Under Armour reports 5% revenue drop in Q4

Under Armour, Inc. (NYSE: UA, UAA) has reported its unaudited financial results for the fourth quarter and full-year fiscal 2024, which ended on March 31, 2024. The company's revenue for the fourth quarter was down 5 percent to $1.3 billion, with North America revenue decreasing by 10 percent and international revenue increasing by 7 percent. The company's gross margin increased by 170 basis points to 45.0 percent, driven primarily by supply chain benefits related to lower product and freight costs.

Selling, general & administrative expenses were up 5 percent to $603 million, with the operating loss at $4 million. The net income for the quarter was $7 million, with diluted earnings per share at $0.02. Inventory was down 19 percent to $958 million, and the company closed the quarter with a cash and cash equivalents position of $859 million.

For the full year fiscal 2024, Under Armour reported a 3 percent decrease in revenue to $5.7 billion. North America revenue decreased by 8 percent, while international revenue increased by 8 percent. Gross margin increased by 130 basis points to 46.1 percent, and selling, general & administrative expenses were up 1 percent to $2.4 billion. The company reported an operating income of $230 million and a net income of $232 million for the full year.

Looking ahead to fiscal 2025, Under Armour expects revenue to be down at a low-double-digit percentage rate, with an expected decline in both North America and international revenue. The company anticipates its gross margin to be up 75 to 100 basis points compared to the prior year, and selling, general and administrative expenses to be down 2 to 4 percent. Operating income is expected to be $50 to $70 million, and diluted earnings per share is expected to be between $0.02 and $0.05.

Additionally, the company also announced a new $500 million share repurchase program. Under Armour's board of directors has authorized the repurchase of up to $500 million of the company's outstanding class C common stock over the next three years through various methods, including accelerated share repurchase, open market, or privately negotiated transactions.

In conjunction with its fiscal 2025 outlook, the company has approved a restructuring plan that is expected to incur total estimated pre-tax restructuring and related charges of approximately $70 to $90 million.

For more detailed financial information and a reconciliation of non-GAAP amounts to the most directly comparable financial measure calculated according to GAAP, investors are encouraged to refer to the supplemental financial information furnished with the release. Today the company's shares have moved 1.4% to a price of $6.89. Check out the company's full 8-K submission here.

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