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Mar 31, 2023
Under Armour Q4 2023 Earnings Report
Under Armour reported fourth quarter and full-year fiscal 2023 results, providing initial fiscal 2024 outlook.
Key Takeaways
Under Armour's Q4 2023 revenue increased by 8% to $1.4 billion, with a diluted EPS of $0.38. The company's fiscal 2023 revenue and earnings results were in line with the previous outlook.
Revenue was up 8 percent to $1.4 billion (up 10 percent currency neutral).
Wholesale revenue increased 10 percent to $909 million, and direct-to-consumer revenue increased 3 percent to $454 million.
North America revenue increased 3 percent to $862 million, and international revenue increased 16 percent to $526 million (up 21 percent currency neutral).
Diluted earnings per share was $0.38. Adjusted diluted earnings per share was $0.18.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Under Armour's fiscal year 2024 outlook includes revenue expected to be flat to up slightly, gross margin expected to be up 25 to 75 basis points, and diluted earnings per share expected to be between $0.47 and $0.51.
Positive Outlook
- Revenue is expected to be flat to up slightly.
- Gross margin is expected to be up 25 to 75 basis points compared to the prior year’s rate of 44.9 percent, driven by supply chain tailwinds related to lower freight costs.
- Selling, general & administrative expenses are expected to be flat to up slightly.
- Operating income is expected to reach $310 to $330 million.
- Effective tax rate is expected to be in the low twenties percentage range.
Challenges Ahead
- Gross margin increase is partially offset by mix impacts related to higher off-price revenue and higher promotions expected in the company’s direct-to-consumer business.
- Capital expenditures are expected to be between $250 and $270 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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