Under Armour (UA) Reports In-Line Q4 EPS, Revenue Beats
(Updated - February 13, 2018 6:59 AM EST)
Under Armour (NYSE: UA) reported Q4 EPS of $0.00, in-line with the analyst estimate of $0.00. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.33 billion.
"After years of rapid growth and building a globally recognized brand, the dynamic landscape of 2017 was a catalyst for us to begin strategically transforming Under Armour into an operationally excellent company," said Under Armour Chairman and CEO Kevin Plank. "A year into this journey, our fourth quarter and full year results demonstrate that the tough decisions we're making are generating the stability necessary to create a more consistent and predictable path to deliver long-term value to our shareholders."
After additional review, the company has announced an additional 2018 restructuring plan identifying further opportunities to optimize operations. In conjunction with this plan, approximately $110 to $130 million of pre-tax restructuring and related charges are expected to be incurred, including:
- Up to $105 million in cash related charges, consisting of up to $55 million in facility and lease terminations and up to $50 million in contract termination and other restructuring charges; and,
- Up to $25 million in non-cash charges comprised of up to $10 million of inventory related charges and up to $15 million of asset related impairments.
GUIDANCE:
Under Armour sees FY2018 EPS of $0.14-$0.19, versus the consensus of $0.22.
- Net revenue is expected to be up at a low single-digit percentage rate reflecting a mid-single-digit decline in North America and international growth of greater than 25 percent.
- Gross margin is expected to increase approximately 50 basis points to 45.5 percent due to benefits from lower planned promotional activity, product costs, channel mix and changes in foreign currency.
- Operating income is expected to reach $20 million to $30 million. Excluding the impact of continued restructuring efforts, adjusted operating income is expected to be $130 to $160 million.
- Interest and other expense net is planned at approximately $45 million.
- Excluding the impact of the restructuring efforts, adjusted diluted earnings per share is expected to be in the range of $0.14 to $0.19; and,
- Capital expenditures are planned at approximately $225 million compared with $275 million in 2017.
For earnings history and earnings-related data on Under Armour (UA) click here.