Under Armour (NYSE:UAA) reported its fourth-quarter earnings, surpassing analyst expectations for adjusted earnings per share (EPS) but providing a disappointin

Under Armour Beats Q4, But Revenue Guidance Disappoints

- (Last modified: May 17, 2024 2:25 AM)

blog post cover photo

Image credit: FMP

Under Armour (NYSE:UAA) reported its fourth-quarter earnings, surpassing analyst expectations for adjusted earnings per share (EPS) but providing a disappointing revenue outlook.

The company reported an adjusted EPS of $0.11 for the quarter, exceeding the Street estimate of $0.08. Revenue remained flat at $1.33 billion, matching analyst projections but representing a 5% decline from the same period last year.

The revenue decline was largely due to a 10% decrease in North American sales, which CEO Kevin Plank attributed to a challenging retail environment with high inventories and ongoing promotions.

Under Armour's gross margin improved by 170 basis points to 45.0%, thanks to supply chain benefits like lower product and freight costs.

Looking forward, Under Armour expects a low-double-digit percentage decline in revenue, with a 15% to 17% drop anticipated in North America. The international business is also projected to see a low-single-digit percentage decrease. These projections are part of Under Armour's efforts to reset its business and reduce promotional activities, particularly in the direct-to-consumer segment, to maintain brand strength.

For fiscal 2025, Under Armour forecasts an adjusted operating income between $130 to $150 million, taking into account anticipated restructuring charges. The expected EPS range is $0.18 to $0.21, significantly below the Street estimate of $0.59.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep