Under Armour Inc (UAA) Tops Q1 EPS by 3c, EPS Guidance Misses
Under Armour Inc (NYSE: UAA) reported Q1 EPS of $0.11, $0.03 better than the analyst estimate of $0.08. Revenue for the quarter came in at $1.33 billion versus the consensus estimate of $1.33 billion.
GUIDANCE:
Under Armour Inc sees FY2025 EPS of $0.18-$0.21, versus the consensus of $0.59.
- Revenue is expected to be down at a low-double-digit percentage rate. This includes an expected 15 to 17 percent decline in North America as the company works to meaningfully reset this business following years of heightened promotional activities, particularly in its DTC business and a low-single-digit percent decline in its international business due to more conservative macro consumer trends and actions to protect the brand strength it has built.
- Gross margin is expected to be up 75 to 100 basis points compared to the prior year, driven by a material reduction in promotional and discounting activities in the company's direct-to-consumer business and product costing benefits.
- Selling, general, and administrative expenses are expected to be down 2 to 4 percent.
- Operating income is expected to be $50 to $70 million. Excluding the mid-point of anticipated restructuring charges, adjusted operating income is expected to be $130 to $150 million.
- Diluted earnings per share is expected to be between $0.02 and $0.05. Adjusted diluted earnings per share is expected to be between $0.18 and $0.21.
- Capital expenditures are expected to be between $200 to $220 million.
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