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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.
Revenue by Segment
Revenue by Geographic Location
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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