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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.
Revenue by Segment
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.
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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