NYSE$UA

Under Armour · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strong demand and executed quickly to meet consumer needs.

Under Armour reported an 8% increase in revenue to $1.5 billion, driven by strong demand and effective execution. The company raised its full-year outlook, expecting record revenue and earnings results in 2021.

  • Revenue increased by 8% to $1.5 billion, or 6% on a currency-neutral basis.
  • Wholesale revenue grew by 10% to $911 million, while direct-to-consumer revenue increased by 12% to $604 million.
  • North America revenue increased by 8% to $1.0 billion, and international revenue rose by 18% to $510 million.
  • Diluted earnings per share was $0.24. Adjusted diluted earnings per share was $0.31.

Headline financials

Total Revenue

$1.55B

Previous: $1.43B+7.9%
EPS (adj)

$0.31

Previous: $0.26+19.2%
Gross Margin

51.0%

No prior period
Capital Expenditures

-$57.7M

Previous: -$71.6M+19.5%
Free Cash Flow

$152M

Previous: -$321M+147.4%
Net Income

$113M

Previous: $38.9M+191.3%
Operating Income

$172M

Previous: $58.6M+193.8%
Gross Profit

$788M

Previous: $686M+14.8%
Cash & Equivalents

$1.25B

Previous: $866M+44.8%
Total Assets

$4.82B

Previous: $4.86B-0.8%
Stock-Based Comp

$11M

Previous: $9.51M+16.1%

Revenue & EPS history

Under Armour · Revenue · Quarterly

$1.55B

Q3 2021+7.9%vs Q3 2020
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Revenue by segment

Under Armour · $1.55B total across 4 segments · Q3 2021

  • Apparel
    $1.06B+14.2%
  • Footwear
    $330M+10.4%
  • Accessories
    $126M-12.9%
  • Licensing
    $31.1M+23.8%

Forward guidance

Under Armour updated its full-year 2021 outlook, expecting revenue to be up approximately 25 percent. Diluted earnings per share is expected to reach approximately $0.55 and adjusted diluted earnings per share is expected to reach approximately $0.74.

Tailwinds

  • Revenue is expected to be up approximately 25 percent compared to the previous expectation of a low-twenties percentage increase.
  • North America is expected to have a high-twenties percentage growth rate.
  • The international business is expected to have a mid-thirties percentage growth rate.
  • Gross margin is expected to increase approximately 130 basis points compared to the previous expectation of an approximate 50 to 70 basis point improvement versus the prior year adjusted gross margin of 48.6 percent.
  • Operating income is expected to reach approximately $425 million compared to the previous range of $215 million to $225 million.

Headwinds

  • Expected higher freight expenses.
  • Continued uncertainty related to COVID-19.
  • Potential material impacts on Under Armour’s full-year business results in 2021, as well as future periods.
  • Impacts on global supply chains and logistics.
  • Sale of the MyFitnessPal platform.

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 Q3 2021

Historical avgQ3 2021

-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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