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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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