=Under Armour (UAA) reported earnings on Tue 31 Jan 2017 (b/o)

Under Armour misses by $0.02, misses on revs; guides FY17 revs below consensus; CFO leaving :

• Reports Q4 (Dec) earnings of $0.23 per share, $0.02 worse than the Capital IQ Consensus of $0.25; revenues rose 11.7% year/year to $1.31 bln vs the $1.41 bln Capital IQ Consensus.
  • North American revenues grew 6 percent.
  • International revenues, which represented 16 percent of total revenues in the quarter, were up 55 percent driven by significant growth in the U.K., Germany, China and Australia.
  • Apparel revenues increased 7 percent to $929 million including strength in golf and basketball.
  • Footwear revenues increased 36 percent to $228 million driven by accelerated growth in running and basketball.
  • Accessories revenues increased 7 percent to $104 million with strength in bags and headwear.
  • Gross margin was 44.8 percent compared with 48 percent in the prior year's period, as benefits from more favorable product costs were offset by aggressive efforts to manage inventory, changes in foreign currency and the outperformance of footwear and international businesses in the overall mix.
  • Inventory increased 17 percent to $917 million. 
  • Total debt increased 22 percent to $817 million.
• Co issues downside guidance for FY17, sees FY17 revs of +11-12% approx $5.4 bln vs. $6.06 bln Capital IQ Consensus Estimate.
  • Gross margin is expected to be slightly down y/y.
  • Tempered top line results coupled with strategic investments in the company's fastest growing businesses are expected to cause a decline in operating income to approximately $320 million.
  • Other full year assumptions include interest expense of approximately $40 million and an effective tax rate of 32 to 34 percent.
• CFO Departure
• The Company's Chief Financial Officer, Chip Molloy, has decided to leave the company due to personal reasons. Effective February 3, David Bergman, Senior Vice President, Corporate Finance will serve as acting CFO. Mr. Molloy will remain with the company in an advisory capacity to assist with the transition.