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Sep 30, 2021
Under Armour Q3 2021 Earnings Report
Reported strong demand and executed quickly to meet consumer needs.
Key Takeaways
Under Armour reported an 8% increase in revenue to $1.5 billion, driven by strong demand and effective execution. The company raised its full-year outlook, expecting record revenue and earnings results in 2021.
Revenue increased by 8% to $1.5 billion, or 6% on a currency-neutral basis.
Wholesale revenue grew by 10% to $911 million, while direct-to-consumer revenue increased by 12% to $604 million.
North America revenue increased by 8% to $1.0 billion, and international revenue rose by 18% to $510 million.
Diluted earnings per share was $0.24. Adjusted diluted earnings per share was $0.31.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Under Armour updated its full-year 2021 outlook, expecting revenue to be up approximately 25 percent. Diluted earnings per share is expected to reach approximately $0.55 and adjusted diluted earnings per share is expected to reach approximately $0.74.
Positive Outlook
- Revenue is expected to be up approximately 25 percent compared to the previous expectation of a low-twenties percentage increase.
- North America is expected to have a high-twenties percentage growth rate.
- The international business is expected to have a mid-thirties percentage growth rate.
- Gross margin is expected to increase approximately 130 basis points compared to the previous expectation of an approximate 50 to 70 basis point improvement versus the prior year adjusted gross margin of 48.6 percent.
- Operating income is expected to reach approximately $425 million compared to the previous range of $215 million to $225 million.
Challenges Ahead
- Expected higher freight expenses.
- Continued uncertainty related to COVID-19.
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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