BALTIMORE, Aug. 8, 2024
/PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) announced
unaudited financial results for its first quarter fiscal 2025,
which ended June 30, 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.
"We are encouraged by early progress in our efforts to
reconstitute a premium positioning for the Under Armour brand and
pleased with our first quarter fiscal 2025 results that were ahead
of expectations," said Under Armour President and CEO Kevin Plank. "Our renewed energy and alignment
are proving to be critical enablers as we work to deliver superior
products and storytelling while driving efficiencies, reducing
promotional activity, and complexity."
Plank continued, "With the strongest product organization we've
had in many years and strengthened brand leadership, we're
confident in our ability to elevate our design and innovation over
the coming seasons and amplify our unique connection with athletes
as their brand of choice."
First Quarter Fiscal 2025 Review
- Revenue was down 10 percent to $1.2 billion (down 10 percent currency neutral).
- North America revenue
decreased 14 percent to $709 million,
and international revenue decreased 2 percent to $473 million (down 2 percent currency neutral).
In the international business, revenue in EMEA was flat (flat
currency neutral), down 10 percent in Asia-Pacific (down 7 percent currency
neutral), and up 16 percent in Latin
America (up 12 percent currency neutral).
- Wholesale revenue decreased 8 percent to $681 million, and direct-to-consumer revenue was
down 12 percent to $480 million.
Owned and operated store revenue declined 3 percent. Because of
planned decreases in promotional activities, eCommerce revenue
decreased 25 percent, representing 34 percent of the total
direct-to-consumer business for the quarter.
- Apparel revenue decreased 8 percent to $758 million, footwear revenue was down 15
percent to $310 million, and
accessories revenue was down 5 percent to $93 million.
- Gross margin increased 110 basis points to 47.5 percent,
driven primarily by lower levels of discounting in the
direct-to-consumer business and lower product costs. This was
partially offset by unfavorable foreign currency impacts, channel
and regional mix, and headwinds due to the timing of prior year
supply chain benefits.
- Due to a litigation reserve, selling, general, and
administrative expenses were up 42 percent to $837 million. Adjusted selling, general, and
administrative expenses were down 6 percent to $555 million, which excludes $274 million of litigation reserve expense, net
of a related $60 million insurance
receivable, and approximately $9
million of transformation expenses related to our Fiscal 25
restructuring program.
- Restructuring charges were $25
million.
- Operating loss was $300
million. Excluding transformation expenses and other charges
totaling $308 million, adjusted
operating income was $8
million.
- Net loss was $305 million.
Adjusted net income was $4
million.
- Diluted loss per share was $0.70. Adjusted diluted earnings per share
was $0.01.
- Inventory was down 15 percent to $1.1 billion.
- At the end of the quarter, cash and cash equivalents
were $885 million, and no borrowings
were outstanding under the company's $1.1
billion revolving credit facility.
Share Buyback Program
In May 2024, Under Armour
announced that its Board of Directors authorized a $500 million stock repurchase plan. In the first
quarter, the company repurchased $40
million of its Class C common stock, reflecting 5.9 million
shares retired, leaving approximately $460
million under the authorization.
Fiscal 2025 Restructuring Plan
In May 2024, Under Armour
announced a restructuring plan designed to strengthen and support
the company's financial and operational efficiencies. Of the
estimated $70 million to $90 million restructuring plan range, the company
recognized $25 million of
restructuring and impairment charges and $9
million of other related transformational expenses. Of the
total $34 million incurred to date,
$19 million has been cash, and
$15 million has been non-cash
charges. The company anticipates the remainder of the charges under
the existing restructuring plan to occur during fiscal 2025.
Updated Fiscal 2025 Outlook
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 14 to 16 percent decline
(previously a 15 to 17 percent decline) in North America as the company works to reset
this business meaningfully and a low-single-digit percent decline
in its international business, including flat results in EMEA
offset by a high-single-digit decline in its Asia-Pacific business due to developing
macroeconomic pressures.
- 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. This is
expected to be partially offset by emerging headwinds from higher
ocean freight costs, unfavorable impacts from changes in foreign
currency, and unfavorable channel mix.
- Selling, general, and administrative expenses are
expected to be up at a mid-to-high-single digit percent rate due to
litigation expenses. Adjusted selling, general, and
administrative expenses are expected to be down at a
low-to-mid-single digit rate.
- Operating loss is expected to be $194 to $214
million. Excluding the mid-point of anticipated
restructuring charges and the litigation reserve expense,
adjusted operating income is expected to be $140 to $160
million versus the previous expectation of $130 to $150
million.
- Diluted loss per share is expected to be between
$0.53 and $0.56, and adjusted diluted earnings per
share are expected to be between $0.19 and $0.22.
- Capital expenditures are expected to be between
$200 to $220
million.
Conference Call and Webcast
Under Armour will hold its first quarter fiscal 2025
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 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.
|
As previously
disclosed, during Fiscal 2024, we identified and corrected certain
accounting errors, primarily related to cost of goods sold and
selling, general and administrative expenses on the Consolidated
Statement of Operations, as well as corresponding impacts to our
other Consolidated Financial Statements. The impacts of these
revisions were not material to our previously filed financial
statements. Information presented in the tables below for the three
months ended June 30, 2023, has been revised to reflect these
corrections. See Note 1 to the Company's Condensed Consolidated
Financial Statements included in Part I, Item 1 of the Company's
Quarterly Report on Form 10-Q for the three months ended June 30,
2024, to be filed with the Securities and Exchange
Commission.
Under Armour,
Inc.
For the Three Months
Ended June 30, 2024, and 2023
(Unaudited; in
thousands, except per share amounts)
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATION
|
|
Three Months Ended June
30,
|
|
in '000s
|
2024
|
|
% of Net
Revenues
|
|
2023
|
|
% of Net
Revenues
|
|
Net revenues
|
$ 1,183,665
|
|
100.0 %
|
|
$ 1,316,965
|
|
100.0 %
|
|
Cost of goods
sold
|
620,990
|
|
52.5 %
|
|
705,470
|
|
53.6 %
|
|
Gross
profit
|
562,675
|
|
47.5 %
|
|
611,495
|
|
46.4 %
|
|
Selling, general and
administrative expenses
|
837,317
|
|
70.7 %
|
|
589,072
|
|
44.7 %
|
|
Restructuring
charges
|
25,086
|
|
2.1 %
|
|
—
|
|
— %
|
|
Income (loss) from
operations
|
(299,728)
|
|
(25.3) %
|
|
22,423
|
|
1.7 %
|
|
Interest income
(expense), net
|
2,344
|
|
0.2 %
|
|
(1,626)
|
|
(0.1) %
|
|
Other income (expense),
net
|
(2,730)
|
|
(0.2) %
|
|
(6,060)
|
|
(0.5) %
|
|
Income (loss) before
income taxes
|
(300,114)
|
|
(25.4) %
|
|
14,737
|
|
1.1 %
|
|
Income tax expense
(benefit)
|
5,149
|
|
0.4 %
|
|
4,328
|
|
0.3 %
|
|
Income (loss) from
equity method investments
|
(163)
|
|
— %
|
|
(399)
|
|
— %
|
|
Net income
(loss)
|
$
(305,426)
|
|
(25.8) %
|
|
$
10,010
|
|
0.8 %
|
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per share of Class A, B and C common stock
|
$
(0.70)
|
|
|
|
$
0.02
|
|
|
|
Diluted net income
(loss) per share of Class A, B and C common stock
|
$
(0.70)
|
|
|
|
$
0.02
|
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
|
Basic
|
435,693
|
|
|
|
444,872
|
|
|
|
Diluted
|
435,693
|
|
|
|
454,506
|
|
|
|
Under Armour,
Inc.
For the Three Months
Ended June 30, 2024, and 2023
(Unaudited; in
thousands)
NET REVENUES BY
SEGMENT
|
|
|
Three Months Ended June
30,
|
|
in '000s
|
2024
|
|
2023
|
|
% Change
|
|
North
America
|
$
709,260
|
|
$
826,605
|
|
(14.2) %
|
|
EMEA
|
226,892
|
|
226,641
|
|
0.1 %
|
|
Asia-Pacific
|
181,836
|
|
202,232
|
|
(10.1) %
|
|
Latin
America
|
64,409
|
|
55,739
|
|
15.6 %
|
|
Corporate Other
(1)
|
1,268
|
|
5,748
|
|
(77.9) %
|
|
Total net
revenues
|
$
1,183,665
|
|
$
1,316,965
|
|
(10.1) %
|
|
|
NET REVENUES BY
DISTRIBUTION CHANNEL
|
|
|
Three Months Ended June
30,
|
|
in '000s
|
2024
|
|
2023
|
|
% Change
|
|
Wholesale
|
$
680,513
|
|
$
741,958
|
|
(8.3) %
|
|
Direct-to-consumer
|
480,213
|
|
544,187
|
|
(11.8) %
|
|
Net
Sales
|
1,160,726
|
|
1,286,145
|
|
(9.8) %
|
|
License
revenues
|
21,671
|
|
25,072
|
|
(13.6) %
|
|
Corporate Other
(1)
|
1,268
|
|
5,748
|
|
(77.9) %
|
|
Total net
revenues
|
$
1,183,665
|
|
$
1,316,965
|
|
(10.1) %
|
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
Three Months Ended June
30,
|
|
in '000s
|
2024
|
|
2023
|
|
% Change
|
|
Apparel
|
$
757,792
|
|
$
824,613
|
|
(8.1) %
|
|
Footwear
|
310,389
|
|
363,670
|
|
(14.7) %
|
|
Accessories
|
92,545
|
|
97,862
|
|
(5.4) %
|
|
Net
Sales
|
1,160,726
|
|
1,286,145
|
|
(9.8) %
|
|
Licensing
revenues
|
21,671
|
|
25,072
|
|
(13.6) %
|
|
Corporate Other
(1)
|
1,268
|
|
5,748
|
|
(77.9) %
|
|
Total net
revenues
|
$
1,183,665
|
|
$
1,316,965
|
|
(10.1) %
|
|
|
(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, 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
Ended June 30, 2024, and 2023
(Unaudited; in
thousands)
INCOME (LOSS) FROM
OPERATIONS BY SEGMENT
|
|
|
Three Months Ended June
30,
|
|
in '000s
|
2024
|
% of Net
Revenues (1)
|
|
2023
|
% of Net
Revenues (1)
|
|
North
America
|
$
147,889
|
20.9 %
|
|
$
160,714
|
19.4 %
|
|
EMEA
|
20,456
|
9.0 %
|
|
29,779
|
13.1 %
|
|
Asia-Pacific
|
9,935
|
5.5 %
|
|
15,398
|
7.6 %
|
|
Latin
America
|
15,171
|
23.6 %
|
|
5,777
|
10.4 %
|
|
Corporate Other
(2)
|
(493,179)
|
NM
|
|
(189,245)
|
NM
|
|
Income (loss) from
operations
|
$ (299,728)
|
(25.3) %
|
|
$
22,423
|
1.7 %
|
|
|
(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, 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 June 30,
2024, and March 31, 2024
(Unaudited; in
thousands)
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
in '000s
|
|
June 30,
2024
|
|
March 31,
2024
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
884,552
|
|
$
858,691
|
|
Accounts receivable,
net
|
|
684,695
|
|
757,339
|
|
Inventories
|
|
1,119,599
|
|
958,495
|
|
Prepaid expenses and
other current assets, net
|
|
279,140
|
|
289,157
|
|
Total current
assets
|
|
2,967,986
|
|
2,863,682
|
|
Property and equipment,
net
|
|
671,144
|
|
664,503
|
|
Operating lease
right-of-use assets
|
|
418,794
|
|
434,699
|
|
Goodwill
|
|
476,098
|
|
478,302
|
|
Intangible assets,
net
|
|
6,433
|
|
7,000
|
|
Deferred income
taxes
|
|
228,468
|
|
221,033
|
|
Other long-term
assets
|
|
91,588
|
|
91,515
|
|
Total
assets
|
|
$
4,860,511
|
|
$
4,760,734
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
—
|
|
$
80,919
|
|
Accounts
payable
|
|
697,983
|
|
483,731
|
|
Accrued
expenses
|
|
697,722
|
|
287,853
|
|
Customer refund
liabilities
|
|
130,506
|
|
139,283
|
|
Operating lease
liabilities
|
|
134,976
|
|
139,331
|
|
Other current
liabilities
|
|
57,104
|
|
34,344
|
|
Total current
liabilities
|
|
1,718,291
|
|
1,165,461
|
|
Long-term debt, net of
current maturities
|
|
595,384
|
|
594,873
|
|
Operating lease
liabilities, non-current
|
|
612,416
|
|
627,665
|
|
Other long-term
liabilities
|
|
117,848
|
|
219,449
|
|
Total
liabilities
|
|
3,043,939
|
|
2,607,448
|
|
Total stockholders'
equity
|
|
1,816,572
|
|
2,153,286
|
|
Total liabilities
and stockholders' equity
|
|
$
4,860,511
|
|
$
4,760,734
|
|
Under Armour,
Inc.
For the Three Months
Ended June 30, 2024 and 2023
(Unaudited; in
thousands)
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Three Months Ended June
30,
|
|
in '000s
|
2024
|
|
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
$
(305,426)
|
|
$
10,010
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities
|
|
|
|
|
Depreciation and
amortization
|
32,830
|
|
34,695
|
|
Unrealized foreign
currency exchange rate (gain) loss
|
1,610
|
|
8,230
|
|
Loss on disposal of
property and equipment
|
379
|
|
405
|
|
Non-cash restructuring
and impairment charges
|
8,038
|
|
—
|
|
Amortization of bond
premium and debt issuance costs
|
511
|
|
548
|
|
Stock-based
compensation
|
15,924
|
|
11,777
|
|
Deferred income
taxes
|
7,071
|
|
(8,756)
|
|
Changes in reserves
and allowances
|
(22)
|
|
12,005
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
71,014
|
|
63,725
|
|
Inventories
|
(162,623)
|
|
(145,023)
|
|
Prepaid expenses and
other assets
|
(34,830)
|
|
(10,148)
|
|
Other non-current
assets
|
13,837
|
|
28,715
|
|
Accounts
payable
|
200,289
|
|
46,854
|
|
Accrued expenses and
other liabilities
|
320,270
|
|
(46,795)
|
|
Customer refund
liabilities
|
(9,007)
|
|
(24,472)
|
|
Income taxes payable
and receivable
|
(6,890)
|
|
12,223
|
|
Net cash provided by
(used in) operating activities
|
152,975
|
|
(6,007)
|
|
Cash flows from
investing activities
|
|
|
|
|
Purchases of property
and equipment
|
(45,681)
|
|
(32,553)
|
|
Sale of MyFitnessPal
platform
|
50,000
|
|
45,000
|
|
Net cash provided by
(used in) investing activities
|
4,319
|
|
12,447
|
|
Cash flows from
financing activities
|
|
|
|
|
Common shares
repurchased
|
(40,000)
|
|
—
|
|
Repayment of long-term
debt
|
(80,919)
|
|
—
|
|
Employee taxes paid for
shares withheld for income taxes
|
(7,944)
|
|
(2,104)
|
|
Proceeds from exercise
of stock options and other stock issuances
|
643
|
|
870
|
|
Net cash provided by
(used in) financing activities
|
(128,220)
|
|
(1,234)
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(2,830)
|
|
(12,087)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
26,244
|
|
(6,881)
|
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
Beginning of
period
|
876,917
|
|
726,745
|
|
End of
period
|
$
903,161
|
|
$
719,864
|
|
Under Armour,
Inc.
For the Three Months
Ended June 30, 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
June 30, 2024
|
|
Total Net
Revenue
|
|
|
Net revenue growth -
GAAP
|
(10.1) %
|
|
Foreign exchange
impact
|
0.2 %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
(9.9) %
|
|
|
|
North
America
|
|
|
Net revenue growth -
GAAP
|
(14.2) %
|
|
Foreign exchange
impact
|
— %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
(14.2) %
|
|
|
|
EMEA
|
|
|
Net revenue growth -
GAAP
|
0.1 %
|
|
Foreign exchange
impact
|
(0.4) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
(0.3) %
|
|
|
|
Asia-Pacific
|
|
|
Net revenue growth -
GAAP
|
(10.1) %
|
|
Foreign exchange
impact
|
2.8 %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
(7.3) %
|
|
|
|
Latin
America
|
|
|
Net revenue growth -
GAAP
|
15.6 %
|
|
Foreign exchange
impact
|
(3.9) %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
11.7 %
|
|
|
|
Total
International
|
|
|
Net revenue growth -
GAAP
|
(2.4) %
|
|
Foreign exchange
impact
|
0.6 %
|
|
Currency neutral net
revenue growth - Non-GAAP
|
(1.8) %
|
|
|
Under Armour,
Inc.
For the Three Months
Ended June 30, 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
June 30, 2024
|
|
GAAP selling, general
and administrative expenses
|
$
837,317
|
|
Add: Impact of
litigation reserve
|
(274,000)
|
|
Add: Impact of
restructuring-related transformational expenses
|
(8,657)
|
|
Adjusted selling,
general and administrative expenses
|
$
554,660
|
|
|
ADJUSTED OPERATING
INCOME (LOSS) RECONCILIATION
|
|
|
in '000s
|
Three months ended
June 30, 2024
|
|
GAAP loss from
operations
|
$
(299,728)
|
|
Add: Impact of
litigation reserve
|
274,000
|
|
Add: Impact of
restructuring charges
|
25,086
|
|
Add: Impact of
restructuring-related transformational expenses
|
8,657
|
|
Adjusted income from
operations
|
$
8,015
|
|
|
ADJUSTED NET INCOME
(LOSS) RECONCILIATION
|
|
|
in '000s
|
Three months ended
June 30, 2024
|
|
GAAP net
loss
|
$
(305,426)
|
|
Add: Impact of
litigation reserve
|
274,000
|
|
Add: Impact of
restructuring charges
|
25,086
|
|
Add: Impact of
restructuring-related transformational expenses
|
8,657
|
|
Add: Impact of
provision for income taxes
|
1,339
|
|
Adjusted net
income
|
$
3,656
|
|
|
Under Armour,
Inc.
For the Three Months
Ended June 30, 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 DILUTED
EARNINGS (LOSS) PER SHARE RECONCILIATION
|
|
|
Three months ended
June 30, 2024
|
|
GAAP diluted net loss
per share
|
$
(0.70)
|
|
Add: Impact of
litigation reserve
|
0.63
|
|
Add: Impact of
restructuring charges
|
0.06
|
|
Add: Impact of
restructuring-related transformational expenses
|
0.02
|
|
Add: Impact of
provision for income taxes
|
—
|
|
Adjusted diluted net
income per share
|
$
0.01
|
|
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 loss from
operations
|
|
$
(214)
|
|
$
(194)
|
|
Add: Impact of
litigation reserve
|
|
274
|
|
274
|
|
Add: Impact of charges
under 2025 restructuring plan (1)
|
|
80
|
|
80
|
|
Adjusted income from
operations
|
|
$
140
|
|
$
160
|
|
|
ADJUSTED DILUTED
(LOSS) EARNINGS PER SHARE RECONCILIATION
|
|
|
Year Ending March 31,
2025
|
|
|
Low end of
estimate
|
|
High end of
estimate
|
|
GAAP diluted net loss
per share
|
|
$
(0.56)
|
|
$
(0.53)
|
|
Add: Impact of
litigation reserve
|
|
0.63
|
|
0.63
|
|
Add: Impact of charges
under 2025 restructuring plan (1)
|
|
0.18
|
|
0.18
|
|
Add: Impact of
provision for income taxes
|
|
(0.06)
|
|
(0.06)
|
|
Adjusted diluted net
income per share
|
|
$
0.19
|
|
$
0.22
|
|
|
(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.
Outlook for the Quarter
Ended September 30, 2024
(Unaudited; in
millions, except per share amounts)
The tables below
present the reconciliation of the Company's second quarter 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)
|
|
Quarter Ending
September 30, 2024
|
|
|
Low end of
estimate
|
|
High end of
estimate
|
|
GAAP income from
operations
|
|
$
85
|
|
$
95
|
|
Add: Estimated impact
of charges under 2025 restructuring plan
|
|
25
|
|
25
|
|
Adjusted income from
operations
|
|
$
110
|
|
$
120
|
|
|
ADJUSTED DILUTED
(LOSS) EARNINGS PER SHARE RECONCILIATION
|
|
|
|
Quarter Ending
September 30, 2024
|
|
|
Low end of
estimate
|
|
High end of
estimate
|
|
GAAP diluted net income
per share
|
|
$
0.19
|
|
$
0.21
|
|
Add: Estimated impact
of charges under 2025 restructuring plan
|
|
0.06
|
|
0.06
|
|
Add: Impact of
provision for income taxes
|
|
(0.07)
|
|
(0.07)
|
|
Adjusted diluted net
income per share
|
|
$
0.18
|
|
$
0.20
|
|
Under Armour,
Inc.
As of June 30, 2024,
and 2023
COMPANY-OWNED &
OPERATED DOOR COUNT
|
|
|
|
June 30,
|
|
|
2024
|
|
2023
|
|
Factory
House
|
|
183
|
|
177
|
|
Brand House
|
|
17
|
|
19
|
|
North
America total doors
|
|
200
|
|
196
|
|
|
|
|
|
|
Factory
House
|
|
173
|
|
168
|
|
Brand House
|
|
68
|
|
79
|
|
International total doors
|
|
241
|
|
247
|
|
|
|
|
|
|
Factory
House
|
|
356
|
|
345
|
|
Brand House
|
|
85
|
|
98
|
|
Total
doors
|
|
441
|
|
443
|
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SOURCE Under Armour, Inc.