$UA (+3.89%)

$UAA (+3.04%) | Under Armour Q3 '24 Earnings Highlights:

🔹 Adj EPS: $0.30 (Est. $0.19) 🟢

🔹 Revenue: $1.4B (Est. $1.38B) 🟢; DOWN -11% YoY

🔹 Gross Margin: 49.8%, UP 200 bps YoY

🔹 Adj Operating Income: $166M (excluding one-time items)

🔹 Inventory: DOWN -3% YoY to $1.1B

Raised FY25 Outlook:

🔹 Adj EPS: $0.24-$0.27 (Prev. $0.19-$0.21) 🟢

🔹 Adj Operating Income: $165M-$185M (Prev. $140M-$160M) 🟢

🔹 Revenue: Expected to decline at a low double-digit percentage

🔹 North America: -14% to -16%

🔹 International: Low single-digit percent decline

🔹 Gross Margin: Expected to increase by 125-150 bps

🔹 Adjusted SG&A Expenses: Expected to decrease low-to-mid single digits (excluding litigation and transformation expenses)

🔹 Capital Expenditures: $190M-$210M

Q3 Demography Revenue:

🔹 North America: $863M; DOWN -13% YoY

🔹 International: $538M; DOWN -6% YoY

🔹 EMEA: DOWN -1%

🔹 Asia-Pacific: DOWN -11%

🔹 Latin America: DOWN -13%

Revenue Channels:

🔹 Wholesale Revenue: $826M; DOWN -12% YoY

🔹 Direct-to-Consumer (DTC) Revenue: $550M; DOWN -8% YoY

🔹 eCommerce Revenue: DOWN -21%; accounts for 30% of DTC

Product Categories:

🔹 Apparel: $947M; DOWN -12% YoY

🔹 Footwear: $313M; DOWN -11% YoY

🔹 Accessories: $116M; UP +2% YoY

CEO Kevin Plank's Commentary:

🔸 "Our strategy to elevate Under Armour’s brand positioning is gaining traction, as evidenced by better-than-expected profitability, allowing us to raise our full-year outlook while increasing brand investment for long-term growth."

Fiscal 2025 Restructuring Plan:

🔹 Total estimated charges of $140M-$160M, with up to $75M in cash-related expenses