BALTIMORE, May 9, 2023
/PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced
unaudited financial results for its fourth quarter and fiscal year
ended March 31, 2023. 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.
"I'm honored to lead this iconic brand, and I'm pleased that
Under Armour delivered fiscal 2023 revenue and earnings results
that were in line with our previous outlook," said Under Armour
President and CEO Stephanie
Linnartz. "Fiscal 2024 will be a year of building for the
brand. I am prioritizing significantly amplifying global brand
heat; delivering elevated design and products, with a focus on
Sportstyle, footwear, and women; and positioning us to drive better
sales growth in the United
States."
Linnartz continued, "We will leverage our strong portfolio of
franchises, including Heat Gear, Cold Gear, and compression
apparel, to drive innovation across new products and markets. We
must deliver better for athletes and our customers and meaningfully
increase returns for shareholders in the years ahead. My job is to
make that vision a reality."
Fourth Quarter Fiscal 2023 Review
- Revenue was up 8 percent to $1.4
billion (up 10 percent currency neutral).
-
- Wholesale revenue increased 10 percent to $909 million, and direct-to-consumer revenue
increased 3 percent to $454 million
due to a 6 percent increase in eCommerce revenue, which represented
46 percent of the total direct-to-consumer business in the quarter,
and a 1 percent increase in owned and operated store revenue.
- North America revenue
increased 3 percent to $862 million,
and international revenue increased 16 percent to $526 million (up 21 percent currency neutral).
Within the international business, revenue increased 14 percent in
EMEA (up 20 percent currency neutral), increased 24 percent in
Asia-Pacific (up 31 percent
currency neutral), and decreased 8 percent in Latin America (down 13 percent currency
neutral).
- Apparel revenue increased 1 percent to $889 million. Footwear revenue increased 27
percent to $378 million. Accessories
revenue declined 1 percent to $96
million.
- Gross margin declined 310 basis points to 43.4 percent
compared to the prior year, driven primarily by higher promotions,
mix impacts related to higher footwear revenue, and adverse effects
from changes in foreign currency.
- Selling, general & administrative expenses decreased
4 percent to $572 million.
- Operating income was $35
million.
- Net Income was $171
million. Excluding an $87
million benefit primarily from a tax valuation allowance
release related to prior-period restructuring, adjusted net
income was $84 million.
- Diluted earnings per share was $0.38. Adjusted diluted earnings per share
was $0.18.
- Inventory was up 44 percent to $1.2 billion.
- Cash and Cash Equivalents were $712 million at the end of the quarter, and no
borrowings were outstanding under the company's $1.1 billion revolving credit facility.
Full Year Fiscal 2023 Review
- Revenue was up 3 percent to $5.9
billion (up 6 percent currency neutral).
-
- Wholesale revenue increased 6 percent to $3.5 billion, and direct-to-consumer revenue
decreased 3 percent to $2.3 billion
due to a 6 percent decline in owned and operated store revenue
partially offset by a 3 percent increase in eCommerce revenue,
which represented 42 percent of the total direct-to-consumer
business for the year.
- North America revenue
decreased 1 percent compared to the prior year at $3.8 billion, and international revenue increased
8 percent to $2 billion (up 16
percent currency neutral). Within the international business,
revenue increased 13 percent in EMEA (up 23 percent currency
neutral), increased 3 percent in Asia-Pacific (up 10 percent currency neutral),
and increased 11 percent in Latin
America (up 9 percent currency neutral).
- Apparel revenue decreased 1 percent to $3.9 billion. Footwear revenue increased 16
percent to $1.5 billion. Accessories
revenue declined 7 percent to $409
million.
- Gross margin declined 470 basis points to 44.9 percent
compared to the prior year, driven primarily by higher promotions,
supply chain impacts including higher freight and product costs,
mix impacts related to higher distributor and footwear revenue, and
adverse impacts from changes in foreign currency.
- Selling, general & administrative expenses decreased
2 percent to $2.4 billion.
- Operating income was $284
million. Excluding the company's litigation reserve,
adjusted operating income was $304
million.
- Net Income was $387
million. Excluding a $45
million earn-out benefit in connection with the sale of the
MyFitnessPal platform, a $96 million
benefit from a tax valuation allowance release related to
prior-period restructuring, and a $20
million litigation reserve expense, adjusted net
income was $266 million.
- Diluted earnings per share was $0.84. Adjusted diluted earnings per share
was $0.58.
Share Buyback Update
During the fourth quarter, Under Armour repurchased one million
shares of its Class C common stock, consistent with the final
settlement of accelerated share repurchase transactions entered
into during the prior quarter. Under the company's two-year,
$500 million program, which the Board
of Directors approved in February
2022, 35 million shares of Class C common stock have been
repurchased for $425 million.
Fiscal 2024 Outlook
Versus fiscal 2023, key points related to Under Armour's fiscal
year 2024 outlook include:
- Revenue is expected to be flat to up slightly.
- Gross margin is expected to be up 25 to 75 basis points
compared to the prior year's rate of 44.9 percent, driven by supply
chain tailwinds related to lower freight costs, partially offset by
mix impacts related to higher off-price revenue and higher
promotions expected in the company's direct-to-consumer
business.
- Selling, general & administrative expenses are
expected to be flat to up slightly.
- Operating income is expected to reach $310 to $330
million.
- Effective tax rate is expected to be in the low twenties
percentage range.
- Diluted earnings per share is expected to be between
$0.47 and $0.51.
- Capital expenditures are expected to be between
$250 and $270
million.
Conference Call and Webcast
Under Armour will hold its fourth quarter and full-year
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 for the company's 2023 fiscal year ended 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 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 ended 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 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
conflict; 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 and
realize expected benefits from restructuring plans; 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 Months and Year Ended March
31, 2023, and 2022
(Unaudited; in thousands, except per share
amounts)
|
|
CONSOLIDATED
STATEMENTS OF OPERATION
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
in '000s
|
2023
|
|
% of Net
Revenues
|
|
2022
|
|
% of Net
Revenues
|
|
2023
|
|
% of Net
Revenues
|
|
2022
|
|
% of Net
Revenues
|
Net revenues
|
$
1,398,913
|
|
100.0 %
|
|
$
1,300,945
|
|
100.0 %
|
|
$
5,903,636
|
|
100.0 %
|
|
$
5,727,216
|
|
100.0 %
|
Cost of goods
sold
|
792,009
|
|
56.6 %
|
|
695,781
|
|
53.5 %
|
|
3,254,296
|
|
55.1 %
|
|
2,889,194
|
|
50.4 %
|
Gross
profit
|
606,904
|
|
43.4 %
|
|
605,164
|
|
46.5 %
|
|
2,649,340
|
|
44.9 %
|
|
2,838,022
|
|
49.6 %
|
Selling, general and
administrative expenses
|
571,645
|
|
40.9 %
|
|
594,446
|
|
45.7 %
|
|
2,365,529
|
|
40.1 %
|
|
2,414,499
|
|
42.2 %
|
Restructuring and
impairment charges
|
—
|
|
— %
|
|
56,674
|
|
4.4 %
|
|
—
|
|
— %
|
|
90,079
|
|
1.6 %
|
Income (loss) from
operations
|
35,259
|
|
2.5 %
|
|
(45,956)
|
|
(3.5) %
|
|
283,811
|
|
4.8 %
|
|
333,444
|
|
5.8 %
|
Interest income
(expense), net
|
(1,651)
|
|
(0.1) %
|
|
(6,154)
|
|
(0.5) %
|
|
(12,826)
|
|
(0.2) %
|
|
(36,317)
|
|
(0.6) %
|
Other income (expense),
net
|
(10,520)
|
|
(0.8) %
|
|
(51)
|
|
— %
|
|
16,780
|
|
0.3 %
|
|
(43,984)
|
|
(0.8) %
|
Income (loss) before
income taxes
|
23,088
|
|
1.7 %
|
|
(52,161)
|
|
(4.0) %
|
|
287,765
|
|
4.9 %
|
|
253,143
|
|
4.4 %
|
Income tax expense
(benefit)
|
(147,765)
|
|
(10.6) %
|
|
8,181
|
|
0.6 %
|
|
(101,046)
|
|
(1.7) %
|
|
30,372
|
|
0.5 %
|
Income (loss) from
equity method investments
|
(308)
|
|
— %
|
|
732
|
|
0.1 %
|
|
(2,042)
|
|
— %
|
|
(73)
|
|
— %
|
Net income
(loss)
|
$ 170,545
|
|
12.2 %
|
|
$ (59,610)
|
|
(4.6) %
|
|
$ 386,769
|
|
6.6 %
|
|
$ 222,698
|
|
3.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per share of Class A, B
and C common stock
|
$
0.38
|
|
|
|
$
(0.13)
|
|
|
|
$
0.86
|
|
|
|
$
0.47
|
|
|
Diluted net income
(loss) per share of Class A, B
and C common stock
|
$
0.38
|
|
|
|
$
(0.13)
|
|
|
|
$
0.84
|
|
|
|
$
0.47
|
|
|
Weighted average
common shares outstanding Class A, B and C common
stock
|
Basic
|
444,052
|
|
|
|
471,425
|
|
|
|
451,426
|
|
|
|
469,317
|
|
|
Diluted
|
454,652
|
|
|
|
471,425
|
|
|
|
461,509
|
|
|
|
472,457
|
|
|
Under Armour,
Inc.
For the Three Months and Year Ended March
31, 2023, and 2022
(Unaudited; in
thousands)
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
in '000s
|
2023
|
|
2022
|
|
% Change
|
|
2023
|
|
2022
|
|
% Change
|
Apparel
|
$
889,228
|
|
$
876,604
|
|
1.4 %
|
|
$
3,871,638
|
|
$
3,907,812
|
|
(0.9) %
|
Footwear
|
377,740
|
|
296,696
|
|
27.3 %
|
|
1,455,265
|
|
1,251,776
|
|
16.3 %
|
Accessories
|
95,698
|
|
96,803
|
|
(1.1) %
|
|
408,521
|
|
441,301
|
|
(7.4) %
|
Net
Sales
|
1,362,666
|
|
1,270,103
|
|
7.3 %
|
|
5,735,424
|
|
5,600,889
|
|
2.4 %
|
Licensing
revenues
|
25,754
|
|
26,602
|
|
(3.2) %
|
|
116,746
|
|
117,568
|
|
(0.7) %
|
Corporate Other
(1)
|
10,493
|
|
4,240
|
|
NM
|
|
51,466
|
|
8,759
|
|
NM
|
Total net
revenues
|
$
1,398,913
|
|
$
1,300,945
|
|
7.5 %
|
|
$
5,903,636
|
|
$
5,727,216
|
|
3.1 %
|
|
NET REVENUES BY
DISTRIBUTION CHANNEL
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
in '000s
|
2023
|
|
2022
|
|
% Change
|
|
2023
|
|
2022
|
|
% Change
|
Wholesale
|
$
908,505
|
|
$
829,179
|
|
9.6 %
|
|
$
3,468,126
|
|
$
3,275,341
|
|
5.9 %
|
Direct-to-consumer
|
454,161
|
|
440,924
|
|
3.0 %
|
|
2,267,298
|
|
2,325,548
|
|
(2.5) %
|
Net
Sales
|
1,362,666
|
|
1,270,103
|
|
7.3 %
|
|
5,735,424
|
|
5,600,889
|
|
2.4 %
|
License
revenues
|
25,754
|
|
26,602
|
|
(3.2) %
|
|
116,746
|
|
117,568
|
|
(0.7) %
|
Corporate Other
(1)
|
10,493
|
|
4,240
|
|
NM
|
|
51,466
|
|
8,759
|
|
NM
|
Total net
revenues
|
$
1,398,913
|
|
$
1,300,945
|
|
7.5 %
|
|
$
5,903,636
|
|
$
5,727,216
|
|
3.1 %
|
|
NET REVENUES BY
SEGMENT
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
in '000s
|
2023
|
|
2022
|
|
% Change
|
|
2023
|
|
2022
|
|
% Change
|
North
America
|
$
862,177
|
|
$
841,101
|
|
2.5 %
|
|
$
3,820,993
|
|
$
3,845,746
|
|
(0.6) %
|
EMEA
|
259,514
|
|
228,056
|
|
13.8 %
|
|
992,624
|
|
876,684
|
|
13.2 %
|
Asia-Pacific
|
224,923
|
|
181,908
|
|
23.6 %
|
|
825,338
|
|
803,450
|
|
2.7 %
|
Latin
America
|
41,806
|
|
45,640
|
|
(8.4) %
|
|
213,215
|
|
192,577
|
|
10.7 %
|
Corporate Other
(1)
|
10,493
|
|
4,240
|
|
NM
|
|
51,466
|
|
8,759
|
|
NM
|
Total net
revenues
|
$
1,398,913
|
|
$
1,300,945
|
|
7.5 %
|
|
$
5,903,636
|
|
$
5,727,216
|
|
3.1 %
|
Under Armour,
Inc.
For the Three Months and Year Ended March
31, 2023, and 2022
(Unaudited; in
thousands)
|
|
INCOME (LOSS) FROM
OPERATIONS BY SEGMENT
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
in '000s
|
2023
|
% of Net
Revenues (2)
|
|
2022
|
% of Net
Revenues (2)
|
|
2023
|
% of Net
Revenues (2)
|
|
2022
|
% of Net
Revenues (2)
|
North
America
|
$
136,832
|
15.9 %
|
|
$
154,084
|
18.3 %
|
|
$
734,881
|
19.2 %
|
|
$
915,615
|
23.8 %
|
EMEA
|
27,138
|
10.5 %
|
|
30,336
|
13.3 %
|
|
112,161
|
11.3 %
|
|
136,252
|
15.5 %
|
Asia-Pacific
|
23,386
|
10.4 %
|
|
5,464
|
3.0 %
|
|
100,276
|
12.1 %
|
|
91,862
|
11.4 %
|
Latin
America
|
4,271
|
10.2 %
|
|
6,343
|
13.9 %
|
|
23,487
|
11.0 %
|
|
27,274
|
14.2 %
|
Corporate Other
(1)
|
(156,368)
|
NM
|
|
(242,183)
|
NM
|
|
(686,994)
|
NM
|
|
(837,559)
|
NM
|
Income (loss) from
operations
|
$ 35,259
|
2.5 %
|
|
$
(45,956)
|
(3.5) %
|
|
$
283,811
|
4.8 %
|
|
$
333,444
|
5.8 %
|
|
|
(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 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 March 31, 2023, and March 31, 2022
(Unaudited; in thousands)
|
|
CONSOLIDATED BALANCE
SHEETS
|
in '000s
|
|
March 31,
2023
|
|
March 31,
2022
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
711,910
|
|
$
1,009,139
|
Accounts receivable,
net
|
|
759,860
|
|
702,197
|
Inventories
|
|
1,190,253
|
|
824,455
|
Prepaid expenses and
other current assets, net
|
|
297,563
|
|
297,034
|
Total current
assets
|
|
2,959,586
|
|
2,832,825
|
Property and equipment,
net
|
|
672,736
|
|
601,365
|
Operating lease
right-of-use assets
|
|
489,306
|
|
420,397
|
Goodwill
|
|
481,992
|
|
491,508
|
Intangible assets,
net
|
|
8,940
|
|
10,580
|
Deferred income
taxes
|
|
186,167
|
|
20,141
|
Other long-term
assets
|
|
58,356
|
|
76,016
|
Total
assets
|
|
$
4,857,083
|
|
$
4,452,832
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Accounts
payable
|
|
649,116
|
|
560,331
|
Accrued
expenses
|
|
354,643
|
|
317,963
|
Customer refund
liabilities
|
|
160,533
|
|
159,628
|
Operating lease
liabilities
|
|
140,990
|
|
134,833
|
Other current
liabilities
|
|
51,609
|
|
125,840
|
Total current
liabilities
|
|
1,356,891
|
|
1,298,595
|
Long-term debt, net of
current maturities
|
|
674,478
|
|
672,286
|
Operating lease
liabilities, non-current
|
|
705,713
|
|
668,983
|
Other long-term
liabilities
|
|
121,598
|
|
84,014
|
Total
liabilities
|
|
2,858,680
|
|
2,723,878
|
Total stockholders'
equity
|
|
1,998,403
|
|
1,728,954
|
Total liabilities
and stockholders' equity
|
|
$
4,857,083
|
|
$
4,452,832
|
Under Armour,
Inc.
For the Year Ended March 31, 2023 and
2022
(Unaudited; in thousands)
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Year Ended March
31,
|
in '000s
|
2023
|
|
2022
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
386,769
|
|
$
222,698
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities
|
|
|
|
Depreciation and
amortization
|
137,620
|
|
140,592
|
Unrealized foreign
currency exchange rate (gain) loss
|
(8,463)
|
|
(4,410)
|
Loss on extinguishment
of senior convertible notes
|
—
|
|
58,526
|
Loss on disposal of
property and equipment
|
2,619
|
|
5,497
|
Non-cash restructuring
and impairment charges
|
1,959
|
|
19,466
|
Amortization of bond
premium and debt issuance costs
|
2,192
|
|
12,167
|
Stock-based
compensation
|
36,811
|
|
45,186
|
Deferred income
taxes
|
(152,403)
|
|
(5,133)
|
Changes in reserves
and allowances
|
11,696
|
|
(21,754)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(62,162)
|
|
7,352
|
Inventories
|
(373,714)
|
|
37,616
|
Prepaid expenses and
other assets
|
(36,652)
|
|
(16,397)
|
Other non-current
assets
|
(52,795)
|
|
87,943
|
Accounts
payable
|
77,558
|
|
51,149
|
Accrued expenses and
other liabilities
|
12,081
|
|
(115,542)
|
Customer refund
liabilities
|
851
|
|
(32,310)
|
Income taxes payable
and receivable
|
6,119
|
|
1,328
|
Net cash provided by
(used in) operating activities
|
(9,914)
|
|
493,974
|
Cash flows from
investing activities
|
|
|
|
Purchases of property
and equipment
|
(187,796)
|
|
(101,217)
|
Sale of property and
equipment
|
—
|
|
852
|
Earn-out from the sale
of the MyFitnessPal platform
|
35,000
|
|
—
|
Net cash used in
investing activities
|
(152,796)
|
|
(100,365)
|
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)
|
|
(300,000)
|
Employee taxes paid for
shares withheld for income taxes
|
(5,151)
|
|
(13,128)
|
Proceeds from exercise
of stock options and other stock issuances
|
3,776
|
|
3,764
|
Payments of debt
financing costs
|
—
|
|
(1,884)
|
Net cash provided by
(used in) financing activities
|
(126,375)
|
|
(725,806)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(5,315)
|
|
(5,357)
|
Net increase in
(decrease in) cash, cash equivalents and restricted cash
|
(294,400)
|
|
(337,554)
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Beginning of
period
|
1,022,126
|
|
1,359,680
|
End of
period
|
$
727,726
|
|
$
1,022,126
|
Under Armour,
Inc.
For the Three Months and Year Ended March
31, 2023
(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
March 31, 2023
|
|
Year Ended
March 31, 2023
|
Total Net
Revenue
|
|
|
|
Net revenue growth -
GAAP
|
7.5 %
|
|
3.1 %
|
Foreign exchange
impact
|
2.3 %
|
|
2.7 %
|
Currency neutral net
revenue growth - Non-GAAP
|
9.8 %
|
|
5.8 %
|
|
|
|
|
North
America
|
|
|
|
Net revenue growth -
GAAP
|
2.5 %
|
|
(0.6) %
|
Foreign exchange
impact
|
0.6 %
|
|
0.4 %
|
Currency neutral net
revenue growth - Non-GAAP
|
3.1 %
|
|
(0.2) %
|
|
|
|
|
EMEA
|
|
|
|
Net revenue growth -
GAAP
|
13.8 %
|
|
13.2 %
|
Foreign exchange
impact
|
6.1 %
|
|
9.6 %
|
Currency neutral net
revenue growth - Non-GAAP
|
19.9 %
|
|
22.8 %
|
|
|
|
|
Asia-Pacific
|
|
|
|
Net revenue growth -
GAAP
|
23.6 %
|
|
2.7 %
|
Foreign exchange
impact
|
7.4 %
|
|
7.1 %
|
Currency neutral net
revenue growth - Non-GAAP
|
31.0 %
|
|
9.8 %
|
|
|
|
|
Latin
America
|
|
|
|
Net revenue growth -
GAAP
|
(8.4) %
|
|
10.7 %
|
Foreign exchange
impact
|
(4.5) %
|
|
(1.8) %
|
Currency neutral net
revenue growth - Non-GAAP
|
(12.9) %
|
|
8.9 %
|
|
|
|
|
Total
International
|
|
|
|
Net revenue growth -
GAAP
|
15.5 %
|
|
8.5 %
|
Foreign exchange
impact
|
5.6 %
|
|
7.3 %
|
Currency neutral net
revenue growth - Non-GAAP
|
21.1 %
|
|
15.8 %
|
Under Armour,
Inc.
For the Three Months and Year Ended March 31, 2023
(Unaudited; in thousands, except per share
amounts)
|
|
The tables below
present the reconciliation of the Company's 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
March 31, 2023
|
|
Year ended March
31,
2023
|
GAAP income from
operations
|
35,259
|
|
283,811
|
Add: Impact of
litigation reserve
|
—
|
|
20,000
|
Adjusted income from
operations
|
$
35,259
|
|
$
303,811
|
|
ADJUSTED NET INCOME
(LOSS) RECONCILIATION
|
in '000s
|
Three months ended
March 31, 2023
|
|
Year ended March
31,
2023
|
GAAP net
income
|
170,545
|
|
386,769
|
Add: Impact of
litigation reserve
|
—
|
|
20,000
|
Add: Impact of earn-out
recorded in connection with the sale of the
MyFitnessPal platform
|
—
|
|
(45,000)
|
Add: Impact of
commission expense in connection with the sale of the
MyFitnessPal platform
|
—
|
|
1,120
|
Add: Impact of
provision for income taxes
|
(86,754)
|
|
(96,562)
|
Adjusted net
income
|
$
83,791
|
|
$
266,327
|
|
ADJUSTED DILUTED
EARNINGS (LOSS) PER SHARE RECONCILIATION
|
|
Three months ended
March 31, 2023
|
|
Year ended March
31,
2023
|
GAAP diluted net income
per share
|
$
0.38
|
|
$
0.84
|
Add: Impact of
litigation reserve
|
—
|
|
0.04
|
Add: Impact of earn-out
recorded in connection with the sale of the
MyFitnessPal platform
|
—
|
|
(0.09)
|
Add: Impact of
commission expense in connection with the sale of the
MyFitnessPal platform
|
—
|
|
—
|
Add: Impact of
provision for income taxes
|
(0.20)
|
|
(0.21)
|
Adjusted diluted net
income per share
|
$
0.18
|
|
$
0.58
|
Under Armour,
Inc.
As of March 31, 2023, and 2022
|
|
COMPANY-OWNED &
OPERATED DOOR COUNT
|
|
|
March 31,
|
|
|
2023
|
|
2022
|
Factory
House
|
|
176
|
|
179
|
Brand House
|
|
18
|
|
18
|
North
America total doors
|
|
194
|
|
197
|
|
|
|
|
|
Factory
House
|
|
165
|
|
156
|
Brand House
|
|
80
|
|
87
|
International total doors
|
|
245
|
|
243
|
|
|
|
|
|
Factory
House
|
|
341
|
|
335
|
Brand House
|
|
98
|
|
105
|
Total
doors
|
|
439
|
|
440
|
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SOURCE Under Armour, Inc.