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Under Armour reports solid fourth quarter

May 11, 2023 United States
Under Armour reports solid fourth quarter
The US-based company posted profits in the fourth quarter of fiscal 2023, on a comparable basis to the same period of fiscal 2022, and delivered full-year revenue and earnings in line with the previous outlook
“I'm honoured to lead this iconic brand, and I'm pleased that Under Armour delivered fiscal 2023 revenue and earnings results that were in line with our previous outlook. Fiscal 2024 will be a year of building for the brand. I am prioritizing significantly amplifying global brand heat; delivering elevated design and products, with a focus on Sportstyle, footwear, and women; and positioning us to drive better sales growth in the United States”, commented Under Armour President and CEO Stephanie Linnartz.

Fourth Quarter Results

In the three months to the 31st of March, the company's revenue amounted to 1.4 billion US dollars, reflecting a growth of 8% (of 10% currency neutral), on a comparable basis to the same period of last year. It's noteworthy the performance of the footwear segment in this period – growth of 27% year-over-year that added to 378 million US dollars – while apparel revenue was up by 1%, reaching 889 million US dollars, and accessories revenue declined by 1% to 96 million US dollars.

By distribution channel, in the last quarter of fiscal 2023, Under Armour's wholesale revenue grew by 10%, totalling 909 million US dollars, and its direct-to-consumer revenue increased by 3% to 454 million US dollars, as compared to the same quarter of fiscal 2022; concerning the latter, the company highlighted that e-commerce revenue rose by 6%, representing 46% of the total direct-to-consumer business in the quarter.

In the fourth quarter of the last fiscal year, the company registered a revenue increase of 3% in the North American region, which amounted to 862 million US dollars, while international revenue was up by 16% (by 21% currency neutral), reaching 526 million US dollars, on a comparable basis to the similar quarter of the previous fiscal year. Within the international business, revenue grew by 14% in the EMEA region (by 20% currency neutral) and by 24% in the Asia-Pacific region (up by 31% currency neutral), but decreased by 8% in the Latin America region (down by 13% currency neutral).

Under Armour's fourth-quarter gross margin narrowed by 310 basis points to 43.4%, as compared to the same quarter of fiscal 2022, “driven primarily by higher promotions, mix impacts related to higher footwear revenue, and adverse effects from changes in foreign currency”.

In the last quarter of fiscal 2023, the company's net income was 171 million US dollars, or diluted earnings per share of 0.38 US dollars, on a comparable basis to the net loss of 59.61 million US dollars registered in the same quarter of the previous year. Accordingly, adjusted net income totalled 84 million US dollars, or adjusted diluted earnings per share of 0.18 US dollars.


Full Year 2023

Under Armour's revenue reached 5.9 billion US dollars in the twelve months to the 31st of March 2023, up by 3% (by 6% currency neutral) as compared to full year 2022.

The Baltimore-based company's net income amounted to 387 million US dollars, or diluted earnings per share of 0.84 US dollars, during the last fiscal year, on a comparable basis to a net income of 222 million US dollars, or diluted earnings per share of 0.47 US dollars, recorded in the prior fiscal year. Accordingly, adjusted net income totalled 266 million US dollars, or 0.58 US dollars in earnings per diluted share.

Fiscal 2024 Outlook

For fiscal 2024, Under Armour is expecting flat to up slightly revenue over this past year and diluted earnings per share between 0.47 US dollars and 0.51 US dollars.


Image Credits: bizjournals.com

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