Loading...
•
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.
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.comCorporate Other 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 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.
- A low-single digit percent decline in its international business.
- Lower wholesale channel demand.
- Inconsistent execution across the business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income