NYSE$UA

Under Armour · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Under Armour's second quarter results exceeded expectations, particularly profitability, while revenue was flat year-over-year.

Under Armour reported flat revenue year-over-year at $1.6 billion for the second quarter of fiscal year 2024, with a 260 basis points increase in gross margin to 48.0%. Operating income was $146 million, and net income reached $110 million, resulting in diluted earnings per share of $0.24. The company is maintaining its fiscal 2024 operating income and EPS outlook despite lowering revenue expectations.

  • Revenue was flat compared to the prior year at $1.6 billion (down 1% currency neutral).
  • Gross margin increased 260 basis points to 48.0%, driven by supply chain benefits.
  • Operating income was $146 million.
  • Net income was $110 million, with diluted earnings per share at $0.24.

Headline financials

Total Revenue

$1.57B

Previous: $1.57B-0.5%
EPS (adj)

$0.24

Previous: $0.20+20.0%
Capital Expenditures

-$84.1M

Previous: -$93.9M+10.4%
Free Cash Flow

-$19.9M

Previous: -$96.4M+79.3%
Net Income

$110M

Previous: $86.9M+26.1%
Operating Income

$146M

Previous: $119M+22.1%
Gross Profit

$752M

Previous: $714M+5.3%
Cash & Equivalents

$656M

Previous: $854M-23.2%
Total Assets

$4.75B

Previous: $4.77B-0.5%
Stock-Based Comp

$11.6M

No prior period

Revenue & EPS history

Under Armour · Revenue · Quarterly

$1.57B

Q2 2024-0.5%vs Q2 2023
Beat estimate in 11 of 11 quarters(100%)
ActualEstimate

Revenue by segment

Under Armour · $1.57B total across 3 segments · Q2 2024

  • Apparel
    $1.1B+5.9%
  • Footwear
    $351M-6.6%
  • Accessories
    $114M+2.6%

Forward guidance

Under Armour's fiscal year 2024 outlook includes revenue expected to be down 2 to 4 percent, gross margin expected to be up 100 to 125 basis points, and selling, general & administrative expenses expected to be flat to down slightly. Operating income and diluted earnings per share remain unchanged.

Tailwinds

  • Gross margin is expected to be up 100 to 125 basis points.
  • Selling, general & administrative expenses are expected to be flat to down slightly.
  • Operating income remains unchanged from the previous expectation of $310 million to $330 million.
  • Effective tax rate remains unchanged from the previous expectation of a low twenties percentage range.
  • Diluted earnings per share remain unchanged from the previous expectation of between $0.47 and $0.51.

Headwinds

  • Revenue is expected to be down 2 to 4 percent versus the previous expectation of flat to up slightly.
  • Challenges in North America during the back half of the year.
  • Lowered revenue expectations.
  • Capital expenditures are now expected to reach between $230 million and $250 million.
  • Taking steps to invest in the talent, systems, and processes to drive the top line growth over the long term.

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 2024

Historical avgQ2 2024

-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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