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Dec 31, 2022
Under Armour Q3 2023 Earnings Report
Under Armour's Q3 2023 results were solid, achieving full-year operational and financial goals.
Key Takeaways
Under Armour reported a 3% increase in revenue to $1.6 billion, with wholesale revenue up 7% and direct-to-consumer revenue down 1%. North America revenue decreased by 2%, while international revenue increased by 14%. Diluted earnings per share was $0.27, and adjusted diluted earnings per share was $0.16.
Revenue increased by 3 percent to $1.6 billion, or 7 percent on a currency-neutral basis.
Wholesale revenue grew by 7 percent to $820 million.
Direct-to-consumer revenue declined by 1 percent to $715 million.
International revenue increased by 14 percent to $527 million.
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 updated its fiscal year 2023 outlook, maintaining revenue growth expectations and adjusting gross margin and SG&A expense forecasts.
Positive Outlook
- Revenue growth is unchanged from the previous expectation of a low single-digit percentage rate increase on a reported basis, up at a mid-single-digit percentage rate on a currency-neutral basis.
- Selling, general & administrative expenses are now expected to be down at a low single-digit percentage rate against the prior year versus the previous expectation of “down slightly.”
- Operating income remains unchanged from the previous outlook and is expected to reach $270 to $290 million. Excluding the company's litigation reserve, adjusted operating income is expected to reach $290 to $310 million.
- Adjusted diluted earnings per share is now expected to be $0.52 to $0.56 versus the previously expected range of $0.44 to $0.48.
- Capital expenditures are now expected to be approximately $200 million, down from the previous expectation of approximately $225 million.
Challenges Ahead
- Gross margin is expected to decline at the higher end of the previously provided 375 to 425 basis point range.
Revenue & Expenses
Visualization of income flow from segment revenue to net income