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Under Armour
🇺🇸 NYSE:UA
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Sep 30, 2023

Under Armour Q2 2024 Earnings Report

Under Armour's second quarter results exceeded expectations, particularly profitability, while revenue was flat year-over-year.

Key Takeaways

Under Armour reported flat revenue year-over-year at $1.6 billion for the second quarter of fiscal year 2024, with a 260 basis points increase in gross margin to 48.0%. Operating income was $146 million, and net income reached $110 million, resulting in diluted earnings per share of $0.24. The company is maintaining its fiscal 2024 operating income and EPS outlook despite lowering revenue expectations.

Revenue was flat compared to the prior year at $1.6 billion (down 1% currency neutral).

Gross margin increased 260 basis points to 48.0%, driven by supply chain benefits.

Operating income was $146 million.

Net income was $110 million, with diluted earnings per share at $0.24.

Total Revenue
$1.57B
Previous year: $1.57B
-0.4%
EPS
$0.24
Previous year: $0.2
+20.0%
Gross Profit
$752M
Previous year: $714M
+5.3%
Cash and Equivalents
$656M
Previous year: $854M
-23.2%
Free Cash Flow
$18.7M
Total Assets
$4.75B
Previous year: $4.77B
-0.5%

Under Armour

Under Armour

Under Armour Revenue by Segment

Under Armour Revenue by Geographic Location

Forward Guidance

Under Armour's fiscal year 2024 outlook includes revenue expected to be down 2 to 4 percent, gross margin expected to be up 100 to 125 basis points, and selling, general & administrative expenses expected to be flat to down slightly. Operating income and diluted earnings per share remain unchanged.

Positive Outlook

  • Gross margin is expected to be up 100 to 125 basis points.
  • Selling, general & administrative expenses are expected to be flat to down slightly.
  • Operating income remains unchanged from the previous expectation of $310 million to $330 million.
  • Effective tax rate remains unchanged from the previous expectation of a low twenties percentage range.
  • Diluted earnings per share remain unchanged from the previous expectation of between $0.47 and $0.51.

Challenges Ahead

  • Revenue is expected to be down 2 to 4 percent versus the previous expectation of flat to up slightly.
  • Challenges in North America during the back half of the year.
  • Lowered revenue expectations.
  • Capital expenditures are now expected to reach between $230 million and $250 million.
  • Taking steps to invest in the talent, systems, and processes to drive the top line growth over the long term.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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