Workflow
Under Armour(UAA) - 2025 Q3 - Quarterly Results
UAAUnder Armour(UAA)2025-02-06 12:43

Revenue Performance - Revenue for Q3 Fiscal 2025 decreased by 6% to 1.4billion,withNorthAmericarevenuedown81.4 billion, with North America revenue down 8% to 844 million and international revenue down 1% to 558million[3].−Thecompanyexpectsarevenuedeclineofapproximately10558 million[3]. - The company expects a revenue decline of approximately 10% for Fiscal 2025, with a projected 12-13% decline in North America[7]. - Net revenues for the three months ended December 31, 2024, were 1,401,039, a decrease of 5.7% compared to 1,486,043inthesameperiodof2023[20].−NorthAmericasegmentrevenuesdecreasedby7.81,486,043 in the same period of 2023[20]. - North America segment revenues decreased by 7.8% to 843,620 for the three months ended December 31, 2024, compared to 915,335in2023[20].−TotalnetrevenuefortheninemonthsendedDecember31,2024,declinedby8.8915,335 in 2023[20]. - Total net revenue for the nine months ended December 31, 2024, declined by 8.8% on a GAAP basis, with currency-neutral net revenue growth also declining by 8.7%[33]. - North America experienced a net revenue decline of 11.6% on a GAAP basis, with currency-neutral net revenue growth declining by 11.5%[33]. Profitability Metrics - Gross margin increased by 240 basis points to 47.5%, attributed to reduced direct-to-consumer discounting and lower product and freight costs[3]. - Operating income was reported at 14 million, with adjusted operating income at 60millionafterexcludingcertaincharges[3].−Netincomeforthequarterwas60 million after excluding certain charges[3]. - Net income for the quarter was 1 million, while adjusted net income stood at 35million[3].−GrossprofitforthethreemonthsendedDecember31,2024,was35 million[3]. - Gross profit for the three months ended December 31, 2024, was 665,155, representing 47.5% of net revenues, compared to 670,639or45.1670,639 or 45.1% in 2023[20]. - The company reported a net income of 1,234 for the three months ended December 31, 2024, compared to a net income of 110,753in2023[20].−AdjustednetincomefortheninemonthsendedDecember31,2024,was110,753 in 2023[20]. - Adjusted net income for the nine months ended December 31, 2024, was 169.77 million, compared to a GAAP net loss of 133.81million[41].ExpensesandCosts−Selling,general,andadministrativeexpensesroseby6133.81 million[41]. Expenses and Costs - Selling, general, and administrative expenses rose by 6% to 638 million, primarily due to increased marketing investments[3]. - Selling, general and administrative expenses increased to 637,701,accountingfor45.5637,701, accounting for 45.5% of net revenues, up from 40.3% in the prior year[20]. Future Projections - Gross margin is anticipated to improve by approximately 160 basis points, driven by reduced discounting and lower costs[7]. - Operating loss for Fiscal 2025 is expected to be between 179 million and 189million,withadjustedoperatingincomeprojectedat189 million, with adjusted operating income projected at 185 million to 195million[7].−ThecompanyplansforaGAAPlossfromoperationsinthefiscalyearendingMarch31,2025,estimatedbetween195 million[7]. - The company plans for a GAAP loss from operations in the fiscal year ending March 31, 2025, estimated between 179 million and 189million[47].−TheadjusteddilutedearningspershareforthefiscalyearendingMarch31,2025,isprojectedtobebetween189 million[47]. - The adjusted diluted earnings per share for the fiscal year ending March 31, 2025, is projected to be between 0.28 and 0.30[48].CashFlowandFinancialPosition−Thecompany′scashflowsfromoperatingactivitiesgenerated0.30[48]. Cash Flow and Financial Position - The company's cash flows from operating activities generated 142.88 million, a decrease from 476.86millionintheprioryear[30].−Cashandcashequivalentsdecreasedto476.86 million in the prior year[30]. - Cash and cash equivalents decreased to 726,877 as of December 31, 2024, from 858,691asofMarch31,2024[28].−UnderArmour′scashandcashequivalentsdecreasedto858,691 as of March 31, 2024[28]. - Under Armour's cash and cash equivalents decreased to 745.17 million from 1,057.22millionyear−over−year[30].−TotalliabilitiesasofDecember31,2024,were1,057.22 million year-over-year[30]. - Total liabilities as of December 31, 2024, were 2,646,242, compared to 2,607,448asofMarch31,2024[28].InventoryandReceivables−Inventoriesincreasedto2,607,448 as of March 31, 2024[28]. Inventory and Receivables - Inventories increased to 1,100,530 as of December 31, 2024, compared to 958,495asofMarch31,2024[28].−Thecompanyreportedasignificantincreaseinaccountsreceivable,totaling958,495 as of March 31, 2024[28]. - The company reported a significant increase in accounts receivable, totaling 136.66 million, compared to 58.04millioninthepreviousyear[30].ShareholderActions−UnderArmourrepurchased58.04 million in the previous year[30]. Shareholder Actions - Under Armour repurchased 25 million of Class C common stock, retiring 2.8 million shares as part of a 500millionsharebuybackprogram[4].Direct−to−ConsumerandLicensingRevenue−Thecompanyexperiencedadeclineindirect−to−consumerrevenuesby9.1500 million share buyback program[4]. Direct-to-Consumer and Licensing Revenue - The company experienced a decline in direct-to-consumer revenues by 9.1% to 672,948 for the three months ended December 31, 2024[22]. - Licensing revenues decreased by 17.8% to 23,904forthethreemonthsendedDecember31,2024,comparedto23,904 for the three months ended December 31, 2024, compared to 29,069 in 2023[22]. Store Count - Under Armour's total company-owned and operated doors decreased from 440 in December 2023 to 448 in December 2024, with North America total doors decreasing from 200 to 196[50].