BALTIMORE, Aug. 3, 2022
/PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced
unaudited financial results for its first quarter of fiscal 2023
ended June 30, 2022. The company
reports its financial performance in accordance with 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 delivered our quarter, are holding our full-year revenue
outlook, and remain bullish on our brand strength while we navigate
the current environment," said Under Armour Interim President and
CEO Colin Browne. "Our relentless
approach of delivering groundbreaking innovation will continue to
manifest through 2022 and beyond as we work to unleash the full
potential of the Under Armour brand."
Browne continued, "Moving forward, we are digging in to amplify
the strengths of our core strategy while creating additional
opportunities for athletes to wear UA throughout their day. I have
full confidence in the exceptional capabilities of our global team
to deliver more pronounced growth and profitability over the long
term."
First Quarter 2023 Review
- Revenue was flat at $1.3
billion (up 2 percent currency neutral) compared to the
prior year.
-
- Wholesale revenue increased 3 percent to $792 million, and direct-to-consumer revenue
decreased 7 percent to $521 million,
driven by an 8 percent decline in owned and operated store revenue.
eCommerce revenue declined 6 percent and represented 39 percent of
the total direct-to-consumer business during the quarter.
- North America revenue was flat
(up 1 percent currency neutral) compared to the prior year at
$909 million, and international
revenue decreased 3 percent to $431
million (up 2 percent currency neutral). Within the
international business, revenue decreased 1 percent in EMEA (up 6
percent currency neutral), decreased 8 percent in Asia-Pacific (down 4 percent currency
neutral), and increased 6 percent in Latin America (up 6 percent currency
neutral).
- Apparel revenue decreased 1 percent to $868 million. Footwear revenue increased 1
percent to $347 million. Accessories
revenue decreased 13 percent to $97
million.
- Gross margin declined 280 basis points to 46.7 percent
compared to the prior year, driven primarily by elevated freight
expenses related to COVID-19 supply chain impacts, higher than
planned promotions, and the negative impact of changes in foreign
currency.
- Selling, general & administrative expenses increased
9 percent to $596 million, including
$10 million in legal expenses related
to ongoing litigation matters.
- Operating income was $34
million. Adjusted operating income was $44 million.
- Net Income was $8 million.
Adjusted net income was $15
million.
- Diluted earnings per share was $0.02. Adjusted diluted earnings per share was
$0.03.
- Inventory was up 8 percent to $954 million.
- Cash and Cash Equivalents were $1.0 billion at the end of the quarter, and no
borrowings were outstanding under the company's $1.1 billion revolving credit facility.
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:
- No change to the previous expectation of 5 to 7 percent
revenue growth. Excluding approximately 200 basis points of
anticipated foreign currency headwinds, currency-neutral revenue is
expected to be up 7 to 9 percent.
- Gross margin is expected to be down 375 to 425 basis
points compared to the previous expectation of a 150 to 200 basis
point decline compared to the baseline period's gross margin of
49.6 percent. Versus our last outlook, this decline is primarily
driven by expected higher promotional activities, channel mix, and
additional negative impacts from anticipated changes in foreign
currency.
- Selling, general & administrative expenses are
expected to be flat to the prior year as the company prioritizes
investments and implements mitigation measures in response to
anticipated gross margin pressure.
- Operating income is expected to reach $300 to $325
million compared to the previous range of $375 to $400
million. Excluding an expense related to ongoing litigation
matters, adjusted operating income is expected to reach
$310 to $335
million.
- Diluted earnings per share is expected to be
$0.61 to $0.67 compared to the previous expectation of
$0.79 to $0.84. This includes a $0.28 benefit related to a tax valuation
allowance release expected to be realized during the fiscal year.
Of this $0.28 benefit, $0.16 of this amount is related to prior
restructuring. Additionally, there is a $0.02 negative impact from legal expenses related
to ongoing litigation matters. Excluding these net positive impacts
of $0.14, adjusted diluted earnings
per share is expected to be $0.47 to
$0.53, compared to the previous
expectation of $0.63 to $0.68.
- Capital expenditures are expected to be approximately
$225 million, consistent with the
previously provided range of 3 percent to 5 percent of
revenue.
Share Buyback Update
In February 2022, Under Armour
announced that its Board of Directors authorized the repurchase of
up to $500 million of its outstanding
Class C common stock over two years. The company repurchased
$25 million during the first quarter,
leaving approximately $175 million
remaining under this authorization.
Conference Call and Webcast
Under Armour will hold its first quarter fiscal 2023
conference call and webcast 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 impact of legal expenses
related to ongoing litigation matters, 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 earn-outs and related
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 for, 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 and
results of operations and the operations of our suppliers and
logistics providers, expectations regarding promotional activities,
freight, product cost pressures, and foreign currency rates, our
plans to prioritize investments and reduce our operating expenses,
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 changes in 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: 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; changes
in general economic or market conditions that could affect overall
consumer spending or our industry; failure of our suppliers or
manufacturers 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 contained in this press release 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 Months
Ended June 30, 2022, and 2021
|
(Unaudited; in
thousands, except per share amounts)
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
Three Months Ended
June 30,
|
in '000s
|
2022
|
|
% of Net
Revenues
|
|
2021
|
|
% of Net
Revenues
|
Net revenues
|
$ 1,349,057
|
|
100.0 %
|
|
$ 1,351,534
|
|
100.0 %
|
Cost of goods
sold
|
718,860
|
|
53.3 %
|
|
682,713
|
|
50.5 %
|
Gross
profit
|
630,197
|
|
46.7 %
|
|
668,821
|
|
49.5 %
|
Selling, general and
administrative expenses
|
595,714
|
|
44.2 %
|
|
545,003
|
|
40.3 %
|
Restructuring and
impairment charges
|
—
|
|
— %
|
|
2,613
|
|
0.2 %
|
Income (loss) from
operations
|
34,483
|
|
2.6 %
|
|
121,205
|
|
9.0 %
|
Interest income
(expense), net
|
(6,005)
|
|
(0.4) %
|
|
(13,307)
|
|
(1.0) %
|
Other income (expense),
net
|
(14,241)
|
|
(1.1) %
|
|
(38,494)
|
|
(2.8) %
|
Income (loss) before
income taxes
|
14,237
|
|
1.1 %
|
|
69,404
|
|
5.1 %
|
Income tax expense
(benefit)
|
5,657
|
|
0.4 %
|
|
10,027
|
|
0.7 %
|
Income (loss) from
equity method investments
|
(898)
|
|
(0.1) %
|
|
(170)
|
|
— %
|
Net income
(loss)
|
$
7,682
|
|
0.6 %
|
|
$
59,207
|
|
4.4 %
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per share of Class A, B and C common stock
|
$
0.02
|
|
|
|
$
0.13
|
|
|
Diluted net income
(loss) per share of Class A, B and C common stock
|
$
0.02
|
|
|
|
$
0.13
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
Basic
|
458,415
|
|
|
|
459,604
|
|
|
Diluted
|
468,167
|
|
|
|
462,286
|
|
|
Under Armour,
Inc.
|
For the Three Months
Ended June 30, 2022, and 2021
|
(Unaudited; in
thousands)
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
Three Months Ended June
30,
|
in '000s
|
2022
|
|
2021
|
|
% Change
|
Apparel
|
$
868,428
|
|
$
874,193
|
|
(0.7) %
|
Footwear
|
347,251
|
|
342,641
|
|
1.3 %
|
Accessories
|
96,831
|
|
111,503
|
|
(13.2) %
|
Total net
sales
|
1,312,510
|
|
1,328,337
|
|
(1.2) %
|
Licensing
revenues
|
28,135
|
|
23,261
|
|
21.0 %
|
Corporate Other
(1)
|
8,412
|
|
(64)
|
|
NM
|
Total net
revenues
|
$
1,349,057
|
|
$
1,351,534
|
|
(0.2) %
|
|
NET REVENUES BY
DISTRIBUTION CHANNEL
|
|
Three Months Ended June
30,
|
in '000s
|
2022
|
|
2021
|
|
% Change
|
Wholesale
|
$
791,686
|
|
$
767,611
|
|
3.1 %
|
Direct-to-consumer
|
520,824
|
|
560,726
|
|
(7.1) %
|
Net
Sales
|
1,312,510
|
|
1,328,337
|
|
(1.2) %
|
License
revenues
|
28,135
|
|
23,261
|
|
21.0 %
|
Corporate Other
(1)
|
8,412
|
|
(64)
|
|
NM
|
Total net
revenues
|
$
1,349,057
|
|
$
1,351,534
|
|
(0.2) %
|
|
NET REVENUES BY
SEGMENT
|
|
Three Months Ended June
30,
|
in '000s
|
2022
|
|
2021
|
|
% Change
|
North
America
|
$
909,356
|
|
$
905,493
|
|
0.4 %
|
EMEA
|
205,181
|
|
207,224
|
|
(1.0) %
|
Asia-Pacific
|
176,665
|
|
192,369
|
|
(8.2) %
|
Latin
America
|
49,443
|
|
46,512
|
|
6.3 %
|
Corporate Other
(1)
|
8,412
|
|
(64)
|
|
NM
|
Total net
revenues
|
$
1,349,057
|
|
$
1,351,534
|
|
(0.2) %
|
Under Armour,
Inc.
|
For the Three Months
Ended June 30, 2022, and 2021
|
(Unaudited; in
thousands)
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
Three Months Ended June
30,
|
in '000s
|
2022
|
% of Net
Revenues (2)
|
|
2021
|
% of Net
Revenues (2)
|
North
America
|
$
189,924
|
20.9 %
|
|
$
225,769
|
24.9 %
|
EMEA
|
18,181
|
8.9 %
|
|
39,892
|
19.3 %
|
Asia-Pacific
|
19,945
|
11.3 %
|
|
24,046
|
12.5 %
|
Latin
America
|
6,234
|
12.6 %
|
|
6,001
|
12.9 %
|
Corporate Other
(1)
|
(199,801)
|
NM
|
|
(174,503)
|
NM
|
Income (loss) from
operations
|
$ 34,483
|
2.6 %
|
|
$
121,205
|
9.0 %
|
|
(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 June 30,
2022, and March 31, 2022
|
(Unaudited; in
thousands)
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
in '000s
|
|
June 30,
2022
|
|
March 31,
2022
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,049,413
|
|
$
1,009,139
|
Accounts receivable,
net
|
|
693,636
|
|
702,197
|
Inventories
|
|
954,394
|
|
824,455
|
Prepaid expenses and
other current assets, net
|
|
302,644
|
|
297,034
|
Total current
assets
|
|
3,000,087
|
|
2,832,825
|
Property and equipment,
net
|
|
609,923
|
|
601,365
|
Operating lease
right-of-use assets
|
|
408,753
|
|
420,397
|
Goodwill
|
|
479,521
|
|
491,508
|
Intangible assets,
net
|
|
9,910
|
|
10,580
|
Deferred income
taxes
|
|
19,444
|
|
20,141
|
Other long-term
assets
|
|
78,162
|
|
76,016
|
Total
assets
|
|
$
4,605,800
|
|
$
4,452,832
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Accounts
payable
|
|
669,203
|
|
560,331
|
Accrued
expenses
|
|
373,045
|
|
317,963
|
Customer refund
liabilities
|
|
157,487
|
|
159,628
|
Operating lease
liabilities
|
|
131,438
|
|
134,833
|
Other current
liabilities
|
|
127,507
|
|
125,840
|
Total current
liabilities
|
|
1,458,680
|
|
1,298,595
|
Long-term debt, net of
current maturities
|
|
672,834
|
|
672,286
|
Operating lease
liabilities, non-current
|
|
650,833
|
|
668,983
|
Other long-term
liabilities
|
|
94,378
|
|
84,014
|
Total
liabilities
|
|
2,876,725
|
|
2,723,878
|
Total stockholders'
equity
|
|
1,729,075
|
|
1,728,954
|
Total liabilities
and stockholders' equity
|
|
$
4,605,800
|
|
$
4,452,832
|
Under Armour,
Inc.
|
For the Three Months
Ended June 30, 2022, and 2021
|
(Unaudited; in
thousands)
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
Three Months Ended
June 30,
|
in '000s
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
7,682
|
|
$
59,207
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities
|
|
|
|
Depreciation and
amortization
|
34,321
|
|
35,147
|
Unrealized foreign
currency exchange rate (gain) loss
|
7,856
|
|
(2,478)
|
Loss on extinguishment
of senior convertible notes
|
—
|
|
34,728
|
Loss on disposal of
property and equipment
|
322
|
|
820
|
Non-cash restructuring
and impairment charges
|
—
|
|
(13)
|
Amortization of bond
premium and debt issuance costs
|
548
|
|
11,064
|
Stock-based
compensation
|
11,375
|
|
11,533
|
Deferred income
taxes
|
(1,125)
|
|
(999)
|
Changes in reserves
and allowances
|
194
|
|
(9,167)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
8,586
|
|
64,803
|
Inventories
|
(134,210)
|
|
(26,862)
|
Prepaid expenses and
other assets
|
(8,113)
|
|
(18,937)
|
Other non-current
assets
|
19,796
|
|
19,463
|
Accounts
payable
|
96,319
|
|
107,332
|
Accrued expenses and
other liabilities
|
43,524
|
|
(23,647)
|
Customer refund
liabilities
|
(2,528)
|
|
(13,481)
|
Income taxes payable
and receivable
|
2,949
|
|
4,310
|
Net cash provided by
(used in) operating activities
|
87,496
|
|
252,823
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(35,747)
|
|
(19,668)
|
Sale of property and
equipment
|
—
|
|
485
|
Earn-out from the sale
of the MyFitnessPal platform
|
35,000
|
|
—
|
Net cash used in
investing activities
|
(747)
|
|
(19,183)
|
Cash flows from
financing activities
|
|
|
|
Common Shares
Repurchased
|
(25,000)
|
|
—
|
Employee taxes paid for
shares withheld for income taxes
|
352
|
|
(209)
|
Proceeds from exercise
of stock options and other stock issuances
|
993
|
|
89
|
Payments on long-term
debt and revolving credit facility
|
—
|
|
(300,001)
|
Proceeds from capped
call
|
—
|
|
53,000
|
Net cash provided by
(used in) financing activities
|
(24,359)
|
|
(247,121)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(21,454)
|
|
15,681
|
Net increase in
(decrease in) cash, cash equivalents and restricted cash
|
40,936
|
|
2,200
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
1,022,126
|
|
1,359,680
|
End of
period
|
$
1,063,062
|
|
$
1,361,880
|
Under Armour,
Inc.
|
For the Three months
ended June 30, 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
June 30, 2022
|
Total Net
Revenue
|
|
Net revenue growth -
GAAP
|
(0.2) %
|
Foreign exchange
impact
|
1.8 %
|
Currency neutral net
revenue growth - Non-GAAP
|
1.6 %
|
|
|
North
America
|
|
Net revenue growth -
GAAP
|
0.4 %
|
Foreign exchange
impact
|
0.3 %
|
Currency neutral net
revenue growth - Non-GAAP
|
0.7 %
|
|
|
EMEA
|
|
Net revenue growth -
GAAP
|
(1.0) %
|
Foreign exchange
impact
|
7.0 %
|
Currency neutral net
revenue growth - Non-GAAP
|
6.0 %
|
|
|
Asia-Pacific
|
|
Net revenue growth -
GAAP
|
(8.2) %
|
Foreign exchange
impact
|
3.8 %
|
Currency neutral net
revenue growth - Non-GAAP
|
(4.4) %
|
|
|
Latin
America
|
|
Net revenue growth -
GAAP
|
6.3 %
|
Foreign exchange
impact
|
(0.7) %
|
Currency neutral net
revenue growth - Non-GAAP
|
5.6 %
|
|
|
Total
International
|
|
Net revenue growth -
GAAP
|
(3.3) %
|
Foreign exchange
impact
|
4.8 %
|
Currency neutral net
revenue growth - Non-GAAP
|
1.5 %
|
Under Armour,
Inc.
|
For the Three months
ended June 30, 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 June
30, 2022
|
GAAP Income from
operations
|
|
$
34,483
|
Add: Impact of legal
expenses relating to litigation matters
|
|
$
10,000
|
Adjusted income from
operations
|
|
$
44,483
|
|
ADJUSTED NET INCOME
(LOSS) RECONCILIATION
|
in '000s
|
|
Three months ended June
30, 2022
|
GAAP net
income
|
|
$
7,682
|
Add: Impact of legal
expenses relating to litigation matters
|
|
10,000
|
Add: Impact of
commission expense in connection with the sale of the MyFitnessPal
platform
|
|
490
|
Add: Impact of
provision for income taxes
|
|
(3,313)
|
Adjusted net
income
|
|
$
14,859
|
|
ADJUSTED DILUTED
EARNINGS (LOSS) PER SHARE RECONCILIATION
|
|
|
Three months ended June
30, 2022
|
GAAP diluted net income
per share
|
|
$
0.02
|
Add: Impact of legal
expenses relating to litigation matters
|
|
0.02
|
Add: Impact of
commission expense in connection with the sale of the MyFitnessPal
platform
|
|
—
|
Add: Impact of
provision for income taxes
|
|
(0.01)
|
Adjusted diluted net
income per share
|
|
$
0.03
|
Under Armour,
Inc.
|
Outlook for the Year
Ended March 31, 2023
|
(Unaudited; in millions, except per share
amounts)
|
|
The table below
presents 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.
|
|
CURRENCY NEUTRAL NET
REVENUE GROWTH (DECLINE) RECONCILIATION
|
(in
millions)
|
|
Year Ended March 31,
2023
|
|
|
Low end of
estimate
|
High end of
estimate
|
Total Net
Revenue
|
|
|
|
Net revenue growth -
GAAP
|
|
5 %
|
7 %
|
Foreign exchange
impact
|
|
2 %
|
2 %
|
Currency neutral net
revenue growth - Non-GAAP
|
|
7 %
|
9 %
|
|
ADJUSTED OPERATING
INCOME RECONCILIATION
|
(in
millions)
|
|
Year Ended March 31,
2023
|
|
|
Low end of
estimate
|
High end of
estimate
|
GAAP income from
operations
|
|
$
300
|
$
325
|
Add: Impact of legal
expenses relating to litigation matters
|
|
10
|
10
|
Adjusted income from
operations
|
|
$
310
|
$
335
|
|
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 (1)
|
|
$
0.61
|
$
0.67
|
Add: Impact of legal
expenses relating to litigation matters
|
|
0.02
|
0.02
|
Add: Impact of
provision for income taxes
|
|
(0.16)
|
(0.16)
|
Adjusted diluted net
income per share
|
|
$
0.47
|
$
0.53
|
(1) GAAP diluted net
income (loss) per share excludes any potential earn-out related to
the sale of the MyFitnessPal platform.
|
Under Armour,
Inc.
|
As of June 30, 2022,
and 2021
|
|
COMPANY-OWNED &
OPERATED DOOR COUNT
|
|
|
June 30,
|
|
|
2022
|
|
2021
|
Factory
House
|
|
179
|
|
178
|
Brand House
|
|
18
|
|
17
|
North
America total doors
|
|
197
|
|
195
|
|
|
|
|
|
Factory
House
|
|
156
|
|
137
|
Brand House
|
|
87
|
|
95
|
International total doors
|
|
243
|
|
232
|
|
|
|
|
|
Factory
House
|
|
335
|
|
315
|
Brand House
|
|
105
|
|
112
|
Total
doors
|
|
440
|
|
427
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/under-armour-reports-first-quarter-fiscal-2023-results-updates-full-year-outlook-301598501.html
SOURCE Under Armour, Inc.