and international markets. The company's performance reflects improvements across product, marketing, and financial results, positioning it well for future profitable growth.
Revenue increased by 91% to $1.4 billion, with wholesale revenue up 157% and direct-to-consumer revenue up 52%.
North America revenue increased 101% to $905 million, and international revenue increased 100% to $446 million.
Apparel revenue increased 105% to $874 million, footwear revenue increased 85% to $343 million, and accessories revenue increased 99% to $112 million.
Diluted earnings per share was $0.13, and adjusted diluted earnings per share was $0.24.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Under Armour updated its full-year 2021 outlook with increased expectations for revenue growth, gross margin, operating income, and diluted earnings per share.
Positive Outlook
- Revenue is expected to be up at a low twenties percentage rate.
- North America is expected to see a low twenties percentage growth rate.
- The international business is expected to see a mid-thirties percentage growth rate.
- Gross margin is expected to increase 50 to 70 basis points.
- Adjusted diluted earnings per share are expected to reach $0.50 to $0.52.
Challenges Ahead
- Continued uncertainty related to COVID-19 could have material impacts on the company’s full-year business results.
- Higher freight expenses are expected.
- The sale of the MyFitnessPal platform will offset gross margin benefits.
- Potential disruptions in the supply chain.
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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