Monday, 15 Aug 2022

Under Armour Posts Strong 2Q Results, Raises Outlook

Under Armour Inc. continued its rebound in the second quarter as North American sales recovered and the international business continued to perform.

On Tuesday morning, the company reported that adjusted operating income was $124 million and adjusted net income was $110 million in the period ended June 30.

Overall revenue was up 91 percent to $1.4 billion with wholesale sales up 157 percent to $768 million and direct-to-consumer revenue up 52 percent to $561 million. Interestingly, the DTC number was driven by strong growth in owned and operated stores while e-commerce sales, which represented 39 percent of the company’s overall DTC sales, declined 18 percent.

Sales in North America increased 101 percent to $905 million and international revenue increased 100 percent to $446 million, driven by a 133 percent jump in the EMEA, a 56 percent increase in Asia-Pacific and a sizable 317 percent gain in Latin America.

Apparel revenue increased 105 percent to $874 million, footwear revenue increased 85 percent to $343 million and accessories revenue increased 99 percent to $112 million.

The solid results prompted the Baltimore-based sports brand to once again raise its outlook for the year, a move it made in May after first quarter results were released. Revenue is now expected to be up at a low twenties percentage rate compared to the previous expectation of a high-teens percentage rate with a low twenties percentage growth rate expected in North America and a mid-thirties percentage growth rate internationally, the company said.

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Operating income is expected to reach $215 million to $225 million compared to the previous range of $105 million to $115 million and adjusted operating income is expected to reach $340 million to $350 million compared to the previous expectation of $230 million to $240 million.

“We are very pleased with Under Armour’s better than expected second-quarter results, which reflect solid progress compared to both 2020 and 2019. Given the continued momentum, we’re raising our full-year outlook, which puts us on track to achieving a solid performance in 2021,” said Under Armour president and chief executive officer Patrik Frisk. “With the critical mass of our transformation behind us and the continued improvements across product, marketing, and our financial results, I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth.”

Frisk added: “At the halfway point of our fiscal year, I’m confident in our ability to execute our strategy by putting focused performers at the center of everything we do and increasing our capacity to drive consistent, profitable growth for our shareholders over the long-term.”


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