BALTIMORE, Feb. 8, 2023
/PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced
unaudited financial results for its third quarter of fiscal 2023
ended December 31, 2022. The company
reports its financial performance following accounting principles
generally accepted in the United States
of America ("GAAP"). This press release refers to "currency
neutral" and "adjusted" amounts, which are non-GAAP financial
measures described below under the "Non-GAAP Financial Information"
paragraph.
"We are pleased to have delivered solid third-quarter results
and remain on track to achieve our full-year operational and
financial goals," said Under Armour Interim President and CEO
Colin Browne. "Moving forward, I'm
excited to partner with Stephanie
Linnartz to advance our strategic consumer and product
refinements further – leveraging Under Armour's strong brand
to drive sustainable, profitable growth."
Third Quarter 2023 Review
- Revenue was up 3 percent to $1.6 billion (up 7 percent currency neutral)
compared to the prior year.
-
- Wholesale revenue increased 7 percent to $820 million, and direct-to-consumer revenue
decreased 1 percent to $715 million
due to a 6 percent decline in owned and operated store revenue
partially offset by a 7 percent increase in eCommerce revenue,
which represented 45 percent of the total direct-to-consumer
business during the quarter.
- North America revenue was down
2 percent compared to the prior year at $1
billion, and international revenue increased 14 percent to
$527 million (up 24 percent currency
neutral). Within the international business, revenue increased 32
percent in EMEA (up 46 percent currency neutral), decreased 9
percent in Asia-Pacific (up 1
percent currency neutral), and increased 45 percent in Latin America (up 41 percent currency
neutral).
- Apparel revenue decreased 2 percent to $1 billion. Footwear revenue increased 25 percent
to $354 million. Accessories revenue
declined 2 percent to $105
million.
- Gross margin declined 650 basis points to 44.2
percent compared to the prior year, driven primarily by higher
promotions, mix impacts related to higher distributor and footwear
revenue, and the adverse effects of changes in foreign
currency.
- Selling, general & administrative
expenses decreased 11 percent to $604
million.
- Operating income was $95
million.
- Net Income was $122
million. Excluding a $45
million earn-out benefit in connection with the sale of the
MyFitnessPal platform and a $2
million benefit from a tax valuation allowance release
related to prior-period restructuring, adjusted net income
was $76 million.
- Diluted earnings per share was $0.27. Adjusted diluted earnings per share
was $0.16.
- Inventory was up 50 percent to $1.2 billion.
- Cash and Cash Equivalents were $850 million at the end of the quarter, and no
borrowings were outstanding under the company's $1.1 billion revolving credit facility.
Share Buyback Update
Under Armour entered accelerated share repurchase (ASR)
transactions during the third quarter to buy back $75 million of its Class C common stock. As of
the date of this release, 8.8 million shares were retired under
these ASR transactions. In total, 35 million shares for
$425 million have now been
repurchased under the company's two-year, $500 million program, which the Board of
Directors approved in February
2022.
Updated Fiscal 2023 Outlook
As a reminder, Under Armour began its new fiscal year 2023 on
April 1, 2022. Accordingly, the
comparable baseline period is April 1,
2021, through March 31, 2022.
Key points related to Under Armour's fiscal year 2023 outlook
include:
- 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.
- Gross margin is expected to decline at the higher end of
the previously provided 375 to 425 basis point range.
- 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.
- Diluted earnings per share is expected to be
$0.71 to $0.75. This includes a $0.27 benefit related to a tax valuation
allowance release expected to be realized during the fiscal year.
Of this $0.27 benefit, $0.15 is related to prior restructuring.
Additionally, there is an $0.08
after-tax benefit from our second-year earn-out in connection with
the sale of the MyFitnessPal platform and a $0.04 negative impact from our litigation
reserve. Excluding these net positive impacts of $0.19 and including more favorable foreign
currency developments and a slightly lower tax rate, 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.
Conference Call and Webcast
Under Armour will hold its third quarter fiscal 2023
conference call today at approximately 8:30
a.m. Eastern Time. The call will be webcast live at
https://about.underarmour.com/investor-relations/financials and
will be archived and available for replay about three hours after
the live event.
Non-GAAP Financial Information
This press release refers to "currency neutral" and "adjusted"
results, as well as "adjusted" forward-looking estimates of the
company's results for its 2023 fiscal year ending March 31, 2023. Management believes this
information is helpful to investors to compare the company's
results of operations period-over-period because it enhances
visibility into its actual underlying results, excluding these
impacts. Currency-neutral financial information is calculated to
exclude changes in foreign currency exchange rates. References to
adjusted financial measures exclude the effect of the company's
litigation reserve, the company's 2020 restructuring plan, and
related impairment charges, including goodwill and related tax
effects. Where applicable, adjusted net income (loss) and adjusted
diluted income (loss) per share exclude the non-cash amortization
of debt discount on the company's convertible senior notes, any
gain or loss on extinguishing the company's convertible senior
notes, and related tax effects, and any gain or loss from
divestitures (including associated earn-outs and expenses) and
related tax effects. Management believes these adjustments
are not core to the company's operations. The reconciliation
of non-GAAP amounts to the most directly comparable financial
measure calculated according to GAAP is presented in supplemental
financial information furnished with this release. All per-share
amounts are reported on a diluted basis. In addition, in connection
with its change in fiscal year-end from December 31 to March 31, Under Armour is
presenting select non-GAAP financial measures for the twelve months
beginning on April 1, 2021, and
ending March 31, 2022, to provide
comparable reference periods against the company's new fiscal 2023
year, which began April 1, 2022, and
ends on March 31, 2023. These
supplemental non-GAAP financial measures should not be considered
in isolation. They should be contemplated in addition to, and not
as an alternative to, the company's reported results prepared per
GAAP. Additionally, the company's non-GAAP financial information
may not be comparable to similarly titled measures reported by
other companies.
About Under Armour, Inc.
Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor,
marketer, and distributor of branded athletic performance apparel,
footwear, and accessories. Designed to empower human performance,
Under Armour's innovative products and experiences are engineered
to make athletes better. For further information, please visit
http://about.underarmour.com.
Forward-Looking Statements
Some of the statements contained in this press release
constitute forward-looking statements. Forward-looking statements
relate to expectations, beliefs, projections, plans and strategies,
anticipated events or trends, and similar expressions concerning
matters that are not historical facts, such as statements regarding
our share repurchase program, our future financial condition or
results of operations, our prospects and strategies for future
growth, the impact of the COVID-19 pandemic on our business,
expectations regarding promotional activities, freight, product
cost pressures and foreign currency impacts, the impact of global
economic conditions and inflation on our results of operations, the
development and introduction of new products, the implementation of
our marketing and branding strategies, and the future benefits and
opportunities from significant investments. In many cases, you can
identify forward-looking statements by terms such as "may," "will,"
"should," "could," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "outlook," "potential" or the negative of
these terms or other comparable terminology. The forward-looking
statements in this press release reflect our current views about
future events. They are subject to risks, uncertainties,
assumptions, and circumstances that may cause events or our actual
activities or results to differ significantly from those expressed
in any forward-looking statement. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future events, results, actions,
activity levels, performance, or achievements. Readers are
cautioned not to place undue reliance on these forward-looking
statements. A number of important factors could cause actual
results to differ materially from those indicated by these
forward-looking statements, including, but not limited to: changes
in general economic or market conditions, including inflation, that
could affect overall consumer spending or our industry; the impact
of the COVID-19 pandemic on our industry and our business,
financial condition and results of operations, including recent
impacts on the global supply chain; failure of our suppliers,
manufacturers or logistics providers to produce or deliver our
products in a timely or cost-effective manner; labor or other
disruptions at ports or our suppliers or manufacturers; increased
competition causing us to lose market share or reduce the prices of
our products or to increase our marketing efforts
significantly; fluctuations in the costs of raw materials and
commodities we use in our products and costs related to our supply
chain (including labor); changes to the financial health of our
customers; our ability to successfully execute our long-term
strategies; our ability to effectively drive operational
efficiency in our business and realize expected benefits from
restructuring plans; our ability to effectively develop and
launch new, innovative and updated products; our ability to
accurately forecast consumer shopping and engagement preferences
and consumer demand for our products and manage our inventory in
response to changing demands; loss of key customers, suppliers
or manufacturers; our ability to further expand our business
globally and to drive brand awareness and consumer acceptance of
our products in other countries; our ability to manage the
increasingly complex operations of our global business; the
impact of global events beyond our control, including military
conflict; our ability to successfully manage or realize expected
results from significant transactions and investments; our
ability to effectively market and maintain a positive brand
image; our ability to effectively meet the expectations of our
stakeholders with respect to environmental, social and governance
practices; the availability, integration and effective operation of
information systems and other technology, as well as any potential
interruption of such systems or technology; any disruptions,
delays or deficiencies in the design, implementation or application
of our global operating and financial reporting information
technology system; our ability to attract key talent and
retain the services of our senior management and other key
employees; our ability to access capital and financing
required to manage our business on terms acceptable to us; our
ability to accurately anticipate and respond to seasonal or
quarterly fluctuations in our operating results; risks related
to foreign currency exchange rate fluctuations; our ability to
comply with existing trade and other regulations, and the potential
impact of new trade, tariff and tax regulations on our
profitability; risks related to data security or privacy
breaches; and our potential exposure to litigation and other
proceedings. The forward-looking statements here reflect our
views and assumptions only as of the date of this press release. We
undertake no obligation to update any forward-looking statement to
reflect events or circumstances after the statement's date or to
reflect unanticipated events.
Under Armour, Inc.
For the Three and Nine Months Ended December 31, 2022, and
2021
(Unaudited; in thousands, except per share
amounts)
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATION
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
in '000s
|
2022
|
|
% of Net
Revenues
|
|
2021
|
|
% of Net
Revenues
|
|
2022
|
|
% of Net
Revenues
|
|
2021
|
|
% of Net
Revenues
|
Net revenues
|
$
1,581,781
|
|
100.0 %
|
|
$
1,529,205
|
|
100.0 %
|
|
$
4,504,723
|
|
100.0 %
|
|
$
4,426,271
|
|
100.0 %
|
Cost of goods
sold
|
883,376
|
|
55.8 %
|
|
753,272
|
|
49.3 %
|
|
2,462,287
|
|
54.7 %
|
|
2,193,413
|
|
49.6 %
|
Gross
profit
|
698,405
|
|
44.2 %
|
|
775,933
|
|
50.7 %
|
|
2,042,436
|
|
45.3 %
|
|
2,232,858
|
|
50.4 %
|
Selling, general and
administrative expenses
|
603,746
|
|
38.2 %
|
|
675,666
|
|
44.2 %
|
|
1,793,884
|
|
39.8 %
|
|
1,820,053
|
|
41.1 %
|
Restructuring and
impairment charges
|
—
|
|
— %
|
|
14,136
|
|
0.9 %
|
|
—
|
|
— %
|
|
33,405
|
|
0.8 %
|
Income (loss) from
operations
|
94,659
|
|
6.0 %
|
|
86,131
|
|
5.6 %
|
|
248,552
|
|
5.5 %
|
|
379,400
|
|
8.6 %
|
Interest income
(expense), net
|
(1,615)
|
|
(0.1) %
|
|
(7,595)
|
|
(0.5) %
|
|
(11,175)
|
|
(0.2) %
|
|
(30,163)
|
|
(0.7) %
|
Other income (expense),
net
|
47,312
|
|
3.0 %
|
|
24,037
|
|
1.6 %
|
|
27,300
|
|
0.6 %
|
|
(43,933)
|
|
(1.0) %
|
Income (loss) before
income taxes
|
140,356
|
|
8.9 %
|
|
102,573
|
|
6.7 %
|
|
264,677
|
|
5.9 %
|
|
305,304
|
|
6.9 %
|
Income tax expense
(benefit)
|
18,811
|
|
1.2 %
|
|
(6,798)
|
|
(0.4) %
|
|
46,719
|
|
1.0 %
|
|
22,191
|
|
0.5 %
|
Income (loss) from
equity method investments
|
72
|
|
— %
|
|
286
|
|
— %
|
|
(1,734)
|
|
— %
|
|
(805)
|
|
— %
|
Net income
(loss)
|
$ 121,617
|
|
7.7 %
|
|
$ 109,657
|
|
7.2 %
|
|
$ 216,224
|
|
4.8 %
|
|
$ 282,308
|
|
6.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per share of Class A, B
and C common stock
|
$
0.27
|
|
|
|
$
0.23
|
|
|
|
$
0.48
|
|
|
|
$
0.60
|
|
|
Diluted net income
(loss) per share of Class A, B
and C common stock
|
$
0.27
|
|
|
|
$
0.23
|
|
|
|
$
0.47
|
|
|
|
$
0.60
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
Basic
|
448,833
|
|
|
|
476,178
|
|
|
|
453,840
|
|
|
|
468,627
|
|
|
Diluted
|
458,990
|
|
|
|
479,728
|
|
|
|
463,750
|
|
|
|
471,743
|
|
|
Under Armour, Inc.
For the Three and Nine Months Ended December 31, 2022, and
2021
(Unaudited; in thousands)
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
in '000s
|
2022
|
|
2021
|
|
% Change
|
|
2022
|
|
2021
|
|
% Change
|
Apparel
|
$
1,075,714
|
|
$
1,098,784
|
|
(2.1) %
|
|
$
2,982,410
|
|
$
3,031,208
|
|
(1.6) %
|
Footwear
|
354,389
|
|
282,721
|
|
25.3 %
|
|
1,077,525
|
|
955,080
|
|
12.8 %
|
Accessories
|
104,875
|
|
106,650
|
|
(1.7) %
|
|
312,823
|
|
344,498
|
|
(9.2) %
|
Net
Sales
|
1,534,978
|
|
1,488,155
|
|
3.1 %
|
|
4,372,758
|
|
4,330,786
|
|
1.0 %
|
Licensing
revenues
|
29,734
|
|
36,606
|
|
(18.8) %
|
|
90,992
|
|
90,966
|
|
— %
|
Corporate Other
(1)
|
17,069
|
|
4,444
|
|
NM
|
|
40,973
|
|
4,519
|
|
NM
|
Total net
revenues
|
$
1,581,781
|
|
$
1,529,205
|
|
3.4 %
|
|
$
4,504,723
|
|
$
4,426,271
|
|
1.8 %
|
|
|
NET REVENUES BY
DISTRIBUTION CHANNEL
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
in '000s
|
2022
|
|
2021
|
|
% Change
|
|
2022
|
|
2021
|
|
% Change
|
Wholesale
|
$
819,781
|
|
$
767,896
|
|
6.8 %
|
|
$
2,559,621
|
|
$
2,446,162
|
|
4.6 %
|
Direct-to-consumer
|
715,197
|
|
720,259
|
|
(0.7) %
|
|
1,813,137
|
|
1,884,624
|
|
(3.8) %
|
Net
Sales
|
1,534,978
|
|
1,488,155
|
|
3.1 %
|
|
4,372,758
|
|
4,330,786
|
|
1.0 %
|
License
revenues
|
29,734
|
|
36,606
|
|
(18.8) %
|
|
90,992
|
|
90,966
|
|
— %
|
Corporate Other
(1)
|
17,069
|
|
4,444
|
|
NM
|
|
40,973
|
|
4,519
|
|
NM
|
Total net
revenues
|
$
1,581,781
|
|
$
1,529,205
|
|
3.4 %
|
|
$
4,504,723
|
|
$
4,426,271
|
|
1.8 %
|
|
|
NET REVENUES BY
SEGMENT
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
in '000s
|
2022
|
|
2021
|
|
% Change
|
|
2022
|
|
2021
|
|
% Change
|
North
America
|
$
1,037,637
|
|
$
1,063,290
|
|
(2.4) %
|
|
$
2,958,816
|
|
$
3,004,645
|
|
(1.5) %
|
EMEA
|
265,250
|
|
200,203
|
|
32.5 %
|
|
733,110
|
|
648,628
|
|
13.0 %
|
Asia-Pacific
|
198,021
|
|
217,223
|
|
(8.8) %
|
|
600,415
|
|
621,542
|
|
(3.4) %
|
Latin
America
|
63,804
|
|
44,045
|
|
44.9 %
|
|
171,409
|
|
146,937
|
|
16.7 %
|
Corporate Other
(1)
|
17,069
|
|
4,444
|
|
NM
|
|
40,973
|
|
4,519
|
|
NM
|
Total net
revenues
|
$
1,581,781
|
|
$
1,529,205
|
|
3.4 %
|
|
$
4,504,723
|
|
$
4,426,271
|
|
1.8 %
|
Under Armour, Inc.
For the Three and Nine Months Ended December 31, 2022, and
2021
(Unaudited; in thousands)
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
in '000s
|
2022
|
% of Net
Revenues (2)
|
|
2021
|
% of Net
Revenues (2)
|
|
2022
|
% of Net
Revenues (2)
|
|
2021
|
% of Net
Revenues (2)
|
North
America
|
$
198,919
|
19.2 %
|
|
$
243,395
|
22.9 %
|
|
$
598,049
|
20.2 %
|
|
$
761,531
|
25.3 %
|
EMEA
|
30,947
|
11.7 %
|
|
24,252
|
12.1 %
|
|
85,023
|
11.6 %
|
|
105,916
|
16.3 %
|
Asia-Pacific
|
10,811
|
5.5 %
|
|
21,823
|
10.0 %
|
|
76,890
|
12.8 %
|
|
86,398
|
13.9 %
|
Latin
America
|
5,805
|
9.1 %
|
|
4,099
|
9.3 %
|
|
19,216
|
11.2 %
|
|
20,931
|
14.2 %
|
Corporate Other
(1)
|
(151,823)
|
NM
|
|
(207,438)
|
NM
|
|
(530,626)
|
NM
|
|
(595,376)
|
NM
|
Income (loss) from
operations
|
$ 94,659
|
6.0 %
|
|
$ 86,131
|
5.6 %
|
|
$
248,552
|
5.5 %
|
|
$
379,400
|
8.6 %
|
|
(1) Corporate Other
primarily includes net revenues from foreign currency hedge gains
and losses generated by entities within the Company's operating
segments but managed through the Company's central foreign exchange
risk management program, as well as subscription revenues from the
Company's MapMyRun and MapMyRide platforms (collectively "MMR") and
revenue from other digital business opportunities. Corporate Other
also includes expenses related to the Company's central supporting
functions.
|
|
(2)
The percentage of operating income (loss) is calculated based on
total segment net revenues. The operating income (loss) percentage
for Corporate Other is not presented as a meaningful metric
(NM).
|
Under Armour, Inc.
As of December 31, 2022, and March 31, 2022
(Unaudited; in thousands)
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
in '000s
|
|
December 31,
2022
|
|
March 31,
2022
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
849,546
|
|
$
1,009,139
|
Accounts receivable,
net
|
|
700,544
|
|
702,197
|
Inventories
|
|
1,217,780
|
|
824,455
|
Prepaid expenses and
other current assets, net
|
|
348,734
|
|
297,034
|
Total current
assets
|
|
3,116,604
|
|
2,832,825
|
Property and equipment,
net
|
|
655,612
|
|
601,365
|
Operating lease
right-of-use assets
|
|
482,947
|
|
420,397
|
Goodwill
|
|
479,975
|
|
491,508
|
Intangible assets,
net
|
|
9,198
|
|
10,580
|
Deferred income
taxes
|
|
20,237
|
|
20,141
|
Other long-term
assets
|
|
62,982
|
|
76,016
|
Total
assets
|
|
$
4,827,555
|
|
$
4,452,832
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Accounts
payable
|
|
738,740
|
|
560,331
|
Accrued
expenses
|
|
388,159
|
|
317,963
|
Customer refund
liabilities
|
|
172,190
|
|
159,628
|
Operating lease
liabilities
|
|
137,310
|
|
134,833
|
Other current
liabilities
|
|
65,730
|
|
125,840
|
Total current
liabilities
|
|
1,502,129
|
|
1,298,595
|
Long-term debt, net of
current maturities
|
|
673,930
|
|
672,286
|
Operating lease
liabilities, non-current
|
|
707,905
|
|
668,983
|
Other long-term
liabilities
|
|
111,589
|
|
84,014
|
Total
liabilities
|
|
2,995,553
|
|
2,723,878
|
Total stockholders'
equity
|
|
1,832,002
|
|
1,728,954
|
Total liabilities
and stockholders' equity
|
|
$
4,827,555
|
|
$
4,452,832
|
Under Armour, Inc.
For the Nine Months Ended December 31, 2022 and 2021
(Unaudited; in thousands)
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Nine Months Ended
December 31,
|
in '000s
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
216,224
|
|
$
282,308
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities
|
|
|
|
Depreciation and
amortization
|
102,656
|
|
105,632
|
Unrealized foreign
currency exchange rate (gain) loss
|
(19,424)
|
|
4,175
|
Loss on extinguishment
of senior convertible notes
|
—
|
|
58,526
|
Loss on disposal of
property and equipment
|
1,411
|
|
3,893
|
Non-cash restructuring
and impairment charges
|
—
|
|
21,337
|
Amortization of bond
premium and debt issuance costs
|
1,644
|
|
11,618
|
Stock-based
compensation
|
29,362
|
|
33,422
|
Deferred income
taxes
|
(132)
|
|
(2,633)
|
Changes in reserves
and allowances
|
7,316
|
|
(16,504)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
1,026
|
|
139,340
|
Inventories
|
(401,551)
|
|
44,041
|
Prepaid expenses and
other assets
|
(68,931)
|
|
(12,071)
|
Other non-current
assets
|
(46,272)
|
|
60,315
|
Accounts
payable
|
168,681
|
|
106,119
|
Accrued expenses and
other liabilities
|
50,892
|
|
7,047
|
Customer refund
liabilities
|
12,440
|
|
(27,912)
|
Income taxes payable
and receivable
|
19,057
|
|
(3,236)
|
Net cash provided by
(used in) operating activities
|
74,399
|
|
815,417
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(147,620)
|
|
(61,294)
|
Sale of property and
equipment
|
—
|
|
852
|
Earn-out from the sale
of the MyFitnessPal platform
|
35,000
|
|
—
|
Net cash used in
investing activities
|
(112,620)
|
|
(60,442)
|
Cash flows from
financing activities
|
|
|
|
Payments on long-term
debt and revolving credit facility
|
—
|
|
(506,280)
|
Proceeds from capped
call
|
—
|
|
91,722
|
Common shares
repurchased
|
(125,000)
|
|
—
|
Employee taxes paid for
shares withheld for income taxes
|
(868)
|
|
(1,682)
|
Proceeds from exercise
of stock options and other stock issuances
|
2,809
|
|
2,830
|
Payments of debt
financing costs
|
—
|
|
(1,884)
|
Net cash provided by
(used in) financing activities
|
(123,059)
|
|
(415,294)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
3,205
|
|
(16,491)
|
Net increase in
(decrease in) cash, cash equivalents and restricted cash
|
(158,075)
|
|
323,190
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
1,022,126
|
|
1,359,680
|
End of
period
|
$
864,051
|
|
$
1,682,870
|
Under Armour, Inc.
For the Three and Nine Months Ended December 31, 2022
(Unaudited)
|
|
The table below
presents the reconciliation of net revenue growth (decline)
calculated according to GAAP to
currency-neutral net revenue, a non-GAAP measure. See "Non-GAAP
Financial Information" above for
further information regarding the Company's use of non-GAAP
financial measures.
|
|
CURRENCY-NEUTRAL NET
REVENUE GROWTH (DECLINE) RECONCILIATION
|
|
|
Three months ended
December 31, 2022
|
|
Nine months ended
December 31, 2022
|
Total Net
Revenue
|
|
|
|
Net revenue growth -
GAAP
|
3.4 %
|
|
1.8 %
|
Foreign exchange
impact
|
3.5 %
|
|
2.8 %
|
Currency neutral net
revenue growth - Non-GAAP
|
6.9 %
|
|
4.6 %
|
|
|
|
|
North
America
|
|
|
|
Net revenue growth -
GAAP
|
(2.4) %
|
|
(1.5) %
|
Foreign exchange
impact
|
0.6 %
|
|
0.4 %
|
Currency neutral net
revenue growth - Non-GAAP
|
(1.8) %
|
|
(1.1) %
|
|
|
|
|
EMEA
|
|
|
|
Net revenue growth -
GAAP
|
32.5 %
|
|
13.0 %
|
Foreign exchange
impact
|
13.7 %
|
|
10.8 %
|
Currency neutral net
revenue growth - Non-GAAP
|
46.2 %
|
|
23.8 %
|
|
|
|
|
Asia-Pacific
|
|
|
|
Net revenue growth -
GAAP
|
(8.8) %
|
|
(3.4) %
|
Foreign exchange
impact
|
9.7 %
|
|
7.0 %
|
Currency neutral net
revenue growth - Non-GAAP
|
0.9 %
|
|
3.6 %
|
|
|
|
|
Latin
America
|
|
|
|
Net revenue growth -
GAAP
|
44.9 %
|
|
16.7 %
|
Foreign exchange
impact
|
(3.5) %
|
|
(1.0) %
|
Currency neutral net
revenue growth - Non-GAAP
|
41.4 %
|
|
15.7 %
|
|
|
|
|
Total
International
|
|
|
|
Net revenue growth -
GAAP
|
14.2 %
|
|
6.2 %
|
Foreign exchange
impact
|
10.2 %
|
|
7.9 %
|
Currency neutral net
revenue growth - Non-GAAP
|
24.4 %
|
|
14.1 %
|
Under Armour, Inc.
For the Three and Nine Months Ended December 31, 2022
(Unaudited; in thousands, except per share
amounts)
|
|
The tables below
present the reconciliation of the Company's condensed consolidated
statement of
operations presented in accordance with GAAP to certain adjusted
non-GAAP financial measures
discussed in this press release. See "Non-GAAP Financial
Information" above for further information
regarding the Company's use of non-GAAP financial
measures.
|
|
ADJUSTED OPERATING
INCOME (LOSS) RECONCILIATION
|
|
in '000s
|
Three months ended
December 31, 2022
|
|
Nine months ended
December 31, 2022
|
GAAP income from
operations
|
94,659
|
|
248,552
|
Add: Impact of
litigation reserve
|
—
|
|
20,000
|
Adjusted income from
operations
|
$
94,659
|
|
$
268,552
|
|
|
ADJUSTED NET INCOME
(LOSS) RECONCILIATION
|
|
in '000s
|
Three months ended
December 31, 2022
|
|
Nine months ended
December 31, 2022
|
GAAP net
income
|
121,617
|
|
216,224
|
Add: Impact of
litigation reserve
|
—
|
|
20,000
|
Add: Impact of earn-out
recorded in connection with the sale of the
MyFitnessPal platform
|
(45,000)
|
|
(45,000)
|
Add: Impact of
commission expense in connection with the sale of the
MyFitnessPal platform
|
630
|
|
1,120
|
Add: Impact of
provision for income taxes
|
(1,684)
|
|
(9,808)
|
Adjusted net
income
|
$
75,563
|
|
$
182,536
|
|
|
ADJUSTED DILUTED
EARNINGS (LOSS) PER SHARE RECONCILIATION
|
|
|
Three months ended
December 31, 2022
|
|
Nine months ended
December 31, 2022
|
GAAP diluted net income
per share
|
$
0.27
|
|
$
0.47
|
Add: Impact of
litigation reserve
|
—
|
|
0.04
|
Add: Impact of earn-out
recorded in connection with the sale of the
MyFitnessPal platform
|
(0.11)
|
|
(0.10)
|
Add: Impact of
commission expense in connection with the sale of the
MyFitnessPal platform
|
—
|
|
—
|
Add: Impact of
provision for income taxes
|
—
|
|
(0.02)
|
Adjusted diluted net
income per share
|
$
0.16
|
|
$
0.39
|
Under Armour, Inc.
Outlook for the Year Ended March 31, 2023
(Unaudited; in millions, except per share
amounts)
|
|
The tables below
present the reconciliation of the Company's fiscal 2023 outlook
presented in accordance
with GAAP to certain adjusted non-GAAP financial measures discussed
in this press release. See "Non-
GAAP Financial Information" above for further information regarding
the Company's use of non-GAAP
financial measures.
|
|
ADJUSTED OPERATING
INCOME RECONCILIATION
|
|
(in
millions)
|
|
Year Ended March 31,
2023
|
|
|
Low end of
estimate
|
|
High end of
estimate
|
GAAP income from
operations
|
|
$
270
|
|
$
290
|
Add: Impact of
litigation reserve
|
|
20
|
|
20
|
Adjusted income from
operations
|
|
$
290
|
|
$
310
|
|
|
ADJUSTED DILUTED
(LOSS) EARNINGS PER SHARE RECONCILIATION
|
|
(in
millions)
|
|
Year Ended March 31,
2023
|
|
|
Low end of
estimate
|
|
High end of
estimate
|
GAAP diluted net income
per share
|
|
$
0.71
|
|
$
0.75
|
Add: Impact of
litigation reserve
|
|
0.04
|
|
0.04
|
Add: Impact of earn-out
recorded in connection with the sale of the MyFitnessPal platform,
net of tax
|
|
(0.08)
|
|
(0.08)
|
Add: Impact of
provision for income taxes
|
|
(0.15)
|
|
(0.15)
|
Adjusted diluted net
income per share
|
|
$
0.52
|
|
$
0.56
|
Under Armour, Inc.
As of December 31, 2022, and 2021
|
|
COMPANY-OWNED &
OPERATED DOOR COUNT
|
|
|
|
December 31,
|
|
|
2022
|
|
2021
|
Factory
House
|
|
177
|
|
180
|
Brand House
|
|
18
|
|
19
|
North
America total doors
|
|
195
|
|
199
|
|
|
|
|
|
Factory
House
|
|
165
|
|
144
|
Brand House
|
|
78
|
|
79
|
International total doors
|
|
243
|
|
223
|
|
|
|
|
|
Factory
House
|
|
342
|
|
324
|
Brand House
|
|
96
|
|
98
|
Total
doors
|
|
438
|
|
422
|
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SOURCE Under Armour, Inc.