UNDER ARMOUR REPORTS THIRD QUARTER FISCAL 2024 RESULTS; TIGHTENS FISCAL 2024 OUTLOOK
"Despite a mixed retail environment during the holiday season, our third quarter revenue results were in line with our expectations; we were able to deliver better than anticipated profitability and remain on track to achieve our full-year outlook," said
Third Quarter Fiscal 2024 Review
-
Revenue was down 6 percent to
$1.5 billion (down 7 percent currency neutral).- Wholesale revenue decreased 13 percent to
$712 million , and direct-to-consumer revenue increased 4 percent to$741 million due to a 5 percent increase in owned and operated store revenue and a 2 percent increase in eCommerce revenue, which represented 45 percent of the total direct-to-consumer business in the quarter. North America revenue decreased 12 percent to$915 million , and international revenue increased 7 percent to$566 million (up 4 percent currency neutral). In the international business, revenue increased 7 percent in EMEA (up 2 percent currency neutral), 7 percent inAsia-Pacific (up 8 percent currency neutral), and 9 percent inLatin America (up 3 percent currency neutral).- Apparel revenue decreased 6 percent to
$1 billion . Footwear revenue was down 7 percent to$331 million . Accessories revenue was flat at$105 million .
- Wholesale revenue decreased 13 percent to
- Gross margin increased 100 basis points to 45.2 percent, driven primarily by supply chain benefits related to lower freight expenses, partially offset by proactive inventory management actions, including a higher percentage of sales to the off-price channel and increased promotional activities in our direct-to-consumer business.
-
Selling, general & administrative expenses were flat year over year at
$602 million , including a$23 million litigation reserve expense. Adjusted selling, general & administrative expenses were down 4 percent to$579 million . -
Operating income was
$70 million . Adjusted operating income was$92 million . -
Net Income was
$114 million . Excluding a$50 million earn-out benefit in connection with the sale of the MyFitnessPal platform, the litigation reserve expense, and related tax impacts, the adjusted net income was$84 million . -
Diluted earnings per share was
$0.26 . Adjusted diluted earnings per share was$0.19 . -
Inventory was down 9 percent to
$1.1 billion . -
Cash and Cash Equivalents were
$1 billion at the end of the quarter, and no borrowings were outstanding under the company's$1.1 billion revolving credit facility.
Share Buyback Update
Updated Fiscal 2024 Outlook
Key points related to
- Revenue is expected to be down 3 to 4 percent, tightening the previous expectation of a 2 to 4 percent decline.
- Gross margin is expected to be up 120 to 130 basis points, an increase from the prior expectation of a 100 to 125 basis point increase.
- Selling, general & administrative expenses are unchanged from the previous expectation of "flat to down slightly."
-
Operating income is expected to reach
$287 million to$297 million . Excluding the company's litigation reserve, adjusted operating income is expected to be$310 million to$320 million . -
Diluted earnings per share is expected to be
$0.57 to$0.59 which includes$0.12 of after-tax benefit from the company's final earn-out in connection with the sale of the MyFitnessPal platform and$0.05 of negative impact from the company's litigation reserve. Excluding these net positive impacts of$0.07 , the company expects its adjusted diluted earnings per share to be$0.50 to$0.52 . -
Capital expenditures are now expected to reach between
$210 million and$230 million versus the previous expectation of$230 million and$250 million .
Conference Call and Webcast
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 2024 fiscal year ending
About
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 future financial condition or results of operations, our prospects and strategies for future growth, 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, our liquidity and use of capital resources, the development and introduction of new products, the implementation of our marketing and branding strategies, the future benefits and opportunities from significant investments, and the impact of litigation or other proceedings. 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 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 in our industry; the impact of the COVID-19 pandemic on our industry and our business, financial condition and results of operations, including 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 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 effectively market and maintain a positive brand image; 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 conflicts; our ability to successfully manage or realize expected results from significant transactions and investments; 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 effectively drive operational efficiency in our business; 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 and the financial impact of 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.
For the Three and Nine Months Ended (Unaudited; in thousands, except per share amounts)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
in '000s |
|
2023 |
|
% of Net
|
|
2022 |
|
% of Net
|
|
2023 |
|
% of Net
|
|
2022 |
|
% of Net
|
Net revenues |
|
$ 1,486,095 |
|
100.0 % |
|
$ 1,581,781 |
|
100.0 % |
|
$ 4,369,817 |
|
100.0 % |
|
$ 4,504,723 |
|
100.0 % |
Cost of goods sold |
|
814,914 |
|
54.8 % |
|
883,376 |
|
55.8 % |
|
2,338,905 |
|
53.5 % |
|
2,462,287 |
|
54.7 % |
Gross profit |
|
671,181 |
|
45.2 % |
|
698,405 |
|
44.2 % |
|
2,030,912 |
|
46.5 % |
|
2,042,436 |
|
45.3 % |
Selling, general and administrative expenses |
|
601,661 |
|
40.5 % |
|
603,746 |
|
38.2 % |
|
1,794,703 |
|
41.1 % |
|
1,793,884 |
|
39.8 % |
Income (loss) from operations |
|
69,520 |
|
4.7 % |
|
94,659 |
|
6.0 % |
|
236,209 |
|
5.4 % |
|
248,552 |
|
5.5 % |
Interest income (expense), net |
|
(211) |
|
— % |
|
(1,615) |
|
(0.1) % |
|
(2,210) |
|
(0.1) % |
|
(11,175) |
|
(0.2) % |
Other income (expense), net |
|
49,636 |
|
3.3 % |
|
47,312 |
|
3.0 % |
|
36,822 |
|
0.8 % |
|
27,300 |
|
0.6 % |
Income (loss) before income taxes |
|
118,945 |
|
8.0 % |
|
140,356 |
|
8.9 % |
|
270,821 |
|
6.2 % |
|
264,677 |
|
5.9 % |
Income tax expense (benefit) |
|
4,999 |
|
0.3 % |
|
18,811 |
|
1.2 % |
|
38,464 |
|
0.9 % |
|
46,719 |
|
1.0 % |
Income (loss) from equity method investments |
|
197 |
|
— % |
|
72 |
|
— % |
|
(51) |
|
— % |
|
(1,734) |
|
— % |
Net income (loss) |
|
$ 114,143 |
|
7.7 % |
|
$ 121,617 |
|
7.7 % |
|
$ 232,306 |
|
5.3 % |
|
$ 216,224 |
|
4.8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share of Class A, B and |
|
$ 0.26 |
|
|
|
$ 0.27 |
|
|
|
$ 0.53 |
|
|
|
$ 0.48 |
|
|
Diluted net income (loss) per share of Class A, B and |
|
$ 0.26 |
|
|
|
$ 0.27 |
|
|
|
$ 0.52 |
|
|
|
$ 0.47 |
|
|
Weighted average common shares outstanding Class A, B and C common stock |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
437,314 |
|
|
|
448,833 |
|
|
|
441,893 |
|
|
|
453,840 |
|
|
Diluted |
|
448,435 |
|
|
|
458,990 |
|
|
|
452,208 |
|
|
|
463,750 |
|
|
For the Three and Nine Months Ended (Unaudited; in thousands)
NET REVENUES BY PRODUCT CATEGORY |
|||||||||||||
|
|||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
in '000s |
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
Apparel |
|
|
$ 1,016,707 |
|
$ 1,075,714 |
|
(5.5) % |
|
$ 2,911,804 |
|
$ 2,982,410 |
|
(2.4) % |
Footwear |
|
|
331,000 |
|
354,389 |
|
(6.6) % |
|
1,045,872 |
|
1,077,525 |
|
(2.9) % |
Accessories |
|
|
104,510 |
|
104,875 |
|
(0.3) % |
|
316,305 |
|
312,823 |
|
1.1 % |
|
|
|
1,452,217 |
|
1,534,978 |
|
(5.4) % |
|
4,273,981 |
|
4,372,758 |
|
(2.3) % |
Licensing revenues |
|
|
29,069 |
|
29,734 |
|
(2.2) % |
|
82,787 |
|
90,992 |
|
(9.0) % |
Corporate Other (1) |
|
|
4,809 |
|
17,069 |
|
(71.8) % |
|
13,049 |
|
40,973 |
|
(68.2) % |
Total net revenues |
|
|
$ 1,486,095 |
|
$ 1,581,781 |
|
(6.0) % |
|
$ 4,369,817 |
|
$ 4,504,723 |
|
(3.0) % |
|
|||||||||||||
NET REVENUES BY DISTRIBUTION CHANNEL |
|||||||||||||
|
|||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
in '000s |
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
Wholesale |
|
|
$ 711,699 |
|
$ 819,781 |
|
(13.2) % |
|
$ 2,393,382 |
|
$ 2,559,621 |
|
(6.5) % |
Direct-to-consumer |
|
|
740,518 |
|
715,197 |
|
3.5 % |
|
1,880,599 |
|
1,813,137 |
|
3.7 % |
|
|
|
1,452,217 |
|
1,534,978 |
|
(5.4) % |
|
4,273,981 |
|
4,372,758 |
|
(2.3) % |
License revenues |
|
|
29,069 |
|
29,734 |
|
(2.2) % |
|
82,787 |
|
90,992 |
|
(9.0) % |
Corporate Other (1) |
|
|
4,809 |
|
17,069 |
|
(71.8) % |
|
13,049 |
|
40,973 |
|
(68.2) % |
Total net revenues |
|
|
$ 1,486,095 |
|
$ 1,581,781 |
|
(6.0) % |
|
$ 4,369,817 |
|
$ 4,504,723 |
|
(3.0) % |
|
|||||||||||||
NET REVENUES BY SEGMENT |
|||||||||||||
|
|||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
in '000s |
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
|
|
|
$ 915,387 |
|
$ 1,037,637 |
|
(11.8) % |
|
$ 2,733,432 |
|
$ 2,958,816 |
|
(7.6) % |
EMEA |
|
|
284,049 |
|
265,250 |
|
7.1 % |
|
797,781 |
|
733,110 |
|
8.8 % |
|
|
|
212,018 |
|
198,021 |
|
7.1 % |
|
646,315 |
|
600,415 |
|
7.6 % |
|
|
|
69,832 |
|
63,804 |
|
9.4 % |
|
179,240 |
|
171,409 |
|
4.6 % |
Corporate Other (1) |
|
|
4,809 |
|
17,069 |
|
(71.8) % |
|
13,049 |
|
40,973 |
|
(68.2) % |
Total net revenues |
|
|
$ 1,486,095 |
|
$ 1,581,781 |
|
(6.0) % |
|
$ 4,369,817 |
|
$ 4,504,723 |
|
(3.0) % |
|
(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. |
For the Three and Nine Months Ended (Unaudited; in thousands)
INCOME (LOSS) FROM OPERATIONS BY SEGMENT |
|||||||||||
|
|||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||
in '000s |
2023 |
% of Net |
|
2022 |
% of Net |
|
2023 |
% of Net |
|
2022 |
% of Net |
|
$ 161,663 |
17.7 % |
|
$ 198,919 |
19.2 % |
|
$ 535,171 |
19.6 % |
|
$ 598,049 |
20.2 % |
EMEA |
51,635 |
18.2 % |
|
30,947 |
11.7 % |
|
123,281 |
15.5 % |
|
85,023 |
11.6 % |
|
16,014 |
7.6 % |
|
10,811 |
5.5 % |
|
86,020 |
13.3 % |
|
76,890 |
12.8 % |
|
13,569 |
19.4 % |
|
5,805 |
9.1 % |
|
32,990 |
18.4 % |
|
19,216 |
11.2 % |
Corporate Other (1) |
(173,361) |
NM |
|
(151,823) |
NM |
|
(541,253) |
NM |
|
(530,626) |
NM |
Income (loss) from operations |
$ 69,520 |
4.7 % |
|
$ 94,659 |
6.0 % |
|
$ 236,209 |
5.4 % |
|
$ 248,552 |
5.5 % |
|
(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). |
As of (Unaudited; in thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||
|
||||
in '000s |
|
|
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ 1,040,090 |
|
$ 711,910 |
Accounts receivable, net |
|
691,546 |
|
759,860 |
Inventories |
|
1,104,027 |
|
1,190,253 |
Prepaid expenses and other current assets, net |
|
287,153 |
|
297,563 |
Total current assets |
|
3,122,816 |
|
2,959,586 |
Property and equipment, net |
|
714,183 |
|
672,736 |
Operating lease right-of-use assets |
|
456,201 |
|
489,306 |
|
|
481,573 |
|
481,992 |
Intangible assets, net |
|
8,002 |
|
8,940 |
Deferred income taxes |
|
210,600 |
|
186,167 |
Other long-term assets |
|
51,131 |
|
58,356 |
Total assets |
|
$ 5,044,506 |
|
$ 4,857,083 |
Liabilities and Stockholders' Equity |
|
|
|
|
Current maturities of long-term debt |
|
$ 80,919 |
|
$ — |
Accounts payable |
|
699,431 |
|
649,116 |
Accrued expenses |
|
322,780 |
|
354,643 |
Customer refund liabilities |
|
160,786 |
|
160,533 |
Operating lease liabilities |
|
143,425 |
|
140,990 |
Other current liabilities |
|
58,841 |
|
51,609 |
Total current liabilities |
|
1,466,182 |
|
1,356,891 |
Long-term debt, net of current maturities |
|
595,124 |
|
674,478 |
Operating lease liabilities, non-current |
|
654,216 |
|
705,713 |
Other long-term liabilities |
|
155,964 |
|
121,598 |
Total liabilities |
|
2,871,486 |
|
2,858,680 |
Total stockholders' equity |
|
2,173,020 |
|
1,998,403 |
Total liabilities and stockholders' equity |
|
$ 5,044,506 |
|
$ 4,857,083 |
For the Nine Months Ended (Unaudited; in thousands)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
|
|||
|
Nine Months Ended |
||
in '000s |
2023 |
|
2022 |
Cash flows from operating activities |
|
|
|
Net income (loss) |
$ 232,306 |
|
$ 216,224 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
Depreciation and amortization |
106,685 |
|
102,656 |
Unrealized foreign currency exchange rate (gain) loss |
(904) |
|
(19,424) |
Loss on disposal of property and equipment |
746 |
|
1,411 |
Amortization of bond premium and debt issuance costs |
1,565 |
|
1,644 |
Stock-based compensation |
33,163 |
|
29,362 |
Deferred income taxes |
(24,430) |
|
(132) |
Changes in reserves and allowances |
25,085 |
|
7,316 |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
55,912 |
|
1,026 |
Inventories |
71,400 |
|
(401,551) |
Prepaid expenses and other assets |
(45,363) |
|
(68,931) |
Other non-current assets |
42,149 |
|
(46,272) |
Accounts payable |
31,470 |
|
168,681 |
Accrued expenses and other liabilities |
(42,630) |
|
50,892 |
Customer refund liabilities |
80 |
|
12,440 |
Income taxes payable and receivable |
5,884 |
|
19,057 |
Net cash provided by (used in) operating activities |
493,118 |
|
74,399 |
Cash flows from investing activities |
|
|
|
Purchases of property and equipment |
(132,796) |
|
(147,620) |
Earn-out from the sale of the MyFitnessPal platform |
45,000 |
|
35,000 |
Net cash provided by (used in) investing activities |
(87,796) |
|
(112,620) |
Cash flows from financing activities |
|
|
|
Common shares repurchased |
(75,000) |
|
(125,000) |
Employee taxes paid for shares withheld for income taxes |
(2,428) |
|
(868) |
Proceeds from exercise of stock options and other stock issuances |
2,443 |
|
2,809 |
Net cash provided by (used in) financing activities |
(74,985) |
|
(123,059) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
136 |
|
3,205 |
Net increase in (decrease in) cash, cash equivalents and restricted cash |
330,473 |
|
(158,075) |
Cash, cash equivalents and restricted cash |
|
|
|
Beginning of period |
727,726 |
|
1,022,126 |
End of period |
$ 1,058,199 |
|
$ 864,051 |
For the Three and Nine Months Ended (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 |
|
Nine Months Ended |
Total Net Revenue |
|
|
|
Net revenue growth - GAAP |
(6.0) % |
|
(3.0) % |
Foreign exchange impact |
(1.1) % |
|
(0.2) % |
Currency neutral net revenue growth - Non-GAAP |
(7.1) % |
|
(3.2) % |
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
(11.8) % |
|
(7.6) % |
Foreign exchange impact |
— % |
|
0.3 % |
Currency neutral net revenue growth - Non-GAAP |
(11.8) % |
|
(7.3) % |
|
|
|
|
EMEA |
|
|
|
Net revenue growth - GAAP |
7.1 % |
|
8.8 % |
Foreign exchange impact |
(5.1) % |
|
(3.5) % |
Currency neutral net revenue growth - Non-GAAP |
2.0 % |
|
5.3 % |
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
7.1 % |
|
7.6 % |
Foreign exchange impact |
0.4 % |
|
3.5 % |
Currency neutral net revenue growth - Non-GAAP |
7.5 % |
|
11.1 % |
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
9.4 % |
|
4.6 % |
Foreign exchange impact |
(6.7) % |
|
(8.7) % |
Currency neutral net revenue growth - Non-GAAP |
2.7 % |
|
(4.1) % |
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
7.4 % |
|
7.9 % |
Foreign exchange impact |
(3.3) % |
|
(1.4) % |
Currency neutral net revenue growth - Non-GAAP |
4.1 % |
|
6.5 % |
For the Three and Nine Months Ended (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 SELLING GENERAL AND ADMINISTRATIVE EXPENSES |
|||
|
|||
in '000s |
Three months ended |
|
Nine months ended |
GAAP selling, general and administrative expenses |
$ 601,661 |
|
$ 1,794,703 |
Add: Impact of litigation reserve |
(22,500) |
|
(22,500) |
Adjusted selling, general and administrative expenses |
$ 579,161 |
|
$ 1,772,203 |
|
|||
ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION |
|||
|
|||
in '000s |
Three months ended |
|
Nine months ended |
GAAP income from operations |
$ 69,520 |
|
$ 236,209 |
Add: Impact of litigation reserve |
22,500 |
|
22,500 |
Adjusted income from operations |
$ 92,020 |
|
$ 258,709 |
|
|||
ADJUSTED NET INCOME (LOSS) RECONCILIATION |
|||
|
|||
in '000s |
Three months ended |
|
Nine months ended |
GAAP net income |
$ 114,143 |
|
$ 232,306 |
Add: Impact of litigation reserve |
22,500 |
|
22,500 |
Add: Impact of earn-out recorded in connection with the sale of the |
(50,000) |
|
(50,000) |
Add: Impact of commission expense in connection with the sale of the |
700 |
|
700 |
Add: Impact of provision for income taxes |
(3,109) |
|
(3,109) |
Adjusted net income |
$ 84,234 |
|
$ 202,397 |
|
|||
ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION |
|||
|
|||
|
Three months ended |
|
Nine months ended |
GAAP diluted net income per share |
$ 0.26 |
|
$ 0.52 |
Add: Impact of litigation reserve |
0.05 |
|
0.05 |
Add: Impact of earn-out recorded in connection with the sale of the |
(0.11) |
|
(0.11) |
Add: Impact of commission expense in connection with the sale of the |
— |
|
— |
Add: Impact of provision for income taxes |
(0.01) |
|
(0.01) |
Adjusted diluted net income per share |
$ 0.19 |
|
$ 0.45 |
Outlook for the Year Ended (Unaudited; in millions, except per share amounts)
The tables below present the reconciliation of the Company's fiscal 2024 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 |
||
|
|
Low end of estimate |
|
High end of estimate |
GAAP income from operations |
|
|
|
|
Add: Impact of litigation reserve |
|
23 |
|
23 |
Adjusted income from operations |
|
|
|
|
|
||||
ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION |
||||
|
||||
(in millions) |
|
Year Ended |
||
|
|
Low end of estimate |
|
High end of estimate |
GAAP diluted net income per share |
|
|
|
|
Add: Impact of litigation reserve, net of tax |
|
0.05 |
|
0.05 |
Add: Impact of earn-out recorded in connection with the sale of the MyFitnessPal platform, net of tax |
|
(0.12) |
|
(0.12) |
Adjusted diluted net income per share |
|
|
|
|
|
As of COMPANY-OWNED & OPERATED DOOR COUNT |
||||
|
||||
|
|
|
||
|
|
2023 |
|
2022 |
Factory House |
|
183 |
|
177 |
Brand House |
|
17 |
|
18 |
|
|
200 |
|
195 |
|
|
|
|
|
Factory House |
|
173 |
|
165 |
Brand House |
|
67 |
|
78 |
International total doors |
|
240 |
|
243 |
|
|
|
|
|
Factory House |
|
356 |
|
342 |
Brand House |
|
84 |
|
96 |
Total doors |
|
440 |
|
438 |
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