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Under Armour(UA) - 2024 Q4 - Annual Results
UAUnder Armour(UA)2024-05-16 11:52

Revenue Performance - Revenue for Q4 fiscal 2024 decreased by 5% to 1.3billion,withNorthAmericarevenuedown101.3 billion, with North America revenue down 10% to 772 million and international revenue up 7% to 561million[4]−Full−yearfiscal2024revenuedecreasedby3561 million[4] - Full-year fiscal 2024 revenue decreased by 3% to 5.7 billion, with North America revenue down 8% to 3.5billionandinternationalrevenueup83.5 billion and international revenue up 8% to 2.2 billion[5] - Net revenues for Q1 2024 decreased by 4.7% to 1,332.2millioncomparedto1,332.2 million compared to 1,398.6 million in Q1 2023[18][20] - North America net revenues declined by 10.4% to 771.9millioninQ12024[20]−EMEAnetrevenuesincreasedby9.5771.9 million in Q1 2024[20] - EMEA net revenues increased by 9.5% to 284.1 million in Q1 2024[20] - Latin America net revenues increased by 20.2% to 50.2millioninQ12024[20]−Totalnetrevenuedeclinedby3.450.2 million in Q1 2024[20] - Total net revenue declined by 3.4% on a GAAP basis and 3.6% on a currency-neutral basis for the year ended March 31, 2024[31] - North America net revenue declined by 8.3% on a GAAP basis and 8.0% on a currency-neutral basis for the year ended March 31, 2024[31] - EMEA net revenue grew by 9.0% on a GAAP basis and 5.7% on a currency-neutral basis for the year ended March 31, 2024[31] - Asia-Pacific net revenue grew by 5.8% on a GAAP basis and 9.3% on a currency-neutral basis for the year ended March 31, 2024[31] - Net revenues for Fiscal 2024 were 5,701.879 million, a decrease of 3.4% compared to Fiscal 2023's 5,903.165million[41][42]GrossMarginandProfitability−GrossmarginforQ4fiscal2024increasedby170basispointsto45.05,903.165 million[41][42] Gross Margin and Profitability - Gross margin for Q4 fiscal 2024 increased by 170 basis points to 45.0%, driven by lower product and freight costs[4] - Full-year fiscal 2024 gross margin increased by 130 basis points to 46.1%, primarily due to lower freight and product costs[5] - Gross profit margin improved to 45.0% in Q1 2024 from 43.3% in Q1 2023[18] - Gross profit for Fiscal 2024 was 2,630.253 million, representing 46.1% of net revenues, compared to 44.8% in Fiscal 2023[41][42] - Fiscal 2025 gross margin is expected to increase by 75-100 basis points, driven by reduced promotional activities and product costing benefits[8] Operating Income and Expenses - Fiscal 2025 operating income is expected to be 50−70million,withadjustedoperatingincomeexpectedtobe50-70 million, with adjusted operating income expected to be 130-150 million[8] - Operating income (loss) was (3.6)millioninQ12024comparedto(3.6) million in Q1 2024 compared to 29.6 million in Q1 2023[24] - Asia-Pacific operating income margin improved to 14.8% in Q1 2024 from 10.4% in Q1 2023[24] - Income from operations for Fiscal 2024 was 229.751million,adecreaseof12.8229.751 million, a decrease of 12.8% from Fiscal 2023's 263.586 million[41][42] - The company expects GAAP income from operations to be between 50millionand50 million and 70 million for the year ending March 31, 2025[38] - Selling, general and administrative expenses for Fiscal 2024 were 2,400.502million,representing42.12,400.502 million, representing 42.1% of net revenues, compared to 40.3% in Fiscal 2023[41][42] Earnings and Share Repurchase - Fiscal 2025 diluted earnings per share is expected to be between 0.02 and 0.05,withadjusteddilutedearningspershareexpectedtobebetween0.05, with adjusted diluted earnings per share expected to be between 0.18 and 0.21[8]−Adjusteddilutednetincomepershareisexpectedtobebetween0.21[8] - Adjusted diluted net income per share is expected to be between 0.18 and 0.21fortheyearendingMarch31,2025[39]−Thecompanyannouncedanew0.21 for the year ending March 31, 2025[39] - The company announced a new 500 million share repurchase program[9] Restructuring and Charges - Fiscal 2025 restructuring plan includes estimated pre-tax charges of 70−90million,withupto70-90 million, with up to 50 million in cash-related charges and up to 40millioninnon−cashcharges[6]RegionalPerformance−NorthAmericatotaldoorsincreasedby6to200inMarch2024,withFactoryHousedoorsincreasingby7to183andBrandHousedoorsdecreasingby1to17[43]−Internationaltotaldoorsdecreasedby5to240inMarch2024,withFactoryHousedoorsincreasingby8to173andBrandHousedoorsdecreasingby13to67[43]−Totaldoorsincreasedby1to440inMarch2024,withFactoryHousedoorsincreasingby15to356andBrandHousedoorsdecreasingby14to84[43]CashFlowandAssets−Cashandcashequivalentsincreasedby20.840 million in non-cash charges[6] Regional Performance - North America total doors increased by 6 to 200 in March 2024, with Factory House doors increasing by 7 to 183 and Brand House doors decreasing by 1 to 17[43] - International total doors decreased by 5 to 240 in March 2024, with Factory House doors increasing by 8 to 173 and Brand House doors decreasing by 13 to 67[43] - Total doors increased by 1 to 440 in March 2024, with Factory House doors increasing by 15 to 356 and Brand House doors decreasing by 14 to 84[43] Cash Flow and Assets - Cash and cash equivalents increased by 20.8% from 710,929 thousand in 2023 to 858,691thousandin2024[26]−Netcashprovidedbyoperatingactivitiesimprovedsignificantlyfromanegative858,691 thousand in 2024[26] - Net cash provided by operating activities improved significantly from a negative 39,886 thousand in 2023 to a positive 353,970thousandin2024[29]−Totalassetsdecreasedby1.4353,970 thousand in 2024[29] - Total assets decreased by 1.4% from 4,827,553 thousand in 2023 to 4,760,734thousandin2024[26]NetIncomeandCostofGoodsSold−Netincomedecreasedby38.04,760,734 thousand in 2024[26] Net Income and Cost of Goods Sold - Net income decreased by 38.0% from 374,459 thousand in 2023 to 232,042thousandin2024[29]−CostofgoodssoldforFiscal2024was232,042 thousand in 2024[29] - Cost of goods sold for Fiscal 2024 was 3,071.626 million, representing 53.9% of net revenues, compared to 55.2% in Fiscal 2023[41][42] Product Sales Performance - Direct-to-consumer net revenues grew by 0.2% to 454.7millioninQ12024[21]−Apparelnetsalesdecreasedby1.3454.7 million in Q1 2024[21] - Apparel net sales decreased by 1.3% to 877.3 million in Q1 2024[22] - Footwear net sales declined by 10.6% to $337.7 million in Q1 2024[22]