Company Also Announced a New $500 Million Share Repurchase Program
BALTIMORE, May 16, 2024
/PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) announced
unaudited financial results for its fourth quarter and full-year
fiscal 2024, which ended March 31,
2024. 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.
"Amid a challenging retail environment in fiscal 2024 that
included high inventories and a consistent drumbeat of promotions –
we demonstrated disciplined expense control and delivered results
that were aligned with our previous outlook," said Under Armour
President and CEO Kevin Plank. "We
also maintained a strong balance sheet, closing the year with a
solid cash position and healthy inventory levels."
Fourth Quarter Fiscal 2024 Review
- Revenue was down 5 percent to $1.3 billion (down 5 percent currency neutral).
- North America revenue
decreased 10 percent to $772 million,
and international revenue increased 7 percent to $561 million (up 6 percent currency neutral). In
the international business, revenue increased 10 percent in EMEA
(up 7 percent currency neutral), 1 percent in Asia-Pacific (up 5 percent currency neutral),
and 20 percent in Latin America
(up 12 percent currency neutral).
- Wholesale revenue decreased 7 percent to $850 million, and direct-to-consumer revenue was
flat at $455 million. Owned and
operated store revenue increased 7 percent, and eCommerce revenue
decreased 8 percent, representing 43 percent of the total
direct-to-consumer business for the quarter.
- Apparel revenue decreased 1 percent to $877 million. Footwear revenue was down 11
percent to $338 million. Accessories
revenue was down 7 percent to $89
million.
- Gross margin increased 170 basis points to 45.0 percent,
driven primarily by supply chain benefits related to lower product
and freight costs. This was partially offset by unfavorable foreign
currency impacts and proactive inventory management actions,
including increased promotional activities in our
direct-to-consumer business.
- Selling, general & administrative expenses were up 5
percent to $603 million. Excluding a
$58 million litigation reserve
expense, adjusted selling, general & administrative
expenses were down 5 percent to $546
million.
- Operating loss was $4
million. Adjusted operating income was $54 million.
- Net Income was $7 million.
Adjusted net income was $49
million.
- Diluted earnings per share was $0.02. Adjusted diluted earnings per share
was $0.11.
- Inventory was down 19 percent to $958 million.
- At the end of the quarter, Cash and Cash Equivalents
were $859 million, and no borrowings
were outstanding under the company's $1.1
billion revolving credit facility.
Full Year Fiscal 2024 Review
- Revenue was down 3 percent to $5.7 billion (down 4 percent currency neutral).
- North America revenue
decreased 8 percent to $3.5 billion,
and international revenue increased 8 percent to $2.2 billion (up 7 percent currency neutral).
Within the international business, revenue increased 9 percent
in EMEA (up 6 percent currency neutral), 6 percent in
Asia-Pacific (up 9 percent
currency neutral), and 8 percent in Latin
America (down 1 percent currency neutral).
- Wholesale revenue decreased 7 percent to $3.2 billion, and direct-to-consumer revenue
increased 3 percent to $2.3 billion
due to a 5 percent increase in owned and operated store revenue and
a 1 percent increase in eCommerce revenue, which represented 41
percent of the total direct-to-consumer business for the year.
- Apparel revenue decreased 2 percent to $3.8 billion, footwear revenue decreased 5
percent to $1.4 billion, and
accessories revenue declined 1 percent to $406 million.
- Gross margin increased 130 basis points to 46.1 percent,
driven primarily by supply chain benefits related to lower freight
and product costs. This was partially offset by proactive inventory
management actions, including increased promotional activities in
our direct-to-consumer business.
- Selling, general & administrative expenses were up 1
percent to $2.4 billion. Excluding an
$80 million litigation reserve
expense, adjusted selling, general & administrative
expenses were down 2 percent to $2.3
billion.
- Operating income was $230
million. Excluding the company's litigation reserve expense,
adjusted operating income was $310
million.
- Net Income was $232
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, adjusted net income was $245 million.
- Diluted earnings per share was $0.52. Adjusted diluted earnings per share
was $0.54.
Fiscal 2025 Restructuring Plan
To strengthen and support the company's financial and
operational efficiencies, Under Armour's Board of Directors has
approved a restructuring plan. In conjunction with this plan, the
company expects to incur total estimated pre-tax restructuring and
related charges of approximately $70
to $90 million, including:
- Up to $50 million in cash-related
charges, consisting of approximately $15
million in employee severance and benefits costs, and
$35 million related to various
transformational initiatives, and
- Up to $40 million in non-cash
charges comprised of approximately $7
million in employee severance and benefits costs and
$33 million in facility, software and
other asset-related charges and impairments.
Fiscal 2025 Outlook
"Due to a confluence of factors, including lower wholesale
channel demand and inconsistent execution across our business, we
are seizing this critical moment to make proactive decisions to
build a premium positioning for our brand, which will pressure our
top and bottom line in the near term," Plank continued. "Over the
next 18 months, there is a significant opportunity to reconstitute
Under Armour's brand strength through achieving more, by doing less
and focusing on our core fundamentals: driving demand through
better products and storytelling, running smarter plays like
simplifying our operating model and elevating our consumer
experience. In parallel, we're focused on cost management and
implementing the strategies necessary to grow our brand and improve
shareholder value as we move forward."
Key points related to Under Armour's fiscal 2025 outlook
include:
- Revenue is expected to be down at a low-double-digit
percentage rate. This includes an expected 15 to 17 percent decline
in North America as the company
works to meaningfully reset this business following years of
heightened promotional activities, particularly in its DTC business
and a low-single-digit percent decline in its international
business due to more conservative macro consumer trends and actions
to protect the brand strength it has built.
- Gross margin is expected to be up 75 to 100 basis points
compared to the prior year, driven by a material reduction in
promotional and discounting activities in the company's
direct-to-consumer business and product costing benefits.
- Selling, general, and administrative expenses are
expected to be down 2 to 4 percent.
- Operating income is expected to be $50 to $70 million.
Excluding the mid-point of anticipated restructuring
charges, 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. Adjusted diluted earnings per share
is expected to be between $0.18 and
$0.21.
- Capital expenditures are expected to be between
$200 to $220
million.
Share Buyback Program
The company also announced that its Board of Directors has
authorized the repurchase of up to $500
million of Under Armour's outstanding Class C common
stock. Repurchases under this program may be made over the next
three years through various methods, including accelerated share
repurchase, open market, or privately negotiated transactions.
Conference Call and Webcast
Under Armour will hold its fourth 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 2025 fiscal year ending March 31, 2025. Management believes this
information is helpful to investors in comparing 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, any gain or loss in connection
with the sale of the MyFitnessPal platform, and the impact of the
company's fiscal year 2025 restructuring plan and related
charges 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, future plans and
strategies, anticipated events or trends, and similar expressions
concerning matters that are not historical facts, such as
statements regarding our share repurchase program, our future
financial condition or results of operations, our prospects and
strategies for future growth, potential restructuring efforts,
including the scope of these restructuring efforts and the amount
of potential charges and costs, the timing of these measures and
the anticipated benefits of our restructuring plans, 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," "could," "should,"
"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 changes
in 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 increasing inflation, that could
affect overall consumer spending or our industry; 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 our supply chain (including labor); our ability
to successfully execute our long-term strategies; our ability to
effectively drive operational efficiency in our business; changes
to the financial health of our customers; 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; our ability
to successfully execute any potential restructuring plans and
realize their expected benefits; loss of key customers, suppliers
or manufacturers; 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;
the impact of global or regional public health emergencies on our
industry and our business, financial condition and results of
operations, including impacts on the global supply chain; our
ability to successfully manage or realize expected results from
significant transactions and investments; our ability to
effectively market and maintain a positive brand image; our ability
to attract key talent and retain the services of our senior
management and other key employees; our ability to effectively meet
regulatory requirements and stakeholder expectations with respect
to sustainability and social matters; 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
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 date on which the statement is made or to reflect
unanticipated events.
|
The Company revised
its prior period financial statements for accounting corrections to
the Company's Consolidated Statements of Operations primarily
related to cost of goods sold and selling, general and
administrative expenses, as well as corresponding impacts to the
Company's other Consolidated Financial Statements. The impacts of
these revisions were not material to the Company's previously filed
financial statements. These revisions relate to a number of
immaterial corrections that were identified by management and when
accumulated, required a correction to the Company's previously
filed financial statements. Information presented in the tables
below as of March 31, 2023, for the three months ended March 31,
2023 and for the year ended March 31, 2023 has been revised to
reflect these corrections. See Note 1 to the Company's
Consolidated Financial Statements included in Part II, Item 8 of
the Company's Annual Report on Form 10-K for the year ended March
31, 2024, to be filed with the Securities and Exchange Commission.
As a result of these corrections, the Company is currently
assessing the nature of deficiencies in its internal control over
financial reporting.
|
|
Under Armour,
Inc.
For the Three Months
and Year Ended March 31, 2024, and 2023
(Unaudited; in
thousands, except per share amounts)
CONSOLIDATED
STATEMENTS OF OPERATION
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
in '000s
|
2024
|
|
% of Net
Revenues
|
|
2023
|
|
% of Net
Revenues
|
|
2024
|
|
% of Net
Revenues
|
|
2023
|
|
% of Net
Revenues
|
|
Net revenues
|
$
1,332,197
|
|
100.0 %
|
|
$
1,398,605
|
|
100.0 %
|
|
$
5,701,879
|
|
100.0 %
|
|
$
5,903,165
|
|
100.0 %
|
|
Cost of goods
sold
|
732,601
|
|
55.0 %
|
|
793,112
|
|
56.7 %
|
|
3,071,626
|
|
53.9 %
|
|
3,259,334
|
|
55.2 %
|
|
Gross
profit
|
599,596
|
|
45.0 %
|
|
605,493
|
|
43.3 %
|
|
2,630,253
|
|
46.1 %
|
|
2,643,831
|
|
44.8 %
|
|
Selling, general and
administrative expenses
|
603,150
|
|
45.3 %
|
|
575,931
|
|
41.2 %
|
|
2,400,502
|
|
42.1 %
|
|
2,380,245
|
|
40.3 %
|
|
Income (loss) from
operations
|
(3,554)
|
|
(0.3) %
|
|
29,562
|
|
2.1 %
|
|
229,751
|
|
4.0 %
|
|
263,586
|
|
4.5 %
|
|
Interest income
(expense), net
|
2,478
|
|
0.2 %
|
|
(1,651)
|
|
(0.1) %
|
|
268
|
|
— %
|
|
(12,826)
|
|
(0.2) %
|
|
Other income (expense),
net
|
(3,708)
|
|
(0.3) %
|
|
(10,204)
|
|
(0.7) %
|
|
32,055
|
|
0.6 %
|
|
17,096
|
|
0.3 %
|
|
Income (loss) before
income taxes
|
(4,784)
|
|
(0.4) %
|
|
17,707
|
|
1.3 %
|
|
262,074
|
|
4.6 %
|
|
267,856
|
|
4.5 %
|
|
Income tax expense
(benefit)
|
(11,327)
|
|
(0.9) %
|
|
(153,171)
|
|
(11.0) %
|
|
30,006
|
|
0.5 %
|
|
(108,645)
|
|
(1.8) %
|
|
Income (loss) from
equity method investments
|
25
|
|
— %
|
|
(308)
|
|
— %
|
|
(26)
|
|
— %
|
|
(2,042)
|
|
— %
|
|
Net income
(loss)
|
$
6,568
|
|
0.5 %
|
|
$ 170,570
|
|
12.2 %
|
|
$ 232,042
|
|
4.1 %
|
|
$ 374,459
|
|
6.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per share of Class A, B and C
common stock
|
$
0.02
|
|
|
|
$
0.38
|
|
|
|
$
0.53
|
|
|
|
$
0.83
|
|
|
|
Diluted net income
(loss) per share of Class A, B and C
common stock
|
$
0.02
|
|
|
|
$
0.38
|
|
|
|
$
0.52
|
|
|
|
$
0.81
|
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
|
|
|
|
|
|
|
|
|
Basic
|
435,582
|
|
|
|
444,052
|
|
|
|
440,324
|
|
|
|
451,426
|
|
|
|
Diluted
|
447,385
|
|
|
|
454,652
|
|
|
|
451,011
|
|
|
|
461,509
|
|
|
|
Under Armour,
Inc.
For the Three Months
and Year Ended March 31, 2024, and 2023
(Unaudited; in
thousands)
NET REVENUES BY
SEGMENT
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
in '000s
|
2024
|
|
2023
|
|
% Change
|
|
2024
|
|
2023
|
|
% Change
|
|
North
America
|
$
771,870
|
|
$
861,869
|
|
(10.4) %
|
|
$
3,505,167
|
|
$
3,820,522
|
|
(8.3) %
|
|
EMEA
|
284,134
|
|
259,514
|
|
9.5 %
|
|
1,081,915
|
|
992,624
|
|
9.0 %
|
|
Asia-Pacific
|
226,704
|
|
224,923
|
|
0.8 %
|
|
873,019
|
|
825,338
|
|
5.8 %
|
|
Latin
America
|
50,241
|
|
41,806
|
|
20.2 %
|
|
229,481
|
|
213,215
|
|
7.6 %
|
|
Corporate Other
(1)
|
(752)
|
|
10,493
|
|
(107.2) %
|
|
12,297
|
|
51,466
|
|
(76.1) %
|
|
Total net
revenues
|
$
1,332,197
|
|
$
1,398,605
|
|
(4.7) %
|
|
$
5,701,879
|
|
$
5,903,165
|
|
(3.4) %
|
|
|
NET REVENUES BY
DISTRIBUTION CHANNEL
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
in '000s
|
2024
|
|
2023
|
|
% Change
|
|
2024
|
|
2023
|
|
% Change
|
|
Wholesale
|
$
849,805
|
|
$
908,505
|
|
(6.5) %
|
|
$
3,243,187
|
|
$
3,468,126
|
|
(6.5) %
|
|
Direct-to-consumer
|
454,690
|
|
453,853
|
|
0.2 %
|
|
2,335,154
|
|
2,266,827
|
|
3.0 %
|
|
Net
Sales
|
1,304,495
|
|
1,362,358
|
|
(4.2) %
|
|
5,578,341
|
|
5,734,953
|
|
(2.7) %
|
|
License
revenues
|
28,454
|
|
25,754
|
|
10.5 %
|
|
111,241
|
|
116,746
|
|
(4.7) %
|
|
Corporate Other
(1)
|
(752)
|
|
10,493
|
|
(107.2) %
|
|
12,297
|
|
51,466
|
|
(76.1) %
|
|
Total net
revenues
|
$
1,332,197
|
|
$
1,398,605
|
|
(4.7) %
|
|
$
5,701,879
|
|
$
5,903,165
|
|
(3.4) %
|
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
in '000s
|
2024
|
|
2023
|
|
% Change
|
|
2024
|
|
2023
|
|
% Change
|
|
Apparel
|
$
877,347
|
|
$
888,920
|
|
(1.3) %
|
|
$
3,789,016
|
|
$
3,871,167
|
|
(2.1) %
|
|
Footwear
|
337,738
|
|
377,740
|
|
(10.6) %
|
|
1,383,610
|
|
1,455,265
|
|
(4.9) %
|
|
Accessories
|
89,410
|
|
95,698
|
|
(6.6) %
|
|
405,715
|
|
408,521
|
|
(0.7) %
|
|
Net
Sales
|
1,304,495
|
|
1,362,358
|
|
(4.2) %
|
|
5,578,341
|
|
5,734,953
|
|
(2.7) %
|
|
Licensing
revenues
|
28,454
|
|
25,754
|
|
10.5 %
|
|
111,241
|
|
116,746
|
|
(4.7) %
|
|
Corporate Other
(1)
|
(752)
|
|
10,493
|
|
(107.2) %
|
|
12,297
|
|
51,466
|
|
(76.1) %
|
|
Total net
revenues
|
$
1,332,197
|
|
$
1,398,605
|
|
(4.7) %
|
|
$
5,701,879
|
|
$
5,903,165
|
|
(3.4) %
|
|
|
(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 Months
and Year Ended March 31, 2024, and 2023
(Unaudited; in
thousands)
INCOME (LOSS) FROM
OPERATIONS BY SEGMENT
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
in '000s
|
2024
|
% of Net
Revenues (1)
|
|
2023
|
% of Net
Revenues (1)
|
|
2024
|
% of Net
Revenues (1)
|
|
2023
|
% of Net
Revenues (1)
|
|
North
America
|
$
139,841
|
18.1 %
|
|
$
131,135
|
15.2 %
|
|
$
677,882
|
19.3 %
|
|
$
714,656
|
18.7 %
|
|
EMEA
|
58,467
|
20.6 %
|
|
27,138
|
10.5 %
|
|
176,205
|
16.3 %
|
|
112,161
|
11.3 %
|
|
Asia-Pacific
|
33,630
|
14.8 %
|
|
23,386
|
10.4 %
|
|
119,650
|
13.7 %
|
|
100,276
|
12.1 %
|
|
Latin
America
|
5,642
|
11.2 %
|
|
4,271
|
10.2 %
|
|
38,401
|
16.7 %
|
|
23,487
|
11.0 %
|
|
Corporate Other
(2)
|
(241,134)
|
NM
|
|
(156,368)
|
NM
|
|
(782,387)
|
NM
|
|
(686,994)
|
NM
|
|
Income (loss) from
operations
|
$ (3,554)
|
(0.3) %
|
|
$ 29,562
|
2.1 %
|
|
$
229,751
|
4.0 %
|
|
$
263,586
|
4.5 %
|
|
|
(1) 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).
|
|
(2) 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.
|
|
Under Armour,
Inc.
As of March 31,
2024, and March 31, 2023
(Unaudited; in
thousands)
CONSOLIDATED
BALANCE SHEETS
|
|
|
in '000s
|
|
March 31,
2024
|
|
March 31,
2023
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
858,691
|
|
$
710,929
|
|
Accounts receivable,
net
|
|
757,339
|
|
758,564
|
|
Inventories
|
|
958,495
|
|
1,185,657
|
|
Prepaid expenses and
other current assets, net
|
|
289,157
|
|
293,334
|
|
Total current
assets
|
|
2,863,682
|
|
2,948,484
|
|
Property and equipment,
net
|
|
664,503
|
|
644,834
|
|
Operating lease
right-of-use assets
|
|
434,699
|
|
489,306
|
|
Goodwill
|
|
478,302
|
|
481,992
|
|
Intangible assets,
net
|
|
7,000
|
|
8,940
|
|
Deferred income
taxes
|
|
221,033
|
|
186,908
|
|
Other long-term
assets
|
|
91,515
|
|
67,089
|
|
Total
assets
|
|
$
4,760,734
|
|
$
4,827,553
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
80,919
|
|
$
—
|
|
Accounts
payable
|
|
483,731
|
|
648,486
|
|
Accrued
expenses
|
|
287,853
|
|
366,530
|
|
Customer refund
liabilities
|
|
139,283
|
|
160,533
|
|
Operating lease
liabilities
|
|
139,331
|
|
140,990
|
|
Other current
liabilities
|
|
34,344
|
|
42,744
|
|
Total current
liabilities
|
|
1,165,461
|
|
1,359,283
|
|
Long-term debt, net of
current maturities
|
|
594,873
|
|
674,478
|
|
Operating lease
liabilities, non-current
|
|
627,665
|
|
705,713
|
|
Other long-term
liabilities
|
|
219,449
|
|
121,932
|
|
Total
liabilities
|
|
2,607,448
|
|
2,861,406
|
|
Total stockholders'
equity
|
|
2,153,286
|
|
1,966,147
|
|
Total liabilities
and stockholders' equity
|
|
$
4,760,734
|
|
$
4,827,553
|
|
Under Armour,
Inc.
For the Years Ended
March 31, 2024 and 2023
(Unaudited; in
thousands)
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
in '000s
|
2024
|
|
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
$
232,042
|
|
$
374,459
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities
|
|
|
|
|
Depreciation and
amortization
|
142,590
|
|
135,456
|
|
Unrealized foreign
currency exchange rate (gain) loss
|
16,080
|
|
(8,463)
|
|
Loss on disposal of
property and equipment
|
1,623
|
|
2,616
|
|
Non-cash restructuring
and impairment charges
|
6,179
|
|
1,959
|
|
Amortization of bond
premium and debt issuance costs
|
2,034
|
|
2,192
|
|
Stock-based
compensation
|
42,998
|
|
36,811
|
|
Deferred income
taxes
|
(23,693)
|
|
(153,143)
|
|
Changes in reserves
and allowances
|
13,612
|
|
11,696
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(3,906)
|
|
(60,910)
|
|
Inventories
|
216,484
|
|
(368,992)
|
|
Prepaid expenses and
other assets
|
(29,060)
|
|
(37,907)
|
|
Other non-current
assets
|
34,920
|
|
(60,944)
|
|
Accounts
payable
|
(197,887)
|
|
76,280
|
|
Accrued expenses and
other liabilities
|
(18,267)
|
|
(9,388)
|
|
Customer refund
liability
|
(21,427)
|
|
851
|
|
Income taxes payable
and receivable
|
(60,352)
|
|
17,541
|
|
Net cash provided by
(used in) operating activities
|
353,970
|
|
(39,886)
|
|
Cash flows from
investing activities
|
|
|
|
|
Purchases of property
and equipment
|
(150,333)
|
|
(158,066)
|
|
Sale of MyFitnessPal
platform
|
45,000
|
|
35,000
|
|
Net cash provided by
(used in) investing activities
|
(105,333)
|
|
(123,066)
|
|
Cash flows from
financing activities
|
|
|
|
|
Common shares
repurchased
|
(75,000)
|
|
(125,000)
|
|
Employee taxes paid for
shares withheld for income taxes
|
(6,163)
|
|
(5,151)
|
|
Proceeds from exercise
of stock options and other stock issuances
|
3,193
|
|
3,776
|
|
Payments of debt
financing costs
|
(720)
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
(78,690)
|
|
(126,375)
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(19,775)
|
|
(5,315)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
150,172
|
|
(294,642)
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
Beginning of
period
|
726,745
|
|
1,021,387
|
|
End of
period
|
$
876,917
|
|
$
726,745
|
|
Under Armour,
Inc.
For the Three Months
and Year Ended March 31, 2024
(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
March 31, 2024
|
|
Year Ended
March 31, 2024
|
|
Total Net
Revenue
|
|
|
|
|
Net revenue growth -
GAAP
|
(4.7) %
|
|
(3.4) %
|
|
Foreign exchange
impact
|
(0.2) %
|
|
(0.2) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
(4.9) %
|
|
(3.6) %
|
|
|
|
|
|
North
America
|
|
|
|
|
Net revenue growth -
GAAP
|
(10.4) %
|
|
(8.3) %
|
|
Foreign exchange
impact
|
(0.1) %
|
|
0.3 %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
(10.5) %
|
|
(8.0) %
|
|
|
|
|
|
EMEA
|
|
|
|
|
Net revenue growth -
GAAP
|
9.5 %
|
|
9.0 %
|
|
Foreign exchange
impact
|
(2.4) %
|
|
(3.3) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
7.1 %
|
|
5.7 %
|
|
|
|
|
|
Asia-Pacific
|
|
|
|
|
Net revenue growth -
GAAP
|
0.8 %
|
|
5.8 %
|
|
Foreign exchange
impact
|
3.7 %
|
|
3.5 %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
4.5 %
|
|
9.3 %
|
|
|
|
|
|
Latin
America
|
|
|
|
|
Net revenue growth -
GAAP
|
20.2 %
|
|
7.6 %
|
|
Foreign exchange
impact
|
(8.7) %
|
|
(8.6) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
11.5 %
|
|
(1.0) %
|
|
|
|
|
|
Total
International
|
|
|
|
|
Net revenue growth -
GAAP
|
6.6 %
|
|
7.5 %
|
|
Foreign exchange
impact
|
(0.3) %
|
|
(1.0) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
6.3 %
|
|
6.5 %
|
|
Under Armour,
Inc.
For the Three Months
and Year Ended March 31, 2024
(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
March 31, 2024
|
|
Year ended
March 31, 2024
|
|
GAAP selling, general
and administrative expenses
|
$
603,150
|
|
$
2,400,502
|
|
Add: Impact of
litigation reserve
|
(57,500)
|
|
(80,000)
|
|
Adjusted selling,
general and administrative expenses
|
$
545,650
|
|
$
2,320,502
|
|
|
ADJUSTED OPERATING
INCOME (LOSS) RECONCILIATION
|
|
|
in '000s
|
Three months ended
March 31, 2024
|
|
Year ended
March 31, 2024
|
|
GAAP income from
operations
|
$
(3,554)
|
|
$
229,751
|
|
Add: Impact of
litigation reserve
|
57,500
|
|
80,000
|
|
Adjusted income from
operations
|
$
53,946
|
|
$
309,751
|
|
|
ADJUSTED NET INCOME
(LOSS) RECONCILIATION
|
|
|
in '000s
|
Three months ended
March 31, 2024
|
|
Year ended
March 31, 2024
|
|
GAAP net
income
|
$
6,568
|
|
$
232,042
|
|
Add: Impact of
litigation reserve
|
57,500
|
|
80,000
|
|
Add: Impact of earn-out
recorded in connection with the sale of the MyFitnessPal
platform
|
—
|
|
(50,000)
|
|
Add: Impact of
commission expense in connection with the sale of the MyFitnessPal
platform
|
—
|
|
700
|
|
Add: Impact of
provision for income taxes
|
(14,910)
|
|
(17,913)
|
|
Adjusted net
income
|
$
49,158
|
|
$
244,829
|
|
|
ADJUSTED DILUTED
EARNINGS (LOSS) PER SHARE RECONCILIATION
|
|
|
Three months ended
March 31, 2024
|
|
Year ended
March 31, 2024
|
|
GAAP diluted net income
per share
|
$
0.02
|
|
$
0.52
|
|
Add: Impact of
litigation reserve
|
0.13
|
|
0.18
|
|
Add: Impact of earn-out
recorded in connection with the sale of the MyFitnessPal
platform
|
—
|
|
(0.11)
|
|
Add: Impact of
commission expense in connection with the sale of the MyFitnessPal
platform
|
—
|
|
—
|
|
Add: Impact of
provision for income taxes
|
(0.04)
|
|
(0.05)
|
|
Adjusted diluted net
income per share
|
$
0.11
|
|
$
0.54
|
|
Under Armour,
Inc.
Outlook for the Year
Ended March 31, 2025
(Unaudited; in
millions, except per share amounts)
The tables below
present the reconciliation of the Company's fiscal 2025 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 Ending March 31,
2025
|
|
|
Low end of
estimate
|
|
High end of
estimate
|
|
GAAP income from
operations
|
|
$
50
|
|
$
70
|
|
Add: Impact of
restructuring and related impairment (1)
|
|
80
|
|
80
|
|
Adjusted income from
operations
|
|
$
130
|
|
$
150
|
|
|
ADJUSTED DILUTED
(LOSS) EARNINGS PER SHARE RECONCILIATION
|
|
|
|
Year Ending March 31,
2025
|
|
|
Low end of
estimate
|
|
High end of
estimate
|
|
GAAP diluted net income
per share
|
|
$
0.02
|
|
$
0.05
|
|
Add: Impact of
restructuring and related impairment, net of tax
(1)
|
|
0.16
|
|
0.16
|
|
Adjusted diluted net
income per share
|
|
$
0.18
|
|
$
0.21
|
|
|
(1) The estimated impact of
the restructuring plan presented above assumes the mid-point of the
Company's estimated range of restructuring and related charges,
which is $70-$90 million.
|
|
Under Armour,
Inc.
(Unaudited; in
thousands)
The Company revised
its prior period financial statements for accounting corrections to
the Company's Consolidated Statements of Operations primarily
related to cost of goods sold and selling, general and
administrative expenses, as well as corresponding impacts to the
Company's other Consolidated Financial Statements. The impact of
these revisions was not material to the Company's previously filed
financial statements. See Note 1 to the Company's Consolidated
Financial Statements included in Part II, Item 8 of the Company's
Annual Report on Form 10-K for the year ended March 31, 2024, to be
filed with the Securities and Exchange Commission. The Company has
elected to present certain revised quarterly financial information
for fiscal 2024 and fiscal 2023 to reflect these corrections in the
tables below.
SELECTED FISCAL 2024
and 2023 STATEMENTS OF OPERATIONS DATA
|
|
|
Three Months
Ended
June 30,
2023
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
December 31, 2023
|
|
Three Months
Ended
March 31, 2024
|
|
Fiscal
2024
|
|
% of Net
Revenues
|
|
Net revenues
|
$
1,316,965
|
|
$
1,566,674
|
|
$
1,486,043
|
|
$
1,332,197
|
|
$
5,701,879
|
|
100.0 %
|
|
Cost of goods
sold
|
704,792
|
|
816,615
|
|
817,618
|
|
732,601
|
|
3,071,626
|
|
53.9 %
|
|
Gross
profit
|
612,173
|
|
750,059
|
|
668,425
|
|
599,596
|
|
2,630,253
|
|
46.1 %
|
|
Selling, general and
administrative expenses
|
589,072
|
|
607,023
|
|
601,257
|
|
603,150
|
|
2,400,502
|
|
42.1 %
|
|
Income (loss) from
operations
|
23,101
|
|
143,036
|
|
67,168
|
|
(3,554)
|
|
229,751
|
|
4.0 %
|
|
Interest income
(expense), net
|
(1,626)
|
|
(373)
|
|
(211)
|
|
2,478
|
|
268
|
|
— %
|
|
Other income (expense),
net
|
(6,060)
|
|
(6,104)
|
|
47,927
|
|
(3,708)
|
|
32,055
|
|
0.6 %
|
|
Income (loss) before
income taxes
|
$
15,415
|
|
$
136,559
|
|
$
114,884
|
|
$
(4,784)
|
|
$
262,074
|
|
4.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
2022
|
|
Three Months
Ended
September 30, 2022
|
|
Three Months
Ended
December 31, 2022
|
|
Three Months
Ended
March 31, 2023
|
|
Fiscal
2023
|
|
% of Net
Revenues
|
|
Net revenues
|
$
1,348,777
|
|
$
1,574,296
|
|
$
1,581,487
|
|
$
1,398,605
|
|
$
5,903,165
|
|
100.0 %
|
|
Cost of goods
sold
|
720,860
|
|
860,799
|
|
884,563
|
|
793,112
|
|
3,259,334
|
|
55.2 %
|
|
Gross
profit
|
627,917
|
|
713,497
|
|
696,924
|
|
605,493
|
|
2,643,831
|
|
44.8 %
|
|
Selling, general and
administrative expenses
|
599,286
|
|
597,595
|
|
607,433
|
|
575,931
|
|
2,380,245
|
|
40.3 %
|
|
Income (loss) from
operations
|
28,631
|
|
115,902
|
|
89,491
|
|
29,562
|
|
263,586
|
|
4.5 %
|
|
Interest income
(expense), net
|
(6,005)
|
|
(3,555)
|
|
(1,615)
|
|
(1,651)
|
|
(12,826)
|
|
(0.2) %
|
|
Other income (expense),
net
|
(14,241)
|
|
(5,771)
|
|
47,312
|
|
(10,204)
|
|
17,096
|
|
0.3 %
|
|
Income (loss) before
income taxes
|
$
8,385
|
|
$
106,576
|
|
$
135,188
|
|
$
17,707
|
|
$
267,856
|
|
4.5 %
|
|
Under Armour,
Inc.
As of March 31, 2024,
and 2023
COMPANY-OWNED &
OPERATED DOOR COUNT
|
|
|
|
March 31,
|
|
|
2024
|
|
2023
|
|
Factory
House
|
|
183
|
|
176
|
|
Brand House
|
|
17
|
|
18
|
|
North
America total doors
|
|
200
|
|
194
|
|
|
|
|
|
|
Factory
House
|
|
173
|
|
165
|
|
Brand House
|
|
67
|
|
80
|
|
International total doors
|
|
240
|
|
245
|
|
|
|
|
|
|
Factory
House
|
|
356
|
|
341
|
|
Brand House
|
|
84
|
|
98
|
|
Total
doors
|
|
440
|
|
439
|
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multimedia:https://www.prnewswire.com/news-releases/under-armour-reports-fourth-quarter-and-full-year-fiscal-2024-results-provides-initial-fiscal-2025-outlook-302147079.html
SOURCE Under Armour, Inc.