NYSE$UA
Under Armour · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Under Armour's Q3 2020 results reflected better-than-expected performance due to higher demand and strong execution.
Under Armour reported flat revenue at $1.4 billion compared to the prior year. North America revenue decreased by 5%, while international revenue increased by 18%. Diluted earnings per share was $0.09, and adjusted diluted earnings per share was $0.26.
- Revenue was flat at $1.4 billion compared to the prior year.
- North America revenue decreased 5% to $963 million.
- International revenue increased 18% to $433 million.
- Diluted earnings per share was $0.09 and adjusted diluted earnings per share was $0.26.
Headline financials
Revenue & EPS history
Under Armour · Revenue · Quarterly
$1.43B
Revenue by segment
Under Armour · $1.4B total across 4 segments · Q3 2020
- Apparel$927M-5.9%66.4%
- Footwear$299M+19.2%21.4%
- Accessories$145M+22.8%10.4%
- Licensing$25.1M-15.1%1.8%
Forward guidance
Due to ongoing uncertainty related to COVID-19, the company expects material impacts on its business results for the remainder of 2020 and into 2021.
Tailwinds
- Revenue is expected to be down at a high-teen percentage rate compared to 2019 results.
- For the fourth quarter, the company now expects revenue to be down at a low-teen percentage rate, versus the previous down 20 to 25 percent expectation.
- Gross margin is expected to be up 20 to 40 basis points versus 2019 due to channel mix benefits and supply chain efficiencies.
- Capital expenditures are planned at approximately $80 million compared to $144 million in 2019.
- The vast majority of locations where Under Armour is sold are now open.
Headwinds
- Revenue is expected to be down at a high-teen percentage rate compared to 2019 results, reflecting a low twenties percentage rate decline in North America and a high-single-digit percentage rate decline within the international business.
- Expected year-end timing impacts from COVID-19, related to customer order flow and changes in supply chain timing resulting in more planned spring product deliveries in early 2021 versus late 2020.
- An anticipated substantial decline in licensing revenue due to lower contractual royalty minimums and contract settlements realized in the prior year.
- Lower planned excess inventory sales to the off-price channel.
- For the fourth quarter, the company anticipates meaningful gross margin pressure primarily related to expectations around a more promotional environment relative to the prior year.
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 Q3 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
| 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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