Under Armour(UAA) - 2024 Q2 - Quarterly Report

Cover Page Information This section provides essential filing details for the Form 10-Q, including registrant information and outstanding common stock Form 10-Q Details This section details Form 10-Q filing information for Under Armour, Inc., including registrant status and outstanding shares - Under Armour, Inc. is filing its Quarterly Report on Form 10-Q for the period ended September 30, 2023[2] Outstanding Common Stock as of October 31, 2023 | Class of Stock | Shares Outstanding | | :--------------- | :----------------- | | Class A Common Stock | 188,786,069 | | Class B Convertible Common Stock | 34,450,000 | | Class C Common Stock | 214,917,103 | - The registrant is classified as a Large accelerated filer[3] PART I - FINANCIAL INFORMATION This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Financial Statements This section presents Under Armour, Inc.'s unaudited condensed consolidated financial statements, outlining financial health and performance Condensed Consolidated Balance Sheets The balance sheets show a slight decrease in total assets and liabilities, with an increase in stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands of US dollars) | Metric | Sep 30, 2023 | Mar 31, 2023 | Change | | :-------------------------- | :----------- | :----------- | :----- | | Total Assets | $4,746,553 | $4,857,080 | $(110,527) | | Total Liabilities | $2,656,811 | $2,858,680 | $(201,869) | | Total Stockholders' Equity | $2,089,742 | $1,998,400 | $91,342 | - Cash and cash equivalents decreased from $711.9 million to $655.9 million[8] - Inventories decreased from $1.19 billion to $1.14 billion[8] Condensed Consolidated Statements of Operations Net revenues slightly decreased, but gross profit and net income increased due to improved gross margin Key Financial Performance (in thousands of US dollars, except per share) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | Change ($) | Change (%) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | :--------- | | Net revenues | $1,566,710 | $1,573,885 | $(7,175) | (0.5)% | | Gross profit | $751,995 | $713,834 | $38,161 | 5.3% | | Income from operations | $145,759 | $119,410 | $26,349 | 22.1% | | Net income (loss) | $109,614 | $86,925 | $22,689 | 26.1% | | Basic EPS | $0.25 | $0.19 | $0.06 | 31.6% | | Diluted EPS | $0.24 | $0.19 | $0.05 | 26.3% | | Metric | 6 Months Ended Sep 30, 2023 | 6 Months Ended Sep 30, 2022 | Change ($) | Change (%) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | :--------- | | Net revenues | $2,883,722 | $2,922,942 | $(39,220) | (1.3)% | | Gross profit | $1,359,731 | $1,344,031 | $15,700 | 1.2% | | Income from operations | $166,689 | $153,893 | $12,796 | 8.3% | | Net income (loss) | $118,163 | $94,607 | $23,556 | 24.9% | | Basic EPS | $0.27 | $0.21 | $0.06 | 28.6% | | Diluted EPS | $0.26 | $0.20 | $0.06 | 30.0% | Condensed Consolidated Statements of Comprehensive Income (Loss) Comprehensive income increased for both periods, driven by higher net income and positive shifts in unrealized gains Comprehensive Income (Loss) (in thousands of US dollars) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | Change ($) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Net income (loss) | $109,614 | $86,925 | $22,689 | | Foreign currency translation adjustment | $(12,631) | $(16,974) | $4,343 | | Unrealized gain (loss) on cash flow hedges, net of tax | $26,486 | $49,412 | $(22,926) | | Gain (loss) on intra-entity foreign currency transactions | $(989) | $(16,010) | $15,021 | | Total other comprehensive income (loss) | $12,866 | $16,428 | $(3,562) | | Comprehensive income (loss) | $122,480 | $103,353 | $19,127 | | Metric | 6 Months Ended Sep 30, 2023 | 6 Months Ended Sep 30, 2022 | Change ($) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Net income (loss) | $118,163 | $94,600 | $23,563 | | Foreign currency translation adjustment | $(8,078) | $(40,490) | $32,412 | | Unrealized gain (loss) on cash flow hedges, net of tax | $18,230 | $91,890 | $(73,660) | | Gain (loss) on intra-entity foreign currency transactions | $(9,371) | $(29,540) | $20,169 | | Total other comprehensive income (loss) | $781 | $21,850 | $(21,069) | | Comprehensive income (loss) | $118,944 | $116,450 | $2,494 | Condensed Consolidated Statements of Stockholders' Equity The statements detail equity changes, showing an increase in total stockholders' equity, partially offset by share repurchases - Total stockholders' equity increased by $91.3 million from $1.998 billion (March 31, 2023) to $2.090 billion (September 30, 2023)[8][20] - The company repurchased $50.0 million of Class C Common Stock under its share repurchase program during the three and six months ended September 30, 2023, and 2022, respectively[20][93][208] - Retained earnings increased from $929.6 million (March 31, 2023) to $994.1 million (September 30, 2023)[8][20] Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities significantly improved, driven by increased net income and favorable working capital Cash Flow Summary (in thousands of US dollars) | Activity | 6 Months Ended Sep 30, 2023 | 6 Months Ended Sep 30, 2022 | Change ($) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Net cash provided by (used in) operating activities | $64,243 | $(2,499) | $66,742 | | Net cash provided by (used in) investing activities | $(39,144) | $(58,864) | $19,720 | | Net cash provided by (used in) financing activities | $(50,537) | $(48,788) | $(1,749) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(54,109) | $(154,113) | $100,004 | - Operating cash flow improved by $66.7 million, primarily due to a $40.0 million increase in net income before non-cash items and a $26.7 million increase from working capital changes[211] - Inventories contributed $33.3 million cash inflow in 2023, a significant improvement from a $266.8 million outflow in 2022[23][211] [Notes to the Condensed