Key PointsWhen Under Armour reports fourth quarter results next month, the market could be in for a blowout performance.With a current P/E ratio of 14x, UAA may become an attractive buy candidate if the value style of investing supplants growth in 2024 as some expect.With DTC now representing about 40% of total revenue, store count growth and effective technology investments will largely dictate the turnaround story.5 stocks we like better than Under ArmourOn two occasions last year, Under Armour, Inc. NYSE ...

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1] Company Strategy and Industry Competition - No specific company strategy or industry competition details mentioned in the provided content [1] Management Commentary on Operating Environment and Future Outlook - No specific management commentary on operating environment or future outlook mentioned in the provided content [1] Other Important Information - The event is a Q2 2024 earnings conference call for Under Armour [1] - Participants are in listen-only mode, with an opportunity to ask questions after the presentation [1] - The event is being recorded [1] Q&A Session Summary - No Q&A session details provided in the content [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ Form 10-Q ______________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33202 ______________________________________ UNDE ...

Under Armour, Inc. (NYSE:UAA) Q1 2024 Earnings Conference Call August 8, 2023 8:30 AM ET Company Participants Lance Allega - Senior Vice President of Investor Relations & Corporate Development Stephanie Linnartz - President & Chief Executive Officer David Bergman - Chief Financial Officer Conference Call Participants Simeon Siegel - BMO Capital Markets Jay Sole - UBS Robert Drbul - Guggenheim Securities Sharon Zackfia - William Blair Geoff Lowery - Redburn Brian Nagel - Oppenheimer Samuel Poser - Williams T ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ Form 10-Q ______________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33202 ______________________________________ UNDER ARM ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ Form 10-K ______________________________________ (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33202 ______________________________________ UNDER ARMOUR, IN ...

Financial Data and Key Metrics Changes - Fiscal '23 results were in line with expectations, closing the year with a solid fourth quarter revenue of $1.4 billion, an 8% increase, and a 10% increase on a currency-neutral basis [44] - Gross margin for the fourth quarter declined by 310 basis points to 43.4%, driven by higher promotional activity and unfavorable pricing [46][47] - SG&A expenses decreased by 4% to $572 million, primarily due to lower marketing spending [48] Business Line Data and Key Metrics Changes - Apparel revenue increased by 1%, with strength in golf and run businesses, while footwear revenue surged by 27%, driven by team sports, run, and golf [46] - Direct-to-consumer (DTC) business was flat during the quarter, with e-commerce growth of 6% offset by softness in retail stores [45] - Wholesale revenue increased by 10%, driven by solid performance in the full-price business [46] Market Data and Key Metrics Changes - EMEA region saw a 23% increase in currency-neutral revenue, marking it as the highest growth region in fiscal '23 [22] - APAC revenue increased by 31% in the fourth quarter on a currency-neutral basis, benefiting from China's reopening [45] - North America revenue grew by 3%, driven by full-price and off-price wholesale businesses [45] Company Strategy and Development Direction - The company is focusing on three strategic priorities over the next three years, termed Protect This House 3 (PTH 3), which include driving global brand heat, elevating product design, and driving growth in the U.S. [20][42] - There is a strong emphasis on improving brand consistency and engagement in the U.S. market, with plans to reposition existing products and enhance marketing efforts [58][60] - The company aims to expand its total addressable market to over $300 billion by focusing on Sportstyle, footwear, and women's products [33][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's potential, citing strong athlete engagement and a solid base in performance [69] - The focus will be on executing a narrowed list of strategic initiatives to drive results, emphasizing accountability and execution across teams [70][71] - Fiscal '24 is expected to be a year of building, with revenue anticipated to be flat to slightly up, while gross margin is expected to improve [51][50] Other Important Information - The company has made leadership changes and is in the process of hiring a Chief Consumer Officer to enhance brand and marketing strategies [27] - The partnership with Stephen Curry is seen as a significant catalyst for growth, with plans to amplify the Curry brand across various categories [9][31] Q&A Session Summary Question: How to fix inconsistencies in the U.S. market? - Management acknowledged that fixing inconsistencies is a gradual process, focusing on repositioning existing products and enhancing storytelling and merchandising [58][60] Question: Are there KPI targets for new product penetration? - KPIs are being developed to track the growth trajectory of products in the better and best categories, with ongoing customer feedback being prioritized [61][62] Question: What gives confidence in growth opportunities now? - Confidence stems from a strong performance base, athlete engagement, and a focused strategy on product, marketing, and distribution [69][70]

Financial Data and Key Metrics Changes - Revenue for Q3 2023 increased by 3% to $1.6 billion, or up 7% on a currency-neutral basis [22][27] - Gross margin decreased by 650 basis points due to higher promotions and discounting, among other factors [29][33] - Operating income was $95 million, exceeding the outlook of $75 million to $85 million [30] - Net income was $122 million, or $0.27 diluted earnings per share, with adjusted net income at $76 million [30][35] Business Line Data and Key Metrics Changes - Apparel revenue decreased by 2%, with strengths in golf and team sports offset by softness in training [28] - Footwear revenue increased by 25%, driven by strong performance in running and team sports categories [28] - Accessories revenue declined by 2% due to weaker sales of cold weather accessories [28] Market Data and Key Metrics Changes - North America revenue declined by 2% to just over $1 billion, with wholesale down 6% and DTC up 1% [22][23] - EMEA revenue increased by 32% to $265 million, or 46% on a currency-neutral basis [23] - APAC revenue decreased by 9% to $198 million, or up 1% on a currency-neutral basis, with challenges in China impacting retail traffic [24] Company Strategy and Development Direction - The company is focusing on broadening its product offerings to address non-active moments of an athlete's day and enhancing its segmentation strategy [10][14] - A new President and CEO, Stephanie Linnartz, is expected to bring significant experience in brand strategy and digital transformation [7][8] - The company aims to strengthen its brand through innovative products and improved consumer experiences [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted a dynamic retail environment with increased promotional activities due to elevated inventories across the sector [40][70] - There is cautious optimism regarding consumer behavior, with expectations that promotional pressures will continue into the next fiscal year [40][71] - The company is confident in its strategic evolution and believes it is well-positioned to navigate near-term uncertainties [36][37] Other Important Information - Inventory levels increased by 50% to $1.2 billion, reflecting a normalization to support a $6 billion brand [25][26] - The company repurchased an additional $75 million of Class C common stock, totaling $425 million under its two-year buyback program [32] Q&A Session All Questions and Answers Question: Change in the environment for the next fiscal year - Management indicated that both consumer willingness to spend and industry dynamics with heavy inventory are contributing to the changing environment [39][40] Question: Hiring of Stephanie Linnartz - Management highlighted her extensive experience and successful track record as key reasons for her appointment [41][42] Question: Expectations for stores, e-commerce, and wholesale - Management discussed strong performance in Europe and challenges in China, emphasizing the importance of DTC investments [44][45][46] Question: Marketing focus on 16-20-year-old athletes - Management noted early improvements in metrics for this demographic and plans to maintain marketing spend at 10-11% of revenue [62][65] Question: Overall consumer demand and inventory clearance - Management clarified that the current situation is more about inventory management rather than a significant decline in consumer demand [69][70]

Revenue Performance - Total net revenues increased by 3.4% for the three months ended December 31, 2022, compared to the same period in 2021[125]. - Wholesale revenue increased by 6.8%, while direct-to-consumer revenue decreased by 0.7%[125]. - Net sales increased by $46.8 million, or 3.1%, to $1,535.0 million for the three months ended December 31, 2022, compared to $1,488.2 million for the same period in 2021[136]. - Total net revenues increased by $52.6 million to $1,581.8 million during the three months ended December 31, 2022, a growth of 3.4% year-over-year[155]. - Total net revenues for the nine months ended December 31, 2022, increased by $78.5 million, or 1.8%, to $4,504.7 million compared to the same period in 2021[135]. Regional Performance - The company experienced a 2.4% decrease in net revenue in North America, while EMEA saw an increase of 32.5%[125]. - North America net revenues decreased by $25.7 million, or 2.4%, to $1,037.6 million, primarily due to a decline in the wholesale channel[155]. - EMEA region net revenues increased by $65.0 million, or 32.5%, to $265.3 million, driven by higher wholesale channel performance[155]. - Asia-Pacific region net revenues decreased by $19.2 million, or 8.8%, to $198.0 million, impacted by COVID-19 related restrictions[157]. - Latin America region net revenues increased by $19.8 million, or 44.9%, to $63.8 million, attributed to a shift to a distributor operating model[157]. Product Performance - Apparel revenue decreased by 2.1%, footwear revenue increased by 25.3%, and accessories revenue decreased by 1.7%[125]. - Footwear sales increased by 25.3% to $354.4 million for the three months ended December 31, 2022, while apparel sales decreased by 2.1% to $1,075.7 million[134]. Financial Metrics - Gross margin decreased by 650 basis points to 44.2%[125]. - Gross profit decreased by $77.5 million to $698.4 million for the three months ended December 31, 2022, with gross margin dropping to 44.2% from 50.7%[140]. - Total operating income increased by $8.5 million to $94.7 million during the three months ended December 31, 2022, a 9.9% increase year-over-year[158]. - Total operating income decreased by $130.8 million, or 34.5%, to $248.6 million for the nine months ended December 31, 2022[164]. Expenses and Income - Selling, general and administrative expenses decreased by 10.6%[125]. - Selling, general and administrative expenses decreased by $71.9 million, or 10.6%, to $603.7 million for the three months ended December 31, 2022[144]. - Net income for the three months ended December 31, 2022, was $121.6 million, compared to $109.7 million in the same period in 2021, representing an increase of 10.5%[131]. - Interest expense, net decreased by $6.0 million to $1.6 million during the three months ended December 31, 2022, a reduction of 78.7% compared to the same period in 2021[147]. - Other income (expense), net increased by $23.3 million to income of $47.3 million during the three months ended December 31, 2022, representing a 96.8% increase year-over-year[151]. - Income tax expense increased by $25.6 million to $18.8 million during the three months ended December 31, 2022, with an effective tax rate of 13.4% compared to a benefit of (6.6)% in the same period in 2021[152]. Cash Flow and Capital Expenditures - Cash provided by operating activities decreased by $741.0 million to $74.4 million for the nine months ended December 31, 2022[171]. - Cash flows used in investing activities increased by $52.2 million compared to the nine months ended December 31, 2021, primarily due to an increase in capital expenditures of $86.3 million, totaling $147.6 million or approximately 3% of net revenues[173]. - Capital expenditures included $48.8 million for the construction of a new global headquarters, aligning with the company's long-term sustainability strategy[173]. - Cash flows used in financing activities decreased by $292.2 million compared to the nine months ended December 31, 2021, with $125.0 million paid for share repurchases[174]. Share Repurchase and Debt - The company repurchased a total of $425 million or 34.9 million shares of Class C Common Stock under its share repurchase program[169]. - The amended credit agreement provides for revolving credit commitments of $1.1 billion, with no amounts outstanding as of December 31, 2022[176]. - The company issued $500.0 million in 1.50% convertible senior notes due 2024, with approximately $80.9 million remaining outstanding after exchanges[178]. - The company issued $600.0 million in 3.250% senior unsecured notes due June 15, 2026, with proceeds used to pay down amounts under the revolving credit facility[180]. Market Conditions and Challenges - The ongoing impacts of COVID-19 in China caused labor disruptions and temporary closures, affecting financial results[126]. - The company anticipates continued challenges from inflationary pressures and fluctuations in foreign currency exchange rates[127]. - The company expects continued pressure on gross margins due to higher discounting, elevated product input costs, and foreign exchange impacts[141]. - The company has not experienced significant changes to its market risk since December 31, 2021[182].

Financial Performance - Total net revenues for the three months ended September 30, 2022, increased by 1.8% compared to the same period in 2021, reaching $1,573,885 thousand[126]. - Net income for the three months ended September 30, 2022, was $86,925 thousand, down from $113,444 thousand in the same period of 2021[133]. - Total net revenues increased by $28.4 million to $1,573.9 million during the three months ended September 30, 2022, a 1.8% increase, driven by growth in EMEA and Asia-Pacific regions[159]. - Total net revenues for the six months ended September 30, 2022, increased by $25.9 million, or 0.9%, to $2,922.9 million compared to $2,897.1 million for the same period in 2021[165]. Revenue Breakdown - Wholesale revenue increased by 4.1%, while direct-to-consumer revenue decreased by 4.4% during the same period[126]. - Net revenue in North America decreased by 2.3%, while EMEA, Asia-Pacific, and Latin America saw increases of 8.9%, 6.5%, and 3.2%, respectively[126]. - North America net revenues decreased by $24.0 million, or 2.3%, to $1,011.8 million, primarily due to declines in wholesale and direct-to-consumer channels[160]. - EMEA net revenues increased by $21.5 million, or 8.9%, to $262.7 million, driven by an increase in the wholesale channel[160]. - Asia-Pacific net revenues increased by $13.8 million, or 6.5%, to $225.7 million, supported by growth in both wholesale and direct-to-consumer channels[160]. - North America net revenues decreased by $20.2 million, or 1.0%, to $1,921.2 million, primarily due to a decline in direct-to-consumer sales[167]. - EMEA region net revenues increased by $19.4 million, or 4.3%, to $467.9 million, driven by an increase in the wholesale channel[167]. - Asia-Pacific region net revenues decreased by $1.9 million, or 0.5%, to $402.4 million, impacted by COVID-19 related restrictions[167]. Cost and Expenses - Gross margin decreased by 560 basis points to 45.4%[126]. - Cost of goods sold increased to $860,051 thousand from $757,428 thousand year-over-year[133]. - Selling, general and administrative expenses decreased by 0.8% to $594,424 thousand[126]. - Selling, general and administrative expenses decreased by $5.0 million, or 0.8%, to $594.4 million for the three months ended September 30, 2022, as a percentage of net revenues decreased to 37.8% from 38.8%[147]. - Cost of goods sold as a percentage of net revenues increased to 54.6% for the three months ended September 30, 2022, compared to 49.0% in the prior year[134]. - Selling, general and administrative expenses increased by $45.8 million, or 4.0%, during the six months ended September 30, 2022, as a percentage of net revenues increased to 40.7% from 39.5%[147]. Profitability - Gross profit decreased by $74.3 million to $713.8 million during the three months ended September 30, 2022, with a gross margin of 45.4%, down from 51.0% in the prior year[142]. - Net income for the three months ended September 30, 2022, was 5.5% of net revenues, down from 7.3% in the same period of 2021[134]. - Total operating income decreased by $52.7 million to $119.4 million during the three months ended September 30, 2022, a 30.6% decrease, primarily due to lower revenues and higher costs[162]. - Total operating income decreased by $139.4 million, or 47.5%, to $153.9 million, primarily due to lower revenues and increased costs[168]. - Operating income in North America decreased by $83.2 million to $209.2 million, a 28.4% decline, attributed to lower revenues and increased costs[163]. - Operating income in North America decreased by $119.0 million, or 22.9%, to $399.1 million, driven by lower gross profit and increased expenses[170]. Cash Flow and Liquidity - Cash flows used in operating activities were $(2.5) million, a decrease of $362.9 million compared to $360.5 million in the prior year[177]. - As of September 30, 2022, the company had approximately $853.7 million in cash and cash equivalents, sufficient to meet liquidity needs for at least the next twelve months[173]. - Cash flows used in financing activities decreased by $365.2 million compared to the six months ended September 30, 2021[182]. Debt and Financing - The company issued $500.0 million aggregate principal amount of 1.50% convertible senior notes due 2024, with net proceeds of $488.8 million[187]. - The company issued $600.0 million aggregate principal amount of 3.250% senior unsecured notes due June 15, 2026, with proceeds used to pay down amounts under the revolving credit facility[190]. - The amended credit agreement provides for revolving credit commitments of $1.1 billion, with no amounts outstanding as of September 30, 2022[183]. - The company is required to maintain a consolidated EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.0 as of September 30, 2022[183]. - The company recognized losses on debt extinguishment of $34.7 million and $23.8 million during the second and third quarters of Fiscal 2021, respectively[187]. - As of September 30, 2022, the company was in compliance with all applicable covenants under the amended credit agreement[183]. - The company has the option to redeem the convertible senior notes at a price equal to 100% of the aggregate principal amount plus accrued interest, under certain conditions[189]. Future Outlook - The company faced increased freight expenses and ongoing COVID-19 related impacts, particularly in China, affecting overall performance[124]. - The company anticipates continued challenges from the COVID-19 pandemic and inflationary pressures impacting future financial results[127][128]. - The fiscal year was changed from December 31 to March 31, with the current fiscal year running from April 1, 2022, to March 31, 2023[132]. Restructuring and Impairment - Restructuring and impairment charges were $0 for the three and six months ended September 30, 2022, compared to $16.7 million and $19.3 million for the same periods in 2021, representing a 100% decrease[148]. Interest and Other Expenses - Interest expense, net decreased by $5.7 million to $3.6 million during the three months ended September 30, 2022, a 61.6% reduction, and decreased by $13.0 million to $9.6 million during the six months ended September 30, 2022, a 57.6% reduction[150]. - Other expense, net decreased by $23.7 million to $5.8 million during the three months ended September 30, 2022, an 80.4% decrease, and decreased by $48.0 million to $20.0 million during the six months ended September 30, 2022, a 70.6% decrease[154]. - Income tax expense increased by $3.3 million to $22.3 million during the three months ended September 30, 2022, a 17.3% increase, while it decreased by $1.1 million to $27.9 million during the six months ended September 30, 2022, a 3.8% decrease[155].