Core Insights - Under Armour is experiencing early progress in its restructuring efforts, which is reflected in its first-quarter fiscal 2025 results that exceeded expectations [3][5] - The company reported a 10% year-over-year decline in revenue, totaling $1.18 billion, but this was above analysts' consensus estimate of $1.14 billion [3][5] - Fiscal 2025 revenue is projected to decline at a low double-digit percentage rate, with earnings expected to swing to a loss between 53 cents and 56 cents per share [5] Financial Performance - Under Armour recognized $34 million of the estimated $70 to $90 million in restructuring charges, with the remainder anticipated in fiscal 2025 [2] - North America revenue decreased by 14%, amounting to $709.3 million [3] - The company reported a per-share loss of 70 cents, which was significantly wider than the expected loss of 27 cents, but posted an adjusted profit of 1 cent per share, contrary to the anticipated adjusted loss of 8 cents [4] Market Reaction - Following the earnings report, Under Armour's shares surged nearly 20% to $7.74, although they remain down about 12% year-to-date in 2024 [5]

Under Armour (NYSE:UA) stock is gaining on Thursday after the company reported positive earnings for its fiscal first quarter of 2025. The latest earnings report from Under Armour starts with its adjusted earnings per share of 1 cent. That's a massive surprise compared to the -8 cents per share Wall Street was expecting. It's also better than the -6 cents from the same time last year. Adding to that is revenue of $1.18 billion for the fiscal first quarter of 2025. That's above the $1.14 billion that analyst ...

Shares of Under Armour Inc (NYSE:UAA) are 17.6% higher at $7.61 this morning, on track for its best session since October 2018 after the athletics apparel retailer reported a surprise quarterly profit and hiked its fiscal 2025 outlook. For the second quarter, Under Armour showed adjusted earnings of 1 cent per share on revenue of $1.18 billion, both of which beat analysts estimates, while CEO and founder Kevin Plank lauded the company's "strongest product organization" it has had in years. On the charts, UA ...

For the quarter ended June 2024, Under Armour (UAA) reported revenue of $1.18 billion, down 10.1% over the same period last year. EPS came in at $0.01, compared to $0.02 in the year-ago quarter. The reported revenue represents a surprise of +3.89% over the Zacks Consensus Estimate of $1.14 billion. With the consensus EPS estimate being -$0.08, the EPS surprise was +112.50%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Under Armour (UAA) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.08 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 112.50%. A quarter ago, it was expected that this sports apparel company would post earnings of $0.07 per share when it actually produced earnings of $0.11, delivering a surprise of 57.14%. Over the last fou ...

Under Armour (UAA) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 8, 2024, might help the stock move higher if these key numbers are better than expec ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Under Armour (UAA) , which belongs to the Zacks Textile - Apparel industry. This sports apparel company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 64.94%. For the last reported quarter, Under Armour came out with earnings of $0.11 per share versu ...

The company has consistently denied the accusations and entered into this agreement in principle, which is not an admission or finding of fault or wrongdoing, given the costs and risks inherent in litigation. "We firmly believe that our sales practices, accounting practices, and disclosures were appropriate, and deny any wrongdoing in this case," said Mehri Shadman, Under Armour's Chief Legal Officer and Corporate Secretary. "Today's announcement allows us to move past this more than seven-year-old matter s ...

Regional Revenue Performance - Net revenues in North America decreased by $315.4 million (8.3%) to $3,505.2 million, driven by declines in both wholesale and direct-to-consumer channels[219] - Net revenues in EMEA increased by $89.3 million (9.0%) to $1,081.9 million, primarily due to growth in direct-to-consumer and wholesale channels, with positive foreign exchange impacts[219] - Net revenues in Asia-Pacific increased by $47.7 million (5.8%) to $873.0 million, driven by growth in both direct-to-consumer and wholesale channels[219] Operating Income and Expenses - Operating income in EMEA increased by $64.0 million (57.1%) to $176.2 million, while North America saw a decrease of $36.8 million (5.1%) to $677.9 million[221] - Total operating income decreased by $33.8 million (12.8%) to $229.8 million, primarily due to declines in North America and increased corporate expenses[221] Cash Flow and Liquidity - Cash flows from operating activities increased by $393.9 million, driven by a $29.9 million increase in net income and a $364.0 million increase from changes in working capital[238] - Net cash provided by operating activities for the year ended March 31, 2024 was $353.97 million, compared to a net cash used of $39.89 million in the previous year[308] - Total cash, cash equivalents, and restricted cash at the end of March 31, 2024 was $876.92 million, an increase from $726.75 million at the end of the previous year[310] Debt and Obligations - Long-term debt obligations totaled $730.3 million, with $101.0 million due within one year and $629.3 million due in 1-3 years[233] - Operating lease obligations totaled $1,005.6 million, with $178.7 million due within one year and $286.6 million due in 1-3 years[233] - Product purchase obligations totaled $1,144.1 million, all due within one year[233] - The company may enter into long-term debt arrangements with various lenders to maintain liquidity and fund business operations, which may include interest rate swap contracts to reduce the impact of interest rate fluctuations[273] Financial Position and Assets - Total assets as of March 31, 2024, were $4.76 billion, compared to $4.82 billion in the previous year[298] - Cash and cash equivalents increased significantly to $858.69 million from $71 million year-over-year[298] - Accounts receivable, net, stood at $757.34 million, up from $75 million in the previous year[298] - Inventories increased to $958.50 million from $1.18 million year-over-year[298] - Total current liabilities were $1.17 billion, compared to $1.35 billion in the previous year[298] - Long-term debt, net of current maturities, was $594.87 million, down from $67 million year-over-year[298] - Retained earnings increased to $1.05 billion from $89 million in the previous year[298] - Accumulated other comprehensive income (loss) was $(77.12) million, compared to $(6) million year-over-year[298] - Stockholders' equity increased to $2.15 billion from $1.96 billion in the previous year[298] Taxes and Interest Payments - The company accrued $0.7 million in excise tax related to share repurchases under the Inflation Reduction Act[231] - Cash paid for income taxes, net of refunds, for the year ended March 31, 2024 was $83.13 million, compared to $28.54 million in the previous year[310] - Cash paid for interest, net of capitalized interest, for the year ended March 31, 2024 was $4.43 million, compared to $19.22 million in the previous year[310] Internal Controls and Financial Reporting - The company identified material weaknesses in internal control over financial reporting as of March 31, 2024[283] Net Income and Profitability - Net income for the year ended March 31, 2024 was $232.04 million, a decrease from $374.46 million in the previous year[308] Revisions and Adjustments - Total current assets as of March 31, 2023 were revised to $2.95 billion, a decrease of $11.10 million from the previously reported amount[324] - Total liabilities as of March 31, 2023 were revised to $2.86 billion, an increase of $2.73 million from the previously reported amount[324] - Total stockholders' equity as of March 31, 2023 was revised to $1.97 billion, a decrease of $32.26 million from the previously reported amount[324] Inflationary Pressures - Inflationary pressures may continue to adversely affect the company's operating results, including product input costs, freight costs, and consumer discretionary spending[278]

Financial Data and Key Metrics Changes - Revenue for fiscal 2024 decreased by 3% to $5.7 billion, primarily due to challenges in the North American market, partially offset by international growth [43][44] - Gross margin increased by 130 basis points to 46.1%, driven by supply chain benefits related to lower freight and product costs [43] - Inventory decreased by 19% to $958 million, approaching pre-pandemic levels [43] Business Line Data and Key Metrics Changes - North American revenue declined by 10% to $1.3 billion, attributed to softer wholesale demand and lower sales to the off-price channel [25][68] - Direct-to-consumer (DTC) business was flat, with a 7% growth in stores offset by a 7% decline in e-commerce [68] - EMEA revenue increased by 10% or 7% on a currency-neutral basis, while APAC revenue was up 1% or 5% on a currency-neutral basis [25][41] Market Data and Key Metrics Changes - The anticipated decline in North American revenue is driven by lower wholesale revenue due to retailer cautiousness amid softer consumer demand [21] - International regions are expected to see revenue down at a low single-digit rate due to conservative macro consumer trends [5][66] Company Strategy and Development Direction - The company is focusing on reconstituting its brand in North America, prioritizing men's apparel while not deprioritizing footwear or women's business [12][24] - A restructuring plan is in place to streamline operations, with expected SG&A expenses down by 2% to 4% in fiscal 2025 [6][20] - The company aims to enhance its product offerings and storytelling, emphasizing a direct-to-consumer line of exclusive products [15][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need to improve brand perception and execution, particularly in North America, and emphasizes a commitment to elevating the brand [12][21] - The leadership team is focused on building a more collaborative culture and simplifying the operating model to drive efficiencies [18][19] - The company expects a low double-digit revenue decline in fiscal 2025 but is optimistic about gross margin improvement [44][72] Other Important Information - The company plans to incur total estimated pre-tax restructuring charges of approximately $70 million to $90 million [71] - A new three-year, $500 million share buyback program has been approved to enhance shareholder value [73] Q&A Session All Questions and Answers Question: What is the timeline for North America to return to growth? - Management indicated that it is not expected to happen overnight and is using an 18-month outlook for improvement [78] Question: How is the company addressing the e-commerce channel? - The company is focused on reducing promotions to create a cleaner story online and improve the alignment of product and storytelling [93] Question: What is the outlook for international markets? - Management is cautiously optimistic, leveraging past experiences to approach international growth while maintaining brand integrity [90][92]