NYSE$UA
Under Armour · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Under Armour's first quarter of fiscal year 2023 resulted in flat revenue and updated full-year outlook.
Under Armour reported flat revenue of $1.3 billion for the first quarter of fiscal year 2023. The company is maintaining its full-year revenue outlook and navigating the current environment with a focus on brand strength and innovation. Diluted earnings per share was $0.02.
- Revenue was flat at $1.3 billion, up 2% currency neutral.
- Wholesale revenue increased 3% to $792 million, while direct-to-consumer revenue decreased 7% to $521 million.
- Gross margin declined 280 basis points to 46.7% due to elevated freight expenses, higher promotions, and foreign currency changes.
- Net Income was $8 million, with diluted earnings per share at $0.02.
Headline financials
Revenue & EPS history
Under Armour · Revenue · Quarterly
$1.35B
Revenue by segment
Under Armour · $1.31B total across 3 segments · Q1 2023
- Apparel$868M-0.9%66.2%
- Footwear$347M+17.0%26.5%
- Accessories$96.8M+0.0%7.4%
Forward guidance
Under Armour updated its fiscal year 2023 outlook, maintaining revenue growth expectations but revising gross margin and earnings per share estimates.
Tailwinds
- No change to the previous expectation of 5 to 7 percent revenue growth.
- Excluding approximately 200 basis points of anticipated foreign currency headwinds, currency-neutral revenue is expected to be up 7 to 9 percent.
- Selling, general & administrative expenses are expected to be flat to the prior year as the company prioritizes investments and implements mitigation measures in response to anticipated gross margin pressure.
- Capital expenditures are expected to be approximately $225 million, consistent with the previously provided range of 3 percent to 5 percent of revenue.
- Includes a $0.28 benefit related to a tax valuation allowance release expected to be realized during the fiscal year.
Headwinds
- Gross margin is expected to be down 375 to 425 basis points compared to the previous expectation of a 150 to 200 basis point decline compared to the baseline period’s gross margin of 49.6 percent.
- This decline is primarily driven by expected higher promotional activities, channel mix, and additional negative impacts from anticipated changes in foreign currency.
- Operating income is expected to reach $300 to $325 million compared to the previous range of $375 to $400 million.
- There is a $0.02 negative impact from legal expenses related to ongoing litigation matters.
- Adjusted diluted earnings per share is expected to be $0.47 to $0.53, compared to the previous expectation of $0.63 to $0.68.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 18 quarterly earnings reports · overlaid with Q1 2023
-0.5%
Avg return
Earnings day
-2.7%
Avg return
5 days after
-2.0%
Avg return
30 days after
54%
22 / 41 earnings
Positive
+24.6%
Q4 2015
Best reaction
-27.8%
Q1 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | — | — | — | |
| Q4 2026 | -16.8% | -15.0% | -1.2% | |
| Q3 2026 | +19.3% | +9.8% | +4.2% | |
| Q2 2026 | -1.1% | +0.7% | -1.6% | |
| Q4 2025 | +1.7% | +7.8% | +9.2% | |
| Q3 2025 | -4.6% | -10.3% | -12.7% | |
| Q2 2025 | +8.7% | +6.8% | +12.3% | |
| Q1 2025 | +22.3% | +24.7% | +19.6% | |
| Q4 2024 | -0.5% | -0.6% | -2.0% | |
| Q3 2024 | +4.8% | +3.2% | +7.5% | |
| Q2 2024 | +1.0% | -1.8% | +19.0% | |
| Q1 2024 | +1.3% | +1.3% | -6.4% | |
| Q4 2023 | -10.1% | -10.6% | -11.6% | |
| Q3 2023 | -10.9% | -12.4% | -27.2% | |
| Q2 2023 | +16.0% | +12.5% | +42.1% | |
| Q1 2023 | +1.2% | +5.6% | -10.2% | |
| Q1 2022 | -27.8% | -30.9% | -24.2% | |
| Q4 2021 | -12.8% | -12.7% | -19.2% | |
| Q3 2021 | +18.2% | +12.1% | +4.9% | |
| Q2 2021 | +13.3% | +16.9% | +11.6% | |
| Q1 2021 | +6.3% | +1.8% | -4.1% | |
| Q4 2020 | +9.5% | +7.4% | +10.9% | |
| Q3 2020 | +6.1% | +6.1% | +22.2% | |
| Q2 2020 | -13.7% | -7.3% | -10.2% | |
| Q1 2020 | -14.1% | -22.7% | +5.4% | |
| Q4 2019 | -14.9% | -14.9% | -51.8% | |
| Q3 2019 | -13.7% | -16.0% | -10.0% | |
| Q2 2019 | -16.6% | -21.3% | -30.5% | |
| Q1 2019 | +2.8% | -0.9% | +2.8% | |
| Q4 2018 | +3.8% | -0.6% | +3.9% | |
| Q3 2018 | +18.0% | +27.4% | +29.4% | |
| Q2 2018 | -2.3% | -5.1% | -0.2% | |
| Q1 2018 | +6.6% | +2.5% | +23.3% | |
| Q4 2017 | +22.5% | +19.7% | +4.9% | |
| Q3 2017 | -23.4% | -28.2% | -19.1% | |
| Q2 2017 | -9.1% | -8.3% | -16.6% | |
| Q1 2017 | +7.0% | +3.3% | -0.4% | |
| Q4 2016 | -25.1% | -27.5% | -24.4% | |
| Q3 2016 | -16.1% | -21.2% | -27.3% | |
| Q2 2016 | -8.9% | -7.9% | -1.3% | |
| Q1 2016 | +6.9% | — | — | |
| Q4 2015 | +24.6% | — | — | |
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