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]
Under Armour(UAA) - 2024 Q4 - Annual Report