BALTIMORE, Feb. 8, 2024
/PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) announced
unaudited financial results for its third quarter fiscal 2024,
which ended December 31, 2023.
The company reports its financial performance following accounting
principles generally accepted in the
United States of America ("GAAP"). This press release refers
to "currency neutral" and "adjusted" amounts, which are non-GAAP
financial measures described below under the "Non-GAAP Financial
Information" paragraph.
"Despite a mixed retail environment during the holiday season,
our third quarter revenue results were in line with our
expectations; we were able to deliver better than anticipated
profitability and remain on track to achieve our full-year
outlook," said Under Armour President and CEO Stephanie Linnartz. "As we close out fiscal 2024
and our strengthened leadership team begins to come up to speed in
the quarters ahead – we are working to reset Under Armour toward a
path of improved revenue growth and enhanced value creation in the
future."
Third Quarter Fiscal 2024 Review
- Revenue was down 6 percent to $1.5 billion (down 7 percent currency neutral).
- Wholesale revenue decreased 13 percent to $712 million, and direct-to-consumer revenue
increased 4 percent to $741 million
due to a 5 percent increase in owned and operated store revenue and
a 2 percent increase in eCommerce revenue, which represented 45
percent of the total direct-to-consumer business in the
quarter.
- North America revenue
decreased 12 percent to $915 million,
and international revenue increased 7 percent to $566 million (up 4 percent currency neutral). In
the international business, revenue increased 7 percent in EMEA (up
2 percent currency neutral), 7 percent in Asia-Pacific (up 8 percent currency neutral),
and 9 percent in Latin America (up
3 percent currency neutral).
- Apparel revenue decreased 6 percent to $1 billion. Footwear revenue was down 7 percent
to $331 million. Accessories revenue
was flat at $105 million.
- Gross margin increased 100 basis points to 45.2 percent,
driven primarily by supply chain benefits related to lower freight
expenses, partially offset by proactive inventory management
actions, including a higher percentage of sales to the off-price
channel and increased promotional activities in our
direct-to-consumer business.
- Selling, general & administrative expenses were flat
year over year at $602 million,
including a $23 million litigation
reserve expense. Adjusted selling, general &
administrative expenses were down 4 percent to $579 million.
- Operating income was $70
million. Adjusted operating income was $92 million.
- Net Income was $114
million. Excluding a $50
million earn-out benefit in connection with the sale of the
MyFitnessPal platform, the litigation reserve expense, and related
tax impacts, the adjusted net income was $84 million.
- Diluted earnings per share was $0.26. Adjusted diluted earnings per share
was $0.19.
- Inventory was down 9 percent to $1.1 billion.
- Cash and Cash Equivalents were $1
billion at the end of the quarter, and no borrowings were
outstanding under the company's $1.1
billion revolving credit facility.
Share Buyback Update
Under Armour repurchased $25
million of its Class C common stock during the third
quarter, reflecting 3.1 million shares retired. As of December 31, 2023, 45.6 million shares for
$500 million had been repurchased,
which concluded the company's two-year program, approved by the
Board of Directors in February
2022.
Updated Fiscal 2024 Outlook
Key points related to Under Armour's fiscal year 2024 outlook
include:
- Revenue is expected to be down 3 to 4 percent,
tightening the previous expectation of a 2 to 4 percent
decline.
- Gross margin is expected to be up 120 to 130 basis
points, an increase from the prior expectation of a 100 to 125
basis point increase.
- Selling, general & administrative expenses are
unchanged from the previous expectation of "flat to down
slightly."
- Operating income is expected to reach $287 million to $297
million. Excluding the company's litigation reserve,
adjusted operating income is expected to be $310 million to $320
million.
- Diluted earnings per share is expected to be
$0.57 to $0.59 which includes $0.12 of after-tax benefit from the company's
final earn-out in connection with the sale of the MyFitnessPal
platform and $0.05 of negative impact
from the company's litigation reserve. Excluding these net positive
impacts of $0.07, the company expects
its adjusted diluted earnings per share to be $0.50 to $0.52.
- Capital expenditures are now expected to reach between
$210 million and $230 million versus the previous expectation of
$230 million and $250 million.
Conference Call and Webcast
Under Armour will hold its third quarter fiscal 2024
conference call today at approximately 8:30
a.m. Eastern Time. The call will be webcast live at
https://about.underarmour.com/investor-relations/financials and
will be archived and available for replay about three hours after
the live event.
Non-GAAP Financial Information
This press release refers to "currency neutral" and "adjusted"
results, as well as "adjusted" forward-looking estimates of the
company's results for its 2024 fiscal year ending March 31, 2024. Management believes this
information is helpful to investors to compare the company's
results of operations period-over-period because it enhances
visibility into its actual underlying results, excluding these
impacts. Currency-neutral financial information is calculated to
exclude changes in foreign currency exchange rates. References to
adjusted financial measures exclude the effect of the company's
litigation reserve expense and any gain or loss from
divestitures (including associated earn-outs and expenses) and
related tax effects. Management believes these adjustments are not
core to the company's operations. The reconciliation of non-GAAP
amounts to the most directly comparable financial measure
calculated according to GAAP is presented in supplemental financial
information furnished with this release. All per-share amounts are
reported on a diluted basis. These supplemental non-GAAP financial
measures should not be considered in isolation. They should be
contemplated in addition to, and not as an alternative to, the
company's reported results prepared per GAAP. Additionally, the
company's non-GAAP financial information may not be comparable to
similarly titled measures reported by other companies.
About Under Armour, Inc.
Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor,
marketer, and distributor of branded athletic performance apparel,
footwear, and accessories. Designed to empower human performance,
Under Armour's innovative products and experiences are engineered
to make athletes better. For further information, please visit
http://about.underarmour.com.
Forward-Looking Statements
Some of the statements contained in this press release
constitute forward-looking statements. Forward-looking statements
relate to expectations, beliefs, projections, plans and strategies,
anticipated events or trends, and similar expressions concerning
matters that are not historical facts, such as statements regarding
our future financial condition or results of operations, our
prospects and strategies for future growth, expectations regarding
promotional activities, freight, product cost pressures, and
foreign currency impacts, the impact of global economic conditions
and inflation on our results of operations, our liquidity and use
of capital resources, the development and introduction of new
products, the implementation of our marketing and branding
strategies, the future benefits and opportunities from significant
investments, and the impact of litigation or other proceedings. In
many cases, you can identify forward-looking statements by terms
such as "may," "will," "should," "could," "expects," "plans,"
"anticipates," "believes," "estimates," "predicts," "outlook,"
"potential" or the negative of these terms or other comparable
terminology. The forward-looking statements in this press release
reflect our current views about future events. They are subject to
risks, uncertainties, assumptions, and circumstances that may cause
events or our actual activities or results to differ significantly
from those expressed in any forward-looking statement. Although we
believe the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future events,
results, actions, activity levels, performance, or achievements.
Readers are cautioned not to place undue reliance on these
forward-looking statements. A number of important factors could
cause actual results to differ materially from those indicated by
these forward-looking statements, including, but not limited to:
changes in general economic or market conditions, including
inflation, that could affect overall consumer spending in our
industry; the impact of the COVID-19 pandemic on our industry
and our business, financial condition and results of operations,
including impacts on the global supply chain; failure of our
suppliers, manufacturers or logistics providers to produce or
deliver our products in a timely or cost-effective
manner; labor or other disruptions at ports or our suppliers
or manufacturers; increased competition causing us to lose market
share or reduce the prices of our products or to increase our
marketing efforts significantly; fluctuations in the costs of
raw materials and commodities we use in our products and costs
related to our supply chain (including labor); changes to the
financial health of our customers; our ability to successfully
execute our long-term strategies; our ability to effectively
develop and launch new, innovative and updated products; our
ability to accurately forecast consumer shopping and engagement
preferences and consumer demand for our products and manage our
inventory in response to changing demands; loss of key
customers, suppliers or manufacturers; our ability to effectively
market and maintain a positive brand image; our ability to further
expand our business globally and to drive brand awareness and
consumer acceptance of our products in other countries; our
ability to manage the increasingly complex operations of our global
business; the impact of global events beyond our control,
including military conflicts; our ability to successfully manage or
realize expected results from significant transactions and
investments; our ability to effectively meet the expectations
of our stakeholders with respect to environmental, social and
governance practices; the availability, integration and effective
operation of information systems and other technology, as well as
any potential interruption of such systems or technology; any
disruptions, delays or deficiencies in the design, implementation
or application of our global operating and financial reporting
information technology system; our ability to attract key
talent and retain the services of our senior management and other
key employees; our ability to effectively drive operational
efficiency in our business; our ability to access capital and
financing required to manage our business on terms acceptable to
us; our ability to accurately anticipate and respond to
seasonal or quarterly fluctuations in our operating
results; risks related to foreign currency exchange rate
fluctuations; our ability to comply with existing trade and
other regulations, and the potential impact of new trade, tariff
and tax regulations on our profitability; risks related to
data security or privacy breaches; and our potential exposure
to and the financial impact of litigation and other
proceedings. The forward-looking statements here reflect our
views and assumptions only as of the date of this press release. We
undertake no obligation to update any forward-looking statement to
reflect events or circumstances after the statement's date or to
reflect unanticipated events.
|
Under Armour,
Inc.
For the Three and Nine
Months Ended December 31, 2023, and 2022
(Unaudited; in
thousands, except per share amounts)
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATION
|
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
in '000s
|
|
2023
|
|
% of Net
Revenues
|
|
2022
|
|
% of Net
Revenues
|
|
2023
|
|
% of Net
Revenues
|
|
2022
|
|
% of Net
Revenues
|
|
Net revenues
|
|
$
1,486,095
|
|
100.0 %
|
|
$
1,581,781
|
|
100.0 %
|
|
$
4,369,817
|
|
100.0 %
|
|
$
4,504,723
|
|
100.0 %
|
|
Cost of goods
sold
|
|
814,914
|
|
54.8 %
|
|
883,376
|
|
55.8 %
|
|
2,338,905
|
|
53.5 %
|
|
2,462,287
|
|
54.7 %
|
|
Gross
profit
|
|
671,181
|
|
45.2 %
|
|
698,405
|
|
44.2 %
|
|
2,030,912
|
|
46.5 %
|
|
2,042,436
|
|
45.3 %
|
|
Selling, general and
administrative expenses
|
|
601,661
|
|
40.5 %
|
|
603,746
|
|
38.2 %
|
|
1,794,703
|
|
41.1 %
|
|
1,793,884
|
|
39.8 %
|
|
Income (loss) from
operations
|
|
69,520
|
|
4.7 %
|
|
94,659
|
|
6.0 %
|
|
236,209
|
|
5.4 %
|
|
248,552
|
|
5.5 %
|
|
Interest income
(expense), net
|
|
(211)
|
|
— %
|
|
(1,615)
|
|
(0.1) %
|
|
(2,210)
|
|
(0.1) %
|
|
(11,175)
|
|
(0.2) %
|
|
Other income (expense),
net
|
|
49,636
|
|
3.3 %
|
|
47,312
|
|
3.0 %
|
|
36,822
|
|
0.8 %
|
|
27,300
|
|
0.6 %
|
|
Income (loss) before
income taxes
|
|
118,945
|
|
8.0 %
|
|
140,356
|
|
8.9 %
|
|
270,821
|
|
6.2 %
|
|
264,677
|
|
5.9 %
|
|
Income tax expense
(benefit)
|
|
4,999
|
|
0.3 %
|
|
18,811
|
|
1.2 %
|
|
38,464
|
|
0.9 %
|
|
46,719
|
|
1.0 %
|
|
Income (loss) from
equity method investments
|
|
197
|
|
— %
|
|
72
|
|
— %
|
|
(51)
|
|
— %
|
|
(1,734)
|
|
— %
|
|
Net income
(loss)
|
|
$ 114,143
|
|
7.7 %
|
|
$ 121,617
|
|
7.7 %
|
|
$ 232,306
|
|
5.3 %
|
|
$ 216,224
|
|
4.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per share of Class A, B and
C common stock
|
|
$
0.26
|
|
|
|
$
0.27
|
|
|
|
$
0.53
|
|
|
|
$
0.48
|
|
|
|
Diluted net income
(loss) per share of Class A, B and
C common stock
|
|
$
0.26
|
|
|
|
$
0.27
|
|
|
|
$
0.52
|
|
|
|
$
0.47
|
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
|
|
|
|
|
|
|
|
|
Basic
|
|
437,314
|
|
|
|
448,833
|
|
|
|
441,893
|
|
|
|
453,840
|
|
|
|
Diluted
|
|
448,435
|
|
|
|
458,990
|
|
|
|
452,208
|
|
|
|
463,750
|
|
|
|
Under Armour,
Inc.
For the Three and Nine
Months Ended December 31, 2023, and 2022
(Unaudited; in
thousands)
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
in '000s
|
|
|
2023
|
|
2022
|
|
% Change
|
|
2023
|
|
2022
|
|
% Change
|
|
Apparel
|
|
|
$
1,016,707
|
|
$
1,075,714
|
|
(5.5) %
|
|
$
2,911,804
|
|
$
2,982,410
|
|
(2.4) %
|
|
Footwear
|
|
|
331,000
|
|
354,389
|
|
(6.6) %
|
|
1,045,872
|
|
1,077,525
|
|
(2.9) %
|
|
Accessories
|
|
|
104,510
|
|
104,875
|
|
(0.3) %
|
|
316,305
|
|
312,823
|
|
1.1 %
|
|
Net
Sales
|
|
|
1,452,217
|
|
1,534,978
|
|
(5.4) %
|
|
4,273,981
|
|
4,372,758
|
|
(2.3) %
|
|
Licensing
revenues
|
|
|
29,069
|
|
29,734
|
|
(2.2) %
|
|
82,787
|
|
90,992
|
|
(9.0) %
|
|
Corporate Other
(1)
|
|
|
4,809
|
|
17,069
|
|
(71.8) %
|
|
13,049
|
|
40,973
|
|
(68.2) %
|
|
Total net
revenues
|
|
|
$
1,486,095
|
|
$
1,581,781
|
|
(6.0) %
|
|
$
4,369,817
|
|
$
4,504,723
|
|
(3.0) %
|
|
|
NET REVENUES BY
DISTRIBUTION CHANNEL
|
|
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
in '000s
|
|
|
2023
|
|
2022
|
|
% Change
|
|
2023
|
|
2022
|
|
% Change
|
|
Wholesale
|
|
|
$
711,699
|
|
$
819,781
|
|
(13.2) %
|
|
$
2,393,382
|
|
$
2,559,621
|
|
(6.5) %
|
|
Direct-to-consumer
|
|
|
740,518
|
|
715,197
|
|
3.5 %
|
|
1,880,599
|
|
1,813,137
|
|
3.7 %
|
|
Net
Sales
|
|
|
1,452,217
|
|
1,534,978
|
|
(5.4) %
|
|
4,273,981
|
|
4,372,758
|
|
(2.3) %
|
|
License
revenues
|
|
|
29,069
|
|
29,734
|
|
(2.2) %
|
|
82,787
|
|
90,992
|
|
(9.0) %
|
|
Corporate Other
(1)
|
|
|
4,809
|
|
17,069
|
|
(71.8) %
|
|
13,049
|
|
40,973
|
|
(68.2) %
|
|
Total net
revenues
|
|
|
$
1,486,095
|
|
$
1,581,781
|
|
(6.0) %
|
|
$
4,369,817
|
|
$
4,504,723
|
|
(3.0) %
|
|
|
NET REVENUES BY
SEGMENT
|
|
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
in '000s
|
|
|
2023
|
|
2022
|
|
% Change
|
|
2023
|
|
2022
|
|
% Change
|
|
North
America
|
|
|
$
915,387
|
|
$
1,037,637
|
|
(11.8) %
|
|
$
2,733,432
|
|
$
2,958,816
|
|
(7.6) %
|
|
EMEA
|
|
|
284,049
|
|
265,250
|
|
7.1 %
|
|
797,781
|
|
733,110
|
|
8.8 %
|
|
Asia-Pacific
|
|
|
212,018
|
|
198,021
|
|
7.1 %
|
|
646,315
|
|
600,415
|
|
7.6 %
|
|
Latin
America
|
|
|
69,832
|
|
63,804
|
|
9.4 %
|
|
179,240
|
|
171,409
|
|
4.6 %
|
|
Corporate Other
(1)
|
|
|
4,809
|
|
17,069
|
|
(71.8) %
|
|
13,049
|
|
40,973
|
|
(68.2) %
|
|
Total net
revenues
|
|
|
$
1,486,095
|
|
$
1,581,781
|
|
(6.0) %
|
|
$
4,369,817
|
|
$
4,504,723
|
|
(3.0) %
|
|
|
(1) Corporate Other
primarily includes net revenues from foreign currency hedge gains
and losses generated by entities within the Company's operating
segments but managed through the Company's central foreign exchange
risk management program, as well as subscription revenues from the
Company's MapMyRun and MapMyRide platforms (collectively "MMR") and
revenue from other digital business opportunities.
|
|
Under Armour,
Inc.
For the Three and Nine
Months Ended December 31, 2023, and 2022
(Unaudited; in
thousands)
INCOME (LOSS) FROM
OPERATIONS BY SEGMENT
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
in '000s
|
2023
|
% of Net
Revenues (2)
|
|
2022
|
% of Net
Revenues (2)
|
|
2023
|
% of Net
Revenues (2)
|
|
2022
|
% of Net
Revenues (2)
|
|
North
America
|
$
161,663
|
17.7 %
|
|
$
198,919
|
19.2 %
|
|
$
535,171
|
19.6 %
|
|
$
598,049
|
20.2 %
|
|
EMEA
|
51,635
|
18.2 %
|
|
30,947
|
11.7 %
|
|
123,281
|
15.5 %
|
|
85,023
|
11.6 %
|
|
Asia-Pacific
|
16,014
|
7.6 %
|
|
10,811
|
5.5 %
|
|
86,020
|
13.3 %
|
|
76,890
|
12.8 %
|
|
Latin
America
|
13,569
|
19.4 %
|
|
5,805
|
9.1 %
|
|
32,990
|
18.4 %
|
|
19,216
|
11.2 %
|
|
Corporate Other
(1)
|
(173,361)
|
NM
|
|
(151,823)
|
NM
|
|
(541,253)
|
NM
|
|
(530,626)
|
NM
|
|
Income (loss) from
operations
|
$ 69,520
|
4.7 %
|
|
$ 94,659
|
6.0 %
|
|
$
236,209
|
5.4 %
|
|
$
248,552
|
5.5 %
|
|
|
(1) Corporate Other
primarily includes net revenues from foreign currency hedge gains
and losses generated by entities within the Company's operating
segments but managed through the Company's central foreign exchange
risk management program, as well as subscription revenues from the
Company's MapMyRun and MapMyRide platforms (collectively "MMR") and
revenue from other digital business opportunities. Corporate Other
also includes expenses related to the Company's central supporting
functions.
|
|
|
(2)
The percentage of operating income (loss) is calculated based on
total segment net revenues. The operating income (loss) percentage
for Corporate Other is not presented as a meaningful metric
(NM).
|
|
Under Armour,
Inc.
As of December 31,
2023, and March 31, 2023
(Unaudited; in
thousands)
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
in '000s
|
|
December 31,
2023
|
|
March 31,
2023
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,040,090
|
|
$
711,910
|
|
Accounts receivable,
net
|
|
691,546
|
|
759,860
|
|
Inventories
|
|
1,104,027
|
|
1,190,253
|
|
Prepaid expenses and
other current assets, net
|
|
287,153
|
|
297,563
|
|
Total current
assets
|
|
3,122,816
|
|
2,959,586
|
|
Property and equipment,
net
|
|
714,183
|
|
672,736
|
|
Operating lease
right-of-use assets
|
|
456,201
|
|
489,306
|
|
Goodwill
|
|
481,573
|
|
481,992
|
|
Intangible assets,
net
|
|
8,002
|
|
8,940
|
|
Deferred income
taxes
|
|
210,600
|
|
186,167
|
|
Other long-term
assets
|
|
51,131
|
|
58,356
|
|
Total
assets
|
|
$
5,044,506
|
|
$
4,857,083
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
80,919
|
|
$
—
|
|
Accounts
payable
|
|
699,431
|
|
649,116
|
|
Accrued
expenses
|
|
322,780
|
|
354,643
|
|
Customer refund
liabilities
|
|
160,786
|
|
160,533
|
|
Operating lease
liabilities
|
|
143,425
|
|
140,990
|
|
Other current
liabilities
|
|
58,841
|
|
51,609
|
|
Total current
liabilities
|
|
1,466,182
|
|
1,356,891
|
|
Long-term debt, net of
current maturities
|
|
595,124
|
|
674,478
|
|
Operating lease
liabilities, non-current
|
|
654,216
|
|
705,713
|
|
Other long-term
liabilities
|
|
155,964
|
|
121,598
|
|
Total
liabilities
|
|
2,871,486
|
|
2,858,680
|
|
Total stockholders'
equity
|
|
2,173,020
|
|
1,998,403
|
|
Total liabilities
and stockholders' equity
|
|
$
5,044,506
|
|
$
4,857,083
|
|
Under Armour,
Inc.
For the Nine Months
Ended December 31, 2023 and 2022
(Unaudited; in
thousands)
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Nine Months Ended
December 31,
|
|
in '000s
|
2023
|
|
2022
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
$
232,306
|
|
$
216,224
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities
|
|
|
|
|
Depreciation and
amortization
|
106,685
|
|
102,656
|
|
Unrealized foreign
currency exchange rate (gain) loss
|
(904)
|
|
(19,424)
|
|
Loss on disposal of
property and equipment
|
746
|
|
1,411
|
|
Amortization of bond
premium and debt issuance costs
|
1,565
|
|
1,644
|
|
Stock-based
compensation
|
33,163
|
|
29,362
|
|
Deferred income
taxes
|
(24,430)
|
|
(132)
|
|
Changes in reserves
and allowances
|
25,085
|
|
7,316
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
55,912
|
|
1,026
|
|
Inventories
|
71,400
|
|
(401,551)
|
|
Prepaid expenses and
other assets
|
(45,363)
|
|
(68,931)
|
|
Other non-current
assets
|
42,149
|
|
(46,272)
|
|
Accounts
payable
|
31,470
|
|
168,681
|
|
Accrued expenses and
other liabilities
|
(42,630)
|
|
50,892
|
|
Customer refund
liabilities
|
80
|
|
12,440
|
|
Income taxes payable
and receivable
|
5,884
|
|
19,057
|
|
Net cash provided by
(used in) operating activities
|
493,118
|
|
74,399
|
|
Cash flows from
investing activities
|
|
|
|
|
Purchases of property
and equipment
|
(132,796)
|
|
(147,620)
|
|
Earn-out from the sale
of the MyFitnessPal platform
|
45,000
|
|
35,000
|
|
Net cash provided by
(used in) investing activities
|
(87,796)
|
|
(112,620)
|
|
Cash flows from
financing activities
|
|
|
|
|
Common shares
repurchased
|
(75,000)
|
|
(125,000)
|
|
Employee taxes paid for
shares withheld for income taxes
|
(2,428)
|
|
(868)
|
|
Proceeds from exercise
of stock options and other stock issuances
|
2,443
|
|
2,809
|
|
Net cash provided by
(used in) financing activities
|
(74,985)
|
|
(123,059)
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
136
|
|
3,205
|
|
Net increase in
(decrease in) cash, cash equivalents and restricted cash
|
330,473
|
|
(158,075)
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
Beginning of
period
|
727,726
|
|
1,022,126
|
|
End of
period
|
$
1,058,199
|
|
$
864,051
|
|
Under Armour,
Inc.
For the Three and Nine
Months Ended December 31, 2023
(Unaudited)
The table below
presents the reconciliation of net revenue growth (decline)
calculated according to GAAP to currency-neutral net revenue, a
non-GAAP measure. See "Non-GAAP Financial Information" above for
further information regarding the Company's use of non-GAAP
financial measures.
CURRENCY-NEUTRAL NET
REVENUE GROWTH (DECLINE) RECONCILIATION
|
|
|
Three Months Ended
December 31, 2023
|
|
Nine Months Ended
December 31, 2023
|
|
Total Net
Revenue
|
|
|
|
|
Net revenue growth -
GAAP
|
(6.0) %
|
|
(3.0) %
|
|
Foreign exchange
impact
|
(1.1) %
|
|
(0.2) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
(7.1) %
|
|
(3.2) %
|
|
|
|
|
|
North
America
|
|
|
|
|
Net revenue growth -
GAAP
|
(11.8) %
|
|
(7.6) %
|
|
Foreign exchange
impact
|
— %
|
|
0.3 %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
(11.8) %
|
|
(7.3) %
|
|
|
|
|
|
EMEA
|
|
|
|
|
Net revenue growth -
GAAP
|
7.1 %
|
|
8.8 %
|
|
Foreign exchange
impact
|
(5.1) %
|
|
(3.5) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
2.0 %
|
|
5.3 %
|
|
|
|
|
|
Asia-Pacific
|
|
|
|
|
Net revenue growth -
GAAP
|
7.1 %
|
|
7.6 %
|
|
Foreign exchange
impact
|
0.4 %
|
|
3.5 %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
7.5 %
|
|
11.1 %
|
|
|
|
|
|
Latin
America
|
|
|
|
|
Net revenue growth -
GAAP
|
9.4 %
|
|
4.6 %
|
|
Foreign exchange
impact
|
(6.7) %
|
|
(8.7) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
2.7 %
|
|
(4.1) %
|
|
|
|
|
|
Total
International
|
|
|
|
|
Net revenue growth -
GAAP
|
7.4 %
|
|
7.9 %
|
|
Foreign exchange
impact
|
(3.3) %
|
|
(1.4) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
4.1 %
|
|
6.5 %
|
|
Under Armour,
Inc.
For the Three and Nine
Months Ended December 31, 2023
(Unaudited; in
thousands, except per share amounts)
The tables below
present the reconciliation of the Company's condensed consolidated
statement of operations presented in accordance with GAAP to
certain adjusted non-GAAP financial measures discussed in this
press release. See "Non-GAAP Financial Information" above
for further information regarding the Company's use of
non-GAAP financial measures.
ADJUSTED SELLING
GENERAL AND ADMINISTRATIVE EXPENSES
|
|
|
in '000s
|
Three months ended
December 31, 2023
|
|
Nine months ended
December 31, 2023
|
|
GAAP selling, general
and administrative expenses
|
$
601,661
|
|
$
1,794,703
|
|
Add: Impact of
litigation reserve
|
(22,500)
|
|
(22,500)
|
|
Adjusted selling,
general and administrative expenses
|
$
579,161
|
|
$
1,772,203
|
|
|
ADJUSTED OPERATING
INCOME (LOSS) RECONCILIATION
|
|
|
in '000s
|
Three months ended
December 31, 2023
|
|
Nine months ended
December 31, 2023
|
|
GAAP income from
operations
|
$
69,520
|
|
$
236,209
|
|
Add: Impact of
litigation reserve
|
22,500
|
|
22,500
|
|
Adjusted income from
operations
|
$
92,020
|
|
$
258,709
|
|
|
ADJUSTED NET INCOME
(LOSS) RECONCILIATION
|
|
|
in '000s
|
Three months ended
December 31, 2023
|
|
Nine months ended
December 31, 2023
|
|
GAAP net
income
|
$
114,143
|
|
$
232,306
|
|
Add: Impact of
litigation reserve
|
22,500
|
|
22,500
|
|
Add: Impact of earn-out
recorded in connection with the sale of the
MyFitnessPal platform
|
(50,000)
|
|
(50,000)
|
|
Add: Impact of
commission expense in connection with the sale of the
MyFitnessPal platform
|
700
|
|
700
|
|
Add: Impact of
provision for income taxes
|
(3,109)
|
|
(3,109)
|
|
Adjusted net
income
|
$
84,234
|
|
$
202,397
|
|
|
ADJUSTED DILUTED
EARNINGS (LOSS) PER SHARE RECONCILIATION
|
|
|
Three months ended
December 31, 2023
|
|
Nine months ended
December 31, 2023
|
|
GAAP diluted net income
per share
|
$
0.26
|
|
$
0.52
|
|
Add: Impact of
litigation reserve
|
0.05
|
|
0.05
|
|
Add: Impact of earn-out
recorded in connection with the sale of the
MyFitnessPal platform
|
(0.11)
|
|
(0.11)
|
|
Add: Impact of
commission expense in connection with the sale of the
MyFitnessPal platform
|
—
|
|
—
|
|
Add: Impact of
provision for income taxes
|
(0.01)
|
|
(0.01)
|
|
Adjusted diluted net
income per share
|
$
0.19
|
|
$
0.45
|
|
Under Armour,
Inc.
Outlook for the Year
Ended March 31, 2024
(Unaudited; in
millions, except per share amounts)
The tables below
present the reconciliation of the Company's fiscal 2024 outlook
presented in accordance with GAAP to certain adjusted
non-GAAP financial measures discussed in this press release.
See "Non-GAAP Financial Information" above for further information
regarding the Company's use of non-GAAP financial
measures.
ADJUSTED OPERATING
INCOME RECONCILIATION
|
|
|
(in
millions)
|
|
Year Ended March 31,
2024
|
|
|
Low end of
estimate
|
|
High end of
estimate
|
|
GAAP income from
operations
|
|
$287
|
|
$297
|
|
Add: Impact of
litigation reserve
|
|
23
|
|
23
|
|
Adjusted income from
operations
|
|
$310
|
|
$320
|
|
|
ADJUSTED DILUTED
(LOSS) EARNINGS PER SHARE RECONCILIATION
|
|
|
(in
millions)
|
|
Year Ended March 31,
2024
|
|
|
Low end of
estimate
|
|
High end of
estimate
|
|
GAAP diluted net income
per share
|
|
$0.57
|
|
$0.59
|
|
Add: Impact of
litigation reserve, net of tax
|
|
0.05
|
|
0.05
|
|
Add: Impact of earn-out
recorded in connection with the sale of the MyFitnessPal platform,
net of tax
|
|
(0.12)
|
|
(0.12)
|
|
Adjusted diluted net
income per share
|
|
$0.50
|
|
$0.52
|
|
|
Under Armour,
Inc.
As of December 31,
2023, and 2022
COMPANY-OWNED &
OPERATED DOOR COUNT
|
|
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
Factory
House
|
|
183
|
|
177
|
|
Brand House
|
|
17
|
|
18
|
|
North
America total doors
|
|
200
|
|
195
|
|
|
|
|
|
|
Factory
House
|
|
173
|
|
165
|
|
Brand House
|
|
67
|
|
78
|
|
International total doors
|
|
240
|
|
243
|
|
|
|
|
|
|
Factory
House
|
|
356
|
|
342
|
|
Brand House
|
|
84
|
|
96
|
|
Total
doors
|
|
440
|
|
438
|
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SOURCE Under Armour, Inc.
