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Under Armour with 15% decline in 2020 revenue

Feb 16, 2021 United States
Under Armour with 15% decline in 2020 revenue
The Baltimore-based announced unaudited financial results for the fourth quarter and fiscal year ended on the 31st of December 2020. Revenue was down by 15% in 2020 and by 3% in the last quarter
"Improving brand strength and consistent operational execution delivered better than expected results in the fourth quarter", commented Under Armour President and CEO Patrik Frisk. "Our global team was exceptionally resilient and disciplined amid a highly challenging year which included the COVID-19 pandemic and for Under Armour, a comprehensive restructuring effort including further operating model refinements. As we continue to navigate uncertainty around the pandemic, we remain focused on execution and the efforts necessary to stabilize our business further and improve our ability to deliver sustainable shareholder value over the long-term."

Fourth Quarter Review

Revenue was down by 3% to 1.4 billion US dollars. Wholesale revenue decreased by 12% to 662 million US dollars and direct-to-consumer revenue increased by 11% to 655 million US dollars, driven by 25% growth in eCommerce. North America revenue decreased by 6% to 924 million US dollars and international revenue increased by 7% to 448 million US dollars (up by 4% currency neutral). Within the international business, revenue decreased by 11% in EMEA (down by 14% currency neutral), increased by 26% in Asia-Pacific (up by 21% currency neutral), and increased by 2% in Latin America (up by 8% currency neutral). Apparel revenue decreased by 4% to 931 million US dollars. Footwear revenue declined by 7% to 241 million US dollars. Accessories revenue increased by 32% to 145 million US dollars. Net income totalled 184 million US dollars. Adjusted net income was 55 million US dollars.

Full Year Review

Revenue was down by 15% to 4.5 billion US dollars. Wholesale revenue decreased by 25% to 2.4 billion US dollars and direct-to-consumer revenue increased by 2% to 1.8 billion US dollars, driven by 40% growth in eCommerce, which represented 47% of total direct-to-consumer revenue. North America revenue decreased by 19% to 2.9 billion US dollars and international revenue decreased by 4% to 1.4 billion US dollars. Within the international business, revenue decreased by 4% in EMEA (down by 5% currency neutral), decreased by 1% in Asia-Pacific (down by 2% currency neutral), and decreased by 16% in Latin America (down by 10% currency neutral). Apparel revenue decreased by 17% to 2.9 billion US dollars. Footwear revenue declined 14 percent to 934 million US dollars. Accessories revenue was relatively flat at 414 million US dollars. Net loss totaled 549 million US dollars. Adjusted net loss was 120 million US dollars.

2021 Outlook

Based on current visibility, including ongoing impacts related to COVID-19, revenue is expected to be up at a high-single-digit percentage rate, reflecting a high single-digit growth rate in North America and a high-teens growth rate in the international business.

Image credits: twitter.com/therealmobamba

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