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Under Armour
🇺🇸 NYSE:UA
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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.

Total Revenue
$1.55B
Previous year: $1.43B
+7.9%
EPS
$0.31
Previous year: $0.26
+19.2%
Gross Margin
51%
Gross Profit
$788M
Previous year: $686M
+14.8%
Cash and Equivalents
$1.3B
Previous year: $866M
+50.2%
Free Cash Flow
$78.1M
Previous year: $38.9M
+100.7%
Total Assets
$4.82B
Previous year: $4.86B
-0.8%

Under Armour

Under Armour

Under Armour Revenue by Segment

Under Armour 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.
  • Potential material impacts on Under Armour’s full-year business results in 2021, as well as future periods.
  • Impacts on global supply chains and logistics.
  • Sale of the MyFitnessPal platform.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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