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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.
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'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