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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.
Revenue by Segment
Revenue by Geographic Location
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.
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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