Loading...
•
Dec 31, 2020
Under Armour Q4 2020 Earnings Report
Under Armour's performance exceeded expectations due to improved brand strength and consistent operational execution.
Key Takeaways
Under Armour reported a decrease in revenue by 3% to $1.4 billion for Q4 2020. Despite the revenue decrease, the company saw growth in direct-to-consumer revenue, driven by eCommerce, and an increase in gross margin. Net income was $184 million, with diluted earnings per share at $0.40.
Revenue decreased by 3 percent to $1.4 billion.
Direct-to-consumer revenue increased 11 percent, driven by 25 percent growth in eCommerce.
Gross margin increased 210 basis points to 49.4 percent.
Net income was $184 million, and diluted earnings per share was $0.40.
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.comLicensing 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 anticipates a high-single-digit percentage increase in revenue for 2021, driven by growth in both North America and international markets. Gross margin is expected to increase slightly, with operating income projected to reach $5 million to $25 million. Diluted loss per share is expected to be about $0.18 to $0.20, while adjusted diluted earnings per share are projected to be in the range of $0.12 to $0.14.
Positive Outlook
- Revenue is expected to be up at a high-single-digit percentage rate.
- High single-digit growth rate in North America.
- High-teens growth rate in the international business.
- Gross margin is expected to be up slightly versus the prior year adjusted gross margin rate of 48.6%.
- Adjusted operating income is expected to reach $130 million to $150 million.
Challenges Ahead
- Ongoing impacts related to COVID-19.
- Sale of MyFitnessPal, which was a high gross margin business.
- Operating income is expected to reach $5 million to $25 million.
- Diluted loss per share is expected to be about $0.18 to $0.20.
- Ongoing uncertainty related to COVID-19 and its potential effect on global markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income