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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.
Revenue by Segment
Revenue by Geographic Location
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.
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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