Revenue Performance - Revenue for Q4 fiscal 2024 decreased by 5% to $1.3 billion, with North America revenue down 10% to $772 million and international revenue up 7% to $561 million[2] - Full-year fiscal 2024 revenue decreased by 3% to $5.7 billion, with North America revenue down 8% to $3.5 billion and international revenue up 8% to $2.2 billion[5] - Net revenues for Q1 2024 decreased by 4.7% to $1,332.2 million compared to $1,398.6 million in Q1 2023[19][21] - North America segment revenues declined by 10.4% to $771.9 million in Q1 2024[21] - EMEA segment revenues increased by 9.5% to $284.1 million in Q1 2024[21] - Wholesale channel revenues decreased by 6.5% to $849.8 million in Q1 2024[23] - Direct-to-consumer channel revenues remained flat at $454.7 million in Q1 2024[23] - Apparel revenues decreased by 1.3% to $877.3 million in Q1 2024[25] - Footwear revenues declined by 10.6% to $337.7 million in Q1 2024[25] - Net revenues for Fiscal 2024 were $5,701,879, a decrease of 3.4% compared to Fiscal 2023's $5,903,165[51] - Currency-neutral net revenue growth for the year ended March 31, 2024, was -3.6%, with North America showing a decline of -8.0% and Asia-Pacific growing by 9.3%[34] Gross Margin and Profitability - Gross margin for Q4 fiscal 2024 increased by 170 basis points to 45.0%, driven by lower product and freight costs[2] - Gross margin for full-year fiscal 2024 increased by 130 basis points to 46.1%, driven by lower freight and product costs[5] - Gross profit margin improved to 45.0% in Q1 2024 from 43.3% in Q1 2023[19] - Gross profit for Fiscal 2024 was $2,630,253, representing 46.1% of net revenues, compared to 44.8% in Fiscal 2023[51] - Cost of goods sold for Fiscal 2024 was $3,071,626, representing 53.9% of net revenues, compared to 55.2% in Fiscal 2023[51] - Fiscal 2025 gross margin is expected to increase by 75-100 basis points, driven by reduced promotional activities and product costing benefits[10] Inventory and Cash Flow - Inventory decreased by 19% to $958 million at the end of Q4 fiscal 2024[2] - Cash and cash equivalents increased to $858.7 million as of March 31, 2024, up from $710.9 million in 2023[29] - Net cash provided by operating activities for 2024 was $353,970 thousand, compared to a net cash used of $39,886 thousand in 2023[31] Operating Income and Expenses - Fiscal 2025 operating income is expected to be $50-70 million, with adjusted operating income expected to be $130-150 million[10] - Income from operations for Fiscal 2024 was $229,751, a decrease of 12.8% compared to Fiscal 2023's $263,586[51] - Selling, general and administrative expenses for Fiscal 2024 were $2,400,502, representing 42.1% of net revenues, compared to 40.3% in Fiscal 2023[51] - Adjusted operating income for the year ended March 31, 2024, was $309,751 thousand, up from $229,751 thousand under GAAP[39] - The company expects GAAP income from operations for the year ending March 31, 2025, to be between $50 million and $70 million, with adjusted income from operations projected at $130 million to $150 million[47] Net Income and Earnings Per Share - Net income for the year ended March 31, 2024, was $232,042 thousand, a decrease from $374,459 thousand in 2023[31] - Adjusted net income for the year ended March 31, 2024, was $244,829 thousand, compared to GAAP net income of $232,042 thousand[41] - Adjusted diluted net income per share for 2024 was $0.54, up from $0.52 under GAAP[43] - Adjusted diluted net income per share for 2025 is estimated to be between $0.18 and $0.21, compared to GAAP estimates of $0.02 to $0.05[48] Share Repurchase and Capital Expenditures - Under Armour announced a new $500 million share repurchase program[7] - Fiscal 2025 capital expenditures are expected to be between $200-220 million[10] Store and Door Counts - Total company-owned and operated doors increased to 440 in 2024 from 439 in 2023, with North America doors increasing to 200 from 194[53] - International total doors decreased to 240 in 2024 from 245 in 2023, primarily due to a reduction in Brand House doors from 80 to 67[53] - Factory House doors increased globally from 341 in 2023 to 356 in 2024, while Brand House doors decreased from 98 to 84[53] Financial Revisions and Adjustments - The company revised its prior period financial statements for accounting corrections related to cost of goods sold and selling, general and administrative expenses, with no material impact on previously filed financial statements[50] Future Revenue Expectations - Fiscal 2025 revenue is expected to decline by a low-double-digit percentage, with North America revenue expected to decline by 15-17%[10]
Under Armour(UAA) - 2024 Q4 - Annual Results