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Mar 31, 2024
Under Armour Q4 2024 Earnings Report
Under Armour's financial performance aligned with previous outlook amidst a challenging retail environment.
Key Takeaways
Under Armour reported a 5% decrease in revenue to $1.3 billion for Q4 2024, with North America down 10% and international up 7%. The company demonstrated disciplined expense control and maintained a strong balance sheet with a solid cash position and healthy inventory levels.
Revenue decreased by 5 percent to $1.3 billion.
North America revenue decreased by 10 percent to $772 million, while international revenue increased by 7 percent to $561 million.
Gross margin increased 170 basis points to 45.0 percent, driven primarily by supply chain benefits.
Net Income was $7 million, with adjusted net income at $49 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Under Armour expects revenue to be down at a low-double-digit percentage rate in fiscal year 2025, including a 15 to 17 percent decline in North America. Gross margin is expected to be up 75 to 100 basis points. Operating income is expected to be $50 to $70 million, and adjusted operating income is expected to be $130 to $150 million. Diluted earnings per share is expected to be between $0.02 and $0.05, with adjusted diluted earnings per share between $0.18 and $0.21.
Positive Outlook
- Gross margin is expected to be up 75 to 100 basis points compared to the prior year.
- Reduction in promotional and discounting activities in the company’s direct-to-consumer business.
- Product costing benefits are expected.
- Selling, general and administrative expenses are expected to be down 2 to 4 percent.
- Focus on cost management and implementing strategies to grow the brand and improve shareholder value.
Challenges Ahead
- Revenue is expected to be down at a low-double-digit percentage rate.
- An expected 15 to 17 percent decline in North America.
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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