NYSE$UA

Under Armour · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Under Armour's financial performance significantly declined due to the COVID-19 pandemic in the second quarter of 2020.

Under Armour reported a 41% decrease in revenue to $708 million due to the COVID-19 pandemic. Despite the revenue decline, gross margin increased by 280 basis points to 49.3%. The company experienced a net loss of $183 million, or $0.40 per share.

  • Revenue decreased 41 percent to $708 million, impacted by the COVID-19 pandemic.
  • Wholesale revenue decreased 58 percent to $299 million, and direct-to-consumer revenue decreased 13 percent to $368 million.
  • North America revenue decreased 45 percent to $450 million, while international revenue decreased 34 percent to $224 million.
  • Gross margin increased 280 basis points to 49.3 percent due to channel mix and higher direct-to-consumer sales.

Headline financials

Total Revenue

$708M

Previous: $1.19B-40.6%
EPS (adj)

-$0.31

Previous: -$0.03-933.3%
Gross Margin

49.3%

Previous: 46.5%+6.0%
Capital Expenditures

-$50.9M

Previous: -$77M+34.0%
Free Cash Flow

-$360M

Previous: $35.7M-1110.3%
Net Income

-$183M

Previous: -$17.3M-954.2%
Operating Income

-$170M

Previous: -$11.5M-1377.7%
Gross Profit

$349M

Previous: $554M-37.0%
Cash & Equivalents

$1.08B

Previous: $456M+136.9%
Total Assets

$5B

Previous: $4.68B+6.9%
Stock-Based Comp

$12.8M

Previous: $13.1M-2.7%

Revenue & EPS history

Under Armour · Revenue · Quarterly

$708M

Q2 2020-40.6%vs Q2 2019
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Under Armour · $673M total across 4 segments · Q2 2020

  • Apparel
    $426M-42.4%
  • Footwear
    $185M-34.9%
  • Accessories
    $56M-47.3%
  • Licensing
    $6.19M-75.5%

Forward guidance

Due to ongoing uncertainty related to COVID-19 and its potential effect on global markets, the company continues to anticipate material impacts on its business results for the remainder of 2020.

Tailwinds

  • Most locations where the brand can be purchased have reopened.
  • Traffic trends continue to be considerably lower than the prior year period, however, the overall rate of conversion is higher.
  • The company experienced significant eCommerce growth around the world during the quarter.

Headwinds

  • Traffic trends are expected to remain lower for the remainder of 2020.
  • Continued uncertainty related to consumer shopping dynamics.
  • Potential for a highly promotional environment.
  • Proactive decisions to reduce inventory purchases to be more aligned with anticipated demand related to ongoing COVID-19 impacts.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-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

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
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%
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q2 2011
Q3 2011
Q1 2010
Q1 2011
Q4 2010
Q4 2008
Q3 2009
Q3 2010
Q2 2009
Q4 2009
Q2 2010

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