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Tuesday, July 30, 2019

-=Under Armour (UAA) reported earnings on Tue 30 July 2019 (b/o)

Under Armour beats by $0.01, reports revs in-line; guides FY19 EPS below consensus, reaffirms FY 19 revs outlook

  • Reports Q2 (Jun) loss of $0.04 per share, inclusive of a negative $0.01 impact from the company's minority interest in its Japanese licensee, $0.01 better thanthe S&P Capital IQ Consensus of ($0.05); revenues rose 1.4% year/year to $1.19 bln vs the $1.2 bln S&P Capital IQ Consensus.
    • Gross margin increased 170 basis points to 46.5 percent compared to the prior year driven by supply chain initiatives, regional mix and restructuring charges in the prior period offset by foreign currency impacts.
    • Wholesale revenue decreased 1 percent to $707 million and direct-to-consumer revenue was up 2 percent to $423 million, representing 35 percent of total revenue.
    • North America revenue decreased 3 percent to $816 million and the international business increased 12 percent to $339 million (up 17 percent currency neutral) representing 28 percent of total revenue. Within the international business, revenue was up 6 percent in EMEA (up 11 percent currency neutral), up 23 percent in Asia-Pacific (up 29 percent currency neutral) and down 3 percent in Latin America (up 2 percent currency neutral).
    • Apparel revenue decreased 1 percent to $740 million; footwear revenue increased 5 percent to $284 million; and accessories revenue was unchanged at $106 million.
  • Co issues slightly downside guidance for FY19, sees EPS of $0.33-0.34, inclusive of a negative $0.01 impact from the company's minority interest in its Japanese licensee, vs. $0.35 S&P Capital IQ Consensus.
    • Revenue is expected to be up approximately 3 to 4 percent reflecting a slight decline in North America and a low to mid-teen percentage rate increase in the international business.
    • Gross margin is expected to increase approximately 110 to 130 basis points compared to 2018. Excluding restructuring charges from the comparable prior period, we expect an increase of approximately 70 to 90 basis points compared to 2018 adjusted gross margin due to ongoing supply chain initiatives and channel mix benefits.
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