Loading...
•
Sep 30, 2020
Under Armour Q3 2020 Earnings Report
Under Armour's Q3 2020 results reflected better-than-expected performance due to higher demand and strong execution.
Key Takeaways
Under Armour reported flat revenue at $1.4 billion compared to the prior year. North America revenue decreased by 5%, while international revenue increased by 18%. Diluted earnings per share was $0.09, and adjusted diluted earnings per share was $0.26.
Revenue was flat at $1.4 billion compared to the prior year.
North America revenue decreased 5% to $963 million.
International revenue increased 18% to $433 million.
Diluted earnings per share was $0.09 and adjusted diluted earnings per share was $0.26.
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.comLicensing Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia-Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Due to ongoing uncertainty related to COVID-19, the company expects material impacts on its business results for the remainder of 2020 and into 2021.
Positive Outlook
- Revenue is expected to be down at a high-teen percentage rate compared to 2019 results.
- For the fourth quarter, the company now expects revenue to be down at a low-teen percentage rate, versus the previous down 20 to 25 percent expectation.
- Gross margin is expected to be up 20 to 40 basis points versus 2019 due to channel mix benefits and supply chain efficiencies.
- Capital expenditures are planned at approximately $80 million compared to $144 million in 2019.
- The vast majority of locations where Under Armour is sold are now open.
Challenges Ahead
- Revenue is expected to be down at a high-teen percentage rate compared to 2019 results, reflecting a low twenties percentage rate decline in North America and a high-single-digit percentage rate decline within the international business.
- Expected year-end timing impacts from COVID-19, related to customer order flow and changes in supply chain timing resulting in more planned spring product deliveries in early 2021 versus late 2020.
- An anticipated substantial decline in licensing revenue due to lower contractual royalty minimums and contract settlements realized in the prior year.
- Lower planned excess inventory sales to the off-price channel.
- For the fourth quarter, the company anticipates meaningful gross margin pressure primarily related to expectations around a more promotional environment relative to the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income