Loading...
•
Sep 30, 2022
Under Armour Q2 2023 Earnings Report
Announced second quarter results that were in line with expectations and updated full-year outlook.
Key Takeaways
Under Armour reported a 2% increase in revenue to $1.6 billion, with a decrease in gross margin by 560 basis points to 45.4%. Operating income was $119 million, and net income reached $87 million, resulting in diluted earnings per share of $0.19.
Revenue increased by 2% to $1.6 billion, or 5% on a currency-neutral basis.
Wholesale revenue increased 4% to $948 million, while direct-to-consumer revenue decreased 4% to $577 million.
North American revenue decreased 2% to $1 billion, and international revenue increased 7% to $547 million.
Diluted earnings per share was $0.19, with adjusted diluted earnings per share at $0.20.
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.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Under Armour expects revenue to grow at a low single-digit percentage rate, with currency-neutral revenue up at a mid-single-digit percentage rate. Operating income is projected to reach $270 to $290 million, and diluted earnings per share are expected to be $0.56 to $0.60.
Positive Outlook
- Currency-neutral revenue is expected to be up at a mid-single-digit percentage rate.
- Selling, general & administrative expenses are expected to be down slightly against the prior year.
- Tax valuation allowance release expected to be realized during the fiscal year.
- Capital expenditures remain unchanged from an expectation of approximately $225 million.
- Company manages costs amid uncertain market conditions.
Challenges Ahead
- Revenue is expected to grow at a low single-digit percentage rate compared to the previous expectation of 5 to 7 percent growth.
- Gross margin remains unchanged from the previous outlook of a 375 to 425 basis point decline.
- Operating income is expected to reach $270 to $290 million compared to the previous range of $300 to $325 million.
- Diluted earnings per share is expected to be $0.56 to $0.60 compared to the previous expectation of $0.61 to $0.67.
- Challenging retail environment and additional negative impacts from changes in foreign currency.
Revenue & Expenses
Visualization of income flow from segment revenue to net income