UNDER ARMOUR REPORTS THIRD QUARTER 2025 RESULTS; RAISES FISCAL 2025 OUTLOOK
"We are pleased our quarterly results exceeded expectations," said
"Additionally, we will enter a pivotal new chapter in our marketing strategy by launching a dynamic, multi-year initiative of storytelling that showcases our incredible products, talented athletes, and influential creators," Plank continued. "This will greatly enhance our visibility and empower our authentic connection with athletes to elevate our brand like never before."
Third Quarter Fiscal 2025 Review
-
Revenue was down 6 percent to
$1.4 billion (down 6 percent currency neutral).North America revenue decreased 8 percent to$844 million , and international revenue decreased 1 percent to$558 million (down 2 percent currency neutral). In the international business, revenue in EMEA was up 5 percent (up 3 percent currency neutral), down 5 percent inAsia-Pacific (down 6 percent currency neutral), and down 16 percent inLatin America (down 9 percent currency neutral).- Wholesale revenue decreased 1 percent to
$705 million , and direct-to-consumer revenue was down 9 percent to$673 million . Revenue from owned and operated stores declined 1 percent, while eCommerce revenue was down 20 percent due to ongoing planned decreases in promotional activities, representing 39 percent of the total direct-to-consumer business for the quarter. - Apparel revenue decreased 5 percent to
$966 million , footwear revenue was down 9 percent to$301 million , and accessories revenue was up 6 percent to$110 million .
- Gross margin increased 240 basis points to 47.5 percent, driven primarily by less direct-to-consumer discounting, lower product and freight costs, and favorable impacts from changes in foreign currency.
-
Selling, general, and administrative expenses increased 6 percent to
$638 million , primarily due to increased marketing investments. Adjusted selling, general, and administrative expenses increased 5 percent to$606 million , which excludes an impairment of$28 million related to exiting our previous global headquarters and approximately$4 million in transformation expenses related to our Fiscal 2025 restructuring program. -
Restructuring charges were
$14 million . -
Operating income was
$14 million . Excluding the impairment charge, transformation expenses, and restructuring charges, adjusted operating income was$60 million . -
Net income was
$1 million . Adjusted net income was$35 million . -
Diluted earnings per share was
$0.00 . Adjusted diluted earnings per share was$0.08 . -
Inventory was flat at
$1.1 billion . - At the end of the quarter, cash and cash equivalents totaled
$727 million , and no borrowings were outstanding under the company's$1.1 billion revolving credit facility.
Share Buyback Program
Fiscal 2025 Restructuring Plan
In
Updated Fiscal 2025 Outlook
Key points related to
-
Revenue is expected to decline by approximately 10 percent compared to the prior expectation of a low double-digit percentage decline. This includes an expected 12 to 13 percent decline in
North America versus the previous expectation of a 14 to 16 percent decline, and a mid-single-digit decrease in international sales compared to the prior expectation of a low single-digit decline. In the international business, the company expects flat results in EMEA (no change) and a low-teen percent drop in theAsia-Pacific region compared to the prior expectation of a high single-digit decline. - Gross margin is expected to increase by approximately 160 basis points, compared to the prior expectation of 125 to 150 basis points. The annual improvement is driven primarily by less direct-to-consumer discounting and lower product and freight costs.
- Selling, general, and administrative expenses are expected to increase at a high single-digit percentage rate, primarily due to litigation settlement expenses. Excluding these litigation settlement expenses, related insurance recoveries, anticipated transformation expenses, and impairment charges, adjusted selling, general, and administrative expenses are expected to decrease at a low single-digit percentage rate versus the prior expectation for a low-to-mid single-digit percentage decline.
-
Operating loss is expected to be
$179 to$189 million , compared to the previous expectation of$176 to$196 million . Excluding the midpoint of anticipated restructuring charges and transformation expenses, litigation settlement expenses and related insurance recoveries, and impairment charges, adjusted operating income is expected to be$185 to$195 million , compared to the prior expectation of$165 to$185 million . -
Diluted loss per share is expected to be
$0.48 to$0.50 , compared to the prior expectation of$0.48 to$0.51 . Adjusted diluted earnings per share is expected to be$0.28 to$0.30 , compared to the previous expectation of$0.24 to$0.27 . -
Capital expenditures are expected to be
$170 to$180 million , compared to the previous estimate of$190 to$210 million .
Conference Call and Webcast
Non-GAAP Financial Information
This press release discusses "currency-neutral" and "adjusted" results, as well as the company's "adjusted" forward-looking estimates for the 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, future 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, future financial condition or results of operations, growth prospects and strategies, potential restructuring efforts (including the scope, anticipated charges and costs, the timing of these measures and the anticipated benefits of our restructuring initiatives), expectations related to promotional activities, freight, product cost pressures, foreign currency effects, the impact of global economic conditions and inflation on our results of operations, liquidity and use of capital resources, the development and introduction of new products, the execution of marketing strategies, benefits from significant investments, and impacts from litigation or other proceedings. In many cases, you can identify forward-looking statements by terms such as "may," "will," "could," "should," "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 the expectations reflected in the forward-looking statements are reasonable, they are inherently uncertain. 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. Several 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 (such as rising inflation) that could influence overall consumer spending or our industry; our ability to comply with existing trade and other regulations, and the potential impact of new trade, tariff and tax regulations on our profitability; increased competition that may cause us to lose market share, lower product prices or significantly increase marketing efforts; fluctuations in the costs of raw materials and commodities we use in our products and supply chain (including labor); our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business; changes in the financial health of our customers; our ability to successfully develop and launch new, innovative, and updated products; our ability to accurately forecast consumer preferences and demand for our products and to effectively manage our inventory; our ability to successfully execute potential restructuring plans and achieve expected benefits; loss of key customers, suppliers, or manufacturers; our ability to further expand our business globally and 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; the impact of global or regional public health emergencies on our industry and our business, financial condition, and results of operations, including impacts on the global supply chain; our ability to successfully manage or achieve expected outcomes from significant transactions and investments; our ability to effectively market and maintain a positive brand image; our ability to attract key talent and retain the services of our senior management and other key employees; our ability to effectively meet regulatory requirements and stakeholder expectations with respect to sustainability and social matters; 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 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; 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 date on which the statement is made or to reflect unanticipated events.
As previously disclosed, during Fiscal 2024, we identified and corrected certain accounting errors, primarily related to the cost of goods sold and selling, general and administrative expenses on the Consolidated Statement of Operations, and corresponding impacts to our other Consolidated Financial Statements. The impacts of these revisions were not material to our previously filed financial statements. Information presented in the tables below for the three and nine months ended
|
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 |
2024 |
|
% of Net |
|
2023 |
|
% of Net |
|
2024 |
|
% of Net |
|
2023 |
|
% of Net |
|
Net revenues |
|
|
100.0 % |
|
|
|
100.0 % |
|
|
|
100.0 % |
|
|
|
100.0 % |
|
Cost of goods sold |
735,884 |
|
52.5 % |
|
815,404 |
|
54.9 % |
|
2,059,765 |
|
51.7 % |
|
2,339,025 |
|
53.5 % |
|
Gross profit |
665,155 |
|
47.5 % |
|
670,639 |
|
45.1 % |
|
1,923,962 |
|
48.3 % |
|
2,030,657 |
|
46.5 % |
|
Selling, general and administrative expenses |
637,701 |
|
45.5 % |
|
599,230 |
|
40.3 % |
|
1,994,858 |
|
50.1 % |
|
1,797,352 |
|
41.1 % |
|
Restructuring charges |
13,945 |
|
1.0 % |
|
— |
|
— % |
|
42,243 |
|
1.1 % |
|
— |
|
— % |
|
Income (loss) from operations |
13,509 |
|
1.0 % |
|
71,409 |
|
4.8 % |
|
(113,139) |
|
(2.8) % |
|
233,305 |
|
5.3 % |
|
Interest income (expense), net |
(3,391) |
|
(0.2) % |
|
(211) |
|
— % |
|
(2,794) |
|
(0.1) % |
|
(2,210) |
|
(0.1) % |
|
Other income (expense), net |
(2,563) |
|
(0.2) % |
|
47,927 |
|
3.2 % |
|
(8,713) |
|
(0.2) % |
|
35,763 |
|
0.8 % |
|
Income (loss) before income taxes |
7,555 |
|
0.5 % |
|
119,125 |
|
8.0 % |
|
(124,646) |
|
(3.1) % |
|
266,858 |
|
6.1 % |
|
Income tax expense (benefit) |
6,295 |
|
0.4 % |
|
8,569 |
|
0.6 % |
|
9,308 |
|
0.2 % |
|
41,333 |
|
0.9 % |
|
Income (loss) from equity method investments |
(26) |
|
— % |
|
197 |
|
— % |
|
144 |
|
— % |
|
(51) |
|
— % |
|
Net income (loss) |
$ 1,234 |
|
0.1 % |
|
$ 110,753 |
|
7.5 % |
|
|
|
(3.4) % |
|
$ 225,474 |
|
5.2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share of Class A, B and C common stock |
$ 0.00 |
|
|
|
$ 0.25 |
|
|
|
$ (0.31) |
|
|
|
$ 0.51 |
|
|
|
Diluted net income (loss) per share of Class A, B and C common stock |
$ 0.00 |
|
|
|
$ 0.25 |
|
|
|
$ (0.31) |
|
|
|
$ 0.50 |
|
|
|
Weighted average common shares outstanding Class A, B and C common stock |
|
|
|
|
|
|
|
|
|||||||
|
Basic |
431,744 |
|
|
|
437,314 |
|
|
|
433,212 |
|
|
|
441,893 |
|
|
|
Diluted |
437,297 |
|
|
|
448,435 |
|
|
|
433,212 |
|
|
|
452,208 |
|
|
|
For the Three and Nine Months Ended (Unaudited; in thousands)
NET REVENUES BY SEGMENT |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
in '000s |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
|
$ 843,620 |
|
$ 915,335 |
|
(7.8) % |
|
$ 2,416,225 |
|
$ 2,733,297 |
|
(11.6) % |
|
EMEA |
297,890 |
|
284,049 |
|
4.9 % |
|
807,960 |
|
797,781 |
|
1.3 % |
|
|
201,112 |
|
212,018 |
|
(5.1) % |
|
590,609 |
|
646,315 |
|
(8.6) % |
|
|
58,990 |
|
69,832 |
|
(15.5) % |
|
170,340 |
|
179,240 |
|
(5.0) % |
|
Corporate Other (1) |
(573) |
|
4,809 |
|
(111.9) % |
|
(1,407) |
|
13,049 |
|
(110.8) % |
|
Total net revenues |
$ 1,401,039 |
|
$ 1,486,043 |
|
(5.7) % |
|
$ 3,983,727 |
|
$ 4,369,682 |
|
(8.8) % |
|
|
|||||||||||
|
NET REVENUES BY DISTRIBUTION CHANNEL |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
in '000s |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Wholesale |
$ 704,760 |
|
$ 711,699 |
|
(1.0) % |
|
$ 2,211,266 |
|
$ 2,393,382 |
|
(7.6) % |
|
Direct-to-consumer |
672,948 |
|
740,466 |
|
(9.1) % |
|
1,703,497 |
|
1,880,464 |
|
(9.4) % |
|
|
1,377,708 |
|
1,452,165 |
|
(5.1) % |
|
3,914,763 |
|
4,273,846 |
|
(8.4) % |
|
License revenues |
23,904 |
|
29,069 |
|
(17.8) % |
|
70,371 |
|
82,787 |
|
(15.0) % |
|
Corporate Other (1) |
(573) |
|
4,809 |
|
(111.9) % |
|
(1,407) |
|
13,049 |
|
(110.8) % |
|
Total net revenues |
$ 1,401,039 |
|
$ 1,486,043 |
|
(5.7) % |
|
$ 3,983,727 |
|
$ 4,369,682 |
|
(8.8) % |
|
|
|||||||||||
|
NET REVENUES BY PRODUCT CATEGORY |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
in '000s |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Apparel |
$ 966,068 |
|
$ 1,016,655 |
|
(5.0) % |
|
$ 2,671,048 |
|
$ 2,911,669 |
|
(8.3) % |
|
Footwear |
301,208 |
|
331,000 |
|
(9.0) % |
|
924,357 |
|
1,045,872 |
|
(11.6) % |
|
Accessories |
110,432 |
|
104,510 |
|
5.7 % |
|
319,358 |
|
316,305 |
|
1.0 % |
|
|
1,377,708 |
|
1,452,165 |
|
(5.1) % |
|
3,914,763 |
|
4,273,846 |
|
(8.4) % |
|
Licensing revenues |
23,904 |
|
29,069 |
|
(17.8) % |
|
70,371 |
|
82,787 |
|
(15.0) % |
|
Corporate Other (1) |
(573) |
|
4,809 |
|
(111.9) % |
|
(1,407) |
|
13,049 |
|
(110.8) % |
|
Total net revenues |
$ 1,401,039 |
|
$ 1,486,043 |
|
(5.7) % |
|
$ 3,983,727 |
|
$ 4,369,682 |
|
(8.8) % |
|
|
|
(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 its central foreign exchange risk management program. |
|
For the Three and Nine Months Ended (Unaudited; in thousands)
INCOME (LOSS) FROM OPERATIONS BY SEGMENT |
|||||||||||||||
|
|
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
in '000s |
2024 |
|
% of Net |
|
2023 |
|
% of Net |
|
2024 |
|
% of Net |
|
2023 |
|
% of Net |
|
|
$ 164,068 |
|
19.4 % |
|
$ 166,256 |
|
18.2 % |
|
$ 529,216 |
|
21.9 % |
|
$ 538,041 |
|
19.7 % |
|
EMEA |
42,110 |
|
14.1 % |
|
49,133 |
|
17.3 % |
|
114,161 |
|
14.1 % |
|
117,738 |
|
14.8 % |
|
|
14,009 |
|
7.0 % |
|
16,014 |
|
7.6 % |
|
58,158 |
|
9.8 % |
|
86,020 |
|
13.3 % |
|
|
14,186 |
|
24.0 % |
|
13,367 |
|
19.1 % |
|
41,528 |
|
24.4 % |
|
32,759 |
|
18.3 % |
|
Corporate Other (2) |
(220,864) |
|
NM |
|
(173,361) |
|
NM |
|
(856,202) |
|
NM |
|
(541,253) |
|
NM |
|
Income (loss) from operations |
$ 13,509 |
|
1.0 % |
|
$ 71,409 |
|
4.8 % |
|
|
|
(2.8) % |
|
$ 233,305 |
|
5.3 % |
|
|
|
(1) 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). |
|
(2) 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 its central foreign exchange risk management program. Corporate Other also includes expenses related to the company's central supporting functions. |
|
As of (Unaudited; in thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||
|
|
||||
|
in '000s |
|
|
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ 726,877 |
|
$ 858,691 |
|
Accounts receivable, net |
|
615,467 |
|
757,339 |
|
Inventories |
|
1,100,530 |
|
958,495 |
|
Prepaid expenses and other current assets, net |
|
248,119 |
|
289,157 |
|
Total current assets |
|
2,690,993 |
|
2,863,682 |
|
Property and equipment, net |
|
650,644 |
|
664,503 |
|
Operating lease right-of-use assets |
|
391,767 |
|
434,699 |
|
|
|
484,546 |
|
478,302 |
|
Intangible assets, net |
|
5,532 |
|
7,000 |
|
Deferred income taxes |
|
244,081 |
|
221,033 |
|
Other long-term assets |
|
163,402 |
|
91,515 |
|
Total assets |
|
$ 4,630,965 |
|
$ 4,760,734 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current maturities of long-term debt |
|
$ — |
|
$ 80,919 |
|
Accounts payable |
|
657,152 |
|
483,731 |
|
Accrued expenses |
|
322,555 |
|
287,853 |
|
Customer refund liabilities |
|
170,344 |
|
139,283 |
|
Operating lease liabilities |
|
127,930 |
|
139,331 |
|
Other current liabilities |
|
63,035 |
|
34,344 |
|
Total current liabilities |
|
1,341,016 |
|
1,165,461 |
|
Long-term debt, net of current maturities |
|
595,188 |
|
594,873 |
|
Operating lease liabilities, non-current |
|
582,020 |
|
627,665 |
|
Other long-term liabilities |
|
128,018 |
|
219,449 |
|
Total liabilities |
|
2,646,242 |
|
2,607,448 |
|
Total stockholders' equity |
|
1,984,723 |
|
2,153,286 |
|
Total liabilities and stockholders' equity |
|
$ 4,630,965 |
|
$ 4,760,734 |
|
For the Nine Months Ended (Unaudited; in thousands)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
|
|
|||
|
|
Nine Months Ended |
||
|
|
2024 |
|
2023 |
|
Cash flows from operating activities |
|
|
|
|
Net income (loss) |
$ (133,810) |
|
$ 225,474 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
|
Depreciation and amortization |
96,786 |
|
102,113 |
|
Unrealized foreign currency exchange rate (gain) loss |
8,072 |
|
(904) |
|
Loss on disposal of property and equipment |
4,039 |
|
746 |
|
Non-cash restructuring and impairment charges |
38,575 |
|
— |
|
Amortization of bond premium and debt issuance costs |
1,703 |
|
1,565 |
|
Stock-based compensation |
40,794 |
|
33,163 |
|
Deferred income taxes |
(8,784) |
|
(24,430) |
|
Changes in reserves and allowances |
10,480 |
|
25,085 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
136,658 |
|
58,044 |
|
Inventories |
(149,362) |
|
72,578 |
|
Prepaid expenses and other assets |
2,988 |
|
(56,261) |
|
Other non-current assets |
(39,662) |
|
37,494 |
|
Accounts payable |
172,504 |
|
32,100 |
|
Accrued expenses and other liabilities |
(65,207) |
|
(38,737) |
|
Customer refund liabilities |
30,838 |
|
80 |
|
Income taxes payable and receivable |
(3,732) |
|
8,753 |
|
Net cash provided by (used in) operating activities |
142,880 |
|
476,863 |
|
Cash flows from investing activities |
|
|
|
|
Purchases of property and equipment |
(139,860) |
|
(116,541) |
|
Sale of MyFitnessPal platform |
50,000 |
|
45,000 |
|
Sale of MapMyFitness platform |
8,000 |
|
— |
|
Purchase of |
(9,788) |
|
— |
|
Purchase of equity method investment in ISC Sport |
(7,546) |
|
— |
|
Net cash provided by (used in) investing activities |
(99,194) |
|
(71,541) |
|
Cash flows from financing activities |
|
|
|
|
Common shares repurchased |
(65,000) |
|
(75,000) |
|
Repayment of long-term debt |
(80,919) |
|
— |
|
Employee taxes paid for shares withheld for income taxes |
(9,000) |
|
(2,428) |
|
Proceeds from exercise of stock options and other stock issuances |
1,852 |
|
2,443 |
|
Payments of debt financing costs |
(1,388) |
|
— |
|
Net cash provided by (used in) financing activities |
(154,455) |
|
(74,985) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(20,982) |
|
136 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
(131,751) |
|
330,473 |
|
Cash, cash equivalents and restricted cash |
|
|
|
|
Beginning of period |
876,917 |
|
726,745 |
|
End of period |
$ 745,166 |
|
$ 1,057,218 |
|
The table below presents the reconciliation of net revenue growth (decline) calculated according to GAAP to currency-neutral net revenue, a non-GAAP measure. |
|||
|
|
|||
|
CURRENCY-NEUTRAL NET REVENUE GROWTH (DECLINE) RECONCILIATION |
|||
|
|
|||
|
|
Three Months Ended |
|
Nine Months Ended |
|
Total Net Revenue |
|
|
|
|
Net revenue growth - GAAP |
(5.7) % |
|
(8.8) % |
|
Foreign exchange impact |
(0.2) % |
|
0.1 % |
|
Currency neutral net revenue growth - Non-GAAP |
(5.9) % |
|
(8.7) % |
|
|
|
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
(7.8) % |
|
(11.6) % |
|
Foreign exchange impact |
0.1 % |
|
0.1 % |
|
Currency neutral net revenue growth - Non-GAAP |
(7.7) % |
|
(11.5) % |
|
|
|
|
|
|
EMEA |
|
|
|
|
Net revenue growth - GAAP |
4.9 % |
|
1.3 % |
|
Foreign exchange impact |
(2.3) % |
|
(1.0) % |
|
Currency neutral net revenue growth - Non-GAAP |
2.6 % |
|
0.3 % |
|
|
|
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
(5.1) % |
|
(8.6) % |
|
Foreign exchange impact |
(1.2) % |
|
0.5 % |
|
Currency neutral net revenue growth - Non-GAAP |
(6.3) % |
|
(8.1) % |
|
|
|
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
(15.5) % |
|
(5.0) % |
|
Foreign exchange impact |
7.0 % |
|
4.2 % |
|
Currency neutral net revenue growth - Non-GAAP |
(8.5) % |
|
(0.8) % |
|
|
|
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
(1.4) % |
|
(3.4) % |
|
Foreign exchange impact |
(0.7) % |
|
0.3 % |
|
Currency neutral net revenue growth - Non-GAAP |
(2.1) % |
|
(3.1) % |
|
|
|||
|
|
|||
|
ADJUSTED SELLING GENERAL AND ADMINISTRATIVE EXPENSES |
|||
|
|
|||
|
in '000s |
Three months ended |
|
Nine months ended |
|
GAAP selling, general and administrative expenses |
$ 637,701 |
|
$ 1,994,858 |
|
Add: Impact of litigation settlement |
— |
|
(261,046) |
|
Add: Impact of restructuring-related transformational expenses |
(3,819) |
|
(15,200) |
|
Add: Impact of other impairment charges |
(28,360) |
|
(28,360) |
|
Adjusted selling, general and administrative expenses |
$ 605,522 |
|
$ 1,690,252 |
|
|
|||
|
ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION |
|||
|
|
|||
|
in '000s |
Three months ended |
|
Nine months ended |
|
GAAP income (loss) from operations |
$ 13,509 |
|
$ (113,139) |
|
Add: Impact of litigation settlement |
— |
|
261,046 |
|
Add: Impact of restructuring charges |
13,945 |
|
42,243 |
|
Add: Impact of restructuring-related transformational expenses |
3,819 |
|
15,200 |
|
Add: Impact of other impairment charges |
28,360 |
|
28,360 |
|
Adjusted income from operations |
$ 59,633 |
|
$ 233,710 |
|
|
|||
|
ADJUSTED NET INCOME (LOSS) RECONCILIATION |
|||
|
|
|||
|
in '000s |
Three months ended |
|
Nine months ended |
|
GAAP net income (loss) |
$ 1,234 |
|
$ (133,810) |
|
Add: Impact of litigation settlement |
— |
|
261,046 |
|
Add: Impact of restructuring charges |
13,945 |
|
42,243 |
|
Add: Impact of restructuring-related transformational expenses |
3,819 |
|
15,200 |
|
Add: Impact of other impairment charges |
28,360 |
|
28,360 |
|
Add: Impact of provision for income taxes |
(12,361) |
|
(43,272) |
|
Adjusted net income |
$ 34,997 |
|
$ 169,767 |
|
|
|||
|
|
|||
|
ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION |
|||
|
|
|||
|
|
Three months ended |
|
Nine months ended |
|
GAAP diluted net income (loss) per share |
$ 0.00 |
|
$ (0.31) |
|
Add: Impact of litigation settlement |
— |
|
0.60 |
|
Add: Impact of restructuring charges |
0.03 |
|
0.10 |
|
Add: Impact of restructuring-related transformational expenses |
0.01 |
|
0.04 |
|
Add: Impact of other impairment charges |
0.06 |
|
0.06 |
|
Add: Impact of provision for income taxes |
(0.02) |
|
(0.10) |
|
Adjusted diluted net income per share |
$ 0.08 |
|
$ 0.39 |
|
|
||||
|
|
||||
|
ADJUSTED OPERATING INCOME RECONCILIATION |
||||
|
|
||||
|
(in millions) |
|
Year Ending |
||
|
|
|
Low end of estimate |
|
High end of estimate |
|
GAAP loss from operations |
|
$ (189) |
|
$ (179) |
|
Add: Impact of litigation settlement |
|
261 |
|
261 |
|
Add: Impact of charges under 2025 restructuring plan (1) |
|
85 |
|
85 |
|
Add: Impact of other impairment charges |
|
$ 28 |
|
$ 28 |
|
Adjusted income from operations |
|
$ 185 |
|
$ 195 |
|
|
||||
|
ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION |
||||
|
|
||||
|
|
|
Year Ending |
||
|
|
|
Low end of estimate |
|
High end of estimate |
|
GAAP diluted net loss per share |
|
$ (0.50) |
|
$ (0.48) |
|
Add: Impact of litigation settlement |
|
0.60 |
|
0.60 |
|
Add: Impact of charges under 2025 restructuring plan (1) |
|
0.19 |
|
0.19 |
|
Add: Impact of other impairment charges |
|
0.07 |
|
0.07 |
|
Add: Impact of provision for income taxes |
|
(0.08) |
|
(0.08) |
|
Adjusted diluted net income per share |
|
$ 0.28 |
|
$ 0.30 |
|
|
|
(1)
The estimated fiscal 2025 impact of the restructuring plan presented above assumes the midpoint of the Company's estimated range of fiscal 2025 restructuring and related charges under the total plan of |
|
As of
COMPANY-OWNED & OPERATED DOOR COUNT |
||||
|
|
||||
|
|
|
|
||
|
|
|
2024 |
|
2023 |
|
Factory House |
|
180 |
|
183 |
|
Brand House |
|
16 |
|
17 |
|
|
|
196 |
|
200 |
|
|
|
|
|
|
|
Factory House |
|
180 |
|
173 |
|
Brand House |
|
72 |
|
67 |
|
International total doors |
|
252 |
|
240 |
|
|
|
|
|
|
|
Factory House |
|
360 |
|
356 |
|
Brand House |
|
88 |
|
84 |
|
Total doors |
|
448 |
|
440 |
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