NYSE$UA

Under Armour · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Under Armour's Q3 2023 results were solid, achieving full-year operational and financial goals.

Under Armour reported a 3% increase in revenue to $1.6 billion, with wholesale revenue up 7% and direct-to-consumer revenue down 1%. North America revenue decreased by 2%, while international revenue increased by 14%. Diluted earnings per share was $0.27, and adjusted diluted earnings per share was $0.16.

  • Revenue increased by 3 percent to $1.6 billion, or 7 percent on a currency-neutral basis.
  • Wholesale revenue grew by 7 percent to $820 million.
  • Direct-to-consumer revenue declined by 1 percent to $715 million.
  • International revenue increased by 14 percent to $527 million.

Headline financials

Total Revenue

$1.58B

No prior period
EPS (adj)

$0.16

No prior period
Gross Margin

44.2%

No prior period
Capital Expenditures

-$148M

No prior period
Free Cash Flow

-$73.2M

No prior period
Net Income

$122M

No prior period
Operating Income

$94.7M

No prior period
Gross Profit

$698M

No prior period
Cash & Equivalents

$850M

No prior period
Total Assets

$4.83B

No prior period

Revenue & EPS history

Under Armour · Revenue · Quarterly

$1.58B

Q3 2023
Beat estimate in 11 of 11 quarters(100%)
ActualEstimate

Revenue by segment

Under Armour · $1.46B total across 3 segments · Q3 2023

  • Apparel
    $1B
  • Footwear
    $354M
  • Accessories
    $105M

Forward guidance

Under Armour updated its fiscal year 2023 outlook, maintaining revenue growth expectations and adjusting gross margin and SG&A expense forecasts.

Tailwinds

  • Revenue growth is unchanged from the previous expectation of a low single-digit percentage rate increase on a reported basis, up at a mid-single-digit percentage rate on a currency-neutral basis.
  • Selling, general & administrative expenses are now expected to be down at a low single-digit percentage rate against the prior year versus the previous expectation of “down slightly.”
  • Operating income remains unchanged from the previous outlook and is expected to reach $270 to $290 million. Excluding the company's litigation reserve, adjusted operating income is expected to reach $290 to $310 million.
  • Adjusted diluted earnings per share is now expected to be $0.52 to $0.56 versus the previously expected range of $0.44 to $0.48.
  • Capital expenditures are now expected to be approximately $200 million, down from the previous expectation of approximately $225 million.

Headwinds

  • Gross margin is expected to decline at the higher end of the previously provided 375 to 425 basis point range.

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 2023

Historical avgQ3 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

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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