- Under Armour Inc (NYSE: NYSE:UAA) (NYSE: UA) reported sales growth of 3% year-on-year to $1.30 billion for its transition quarter ended March 31, 2022, missing the consensus of $1.32 billion.
- As announced earlier, following a three-month transition period (January 1 – March 31, 2022), Under Armour's FY23 will run from April 1, 2022, through March 31, 2023. Consequently, there will be no FY22.
- Wholesale revenue increased 4% Y/Y to $829 million, and direct-to-consumer revenue rose 1% to $441 million.
- Apparel revenue grew 8% Y/Y, Footwear declined 4%, while Accessories revenue decreased 18%.
- North America revenue increased 4% to $841 million, and international revenue increased 1% to $456 million. Within the international business, revenue increased 18% in EMEA, decreased 14% in Asia-Pacific, and decreased 6% in Latin America.
- The gross profit fell 3.7% Y/Y to $605.2 million, and the gross margin decreased 350 basis points Y/Y to 46.5%.
- The operating loss for the quarter was $(45.9) million versus an operating income of $106.8 million.
- The company held $1 billion in cash and equivalents as of March 31, 2022.
- Adjusted EPS loss of $(0.01) missed the analyst consensus of $0.06.
- Outlook: Under Armour sees FY23 sales growth of 5% - 7% year over year.
- It expects gross margin to be down 150 - 200 basis points due to expected inflationary pressures on freight and product costs, unfavorable channel mix, and changes in foreign currency.
- The company expects FY23 adjusted EPS of $0.63 - $0.68, versus the consensus of $0.83.
- Price Action: UAA shares are trading lower by 19.5% at $11.50 in premarket on the last check Friday.
- Photo Via Wikimedia Commons
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