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UNDER ARMOUR REPORTS RESULTS FOR TRANSITION QUARTER ENDED MARCH 31, 2022; PROVIDES INITIAL FISCAL 2023 OUTLOOK

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Company Also Announced the Completion of its 2020 Restructuring Plan

BALTIMORE, May 6, 2022 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced unaudited financial results for its transition quarter ended March 31, 2022. The company reports its financial performance in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This press release refers to "currency neutral" and "adjusted" amounts, which are non-GAAP financial measures described below under the "Non-GAAP Financial Information" paragraph.

Under Armour, Inc. Logo. (PRNewsFoto/Under Armour, Inc.)
Under Armour, Inc. Logo. (PRNewsFoto/Under Armour, Inc.)

"Having successfully executed a multi-year transformation and after delivering a record year in 2021 – we are continuing to serve the needs of athletes amid an increasingly more uncertain marketplace," said Under Armour President and CEO Patrik Frisk. "As global supply challenges and emergent COVID-19 impacts in China eventually normalize, we are confident that the strength of the Under Armour brand coupled with our powerful growth strategy positions us well to deliver sustainable, profitable returns to shareholders over the long-term."

Transition Quarter Review

  • Revenue was up 3 percent to $1.3 billion (up 4 percent currency neutral) compared to the prior year.

  • Gross margin decreased 350 basis points to 46.5 percent compared to the prior year, driven primarily by elevated freight expenses.

  • Selling, general & administrative expenses increased 16 percent to $594 million.

  • Restructuring and impairment charges were $57 million.

  • Operating loss was $46 million. Adjusted operating income was $11 million.

  • Net loss was $60 million. Adjusted net loss was $3 million.

  • Diluted loss per share was $0.13. Adjusted diluted loss per share was $0.01.

  • Inventory was down 3 percent to $824 million.

  • Cash and Cash Equivalents were $1.0 billion at the end of the quarter, and no borrowings were outstanding under the company's $1.1 billion revolving credit facility.

Fiscal Year End Change

As announced in February 2021, Under Armour changed its fiscal year from December 31 to March 31. Following a three-month transition period (January 1March 31, 2022), Under Armour's fiscal year 2023 will run from April 1, 2022, through March 31, 2023. Consequently, there will be no fiscal year 2022.

Fiscal 2023 Outlook

Due to Under Armour's fiscal year change, the comparable baseline period is April 1, 2021, through March 31, 2022. Based on current visibility, including ongoing supply chain challenges, COVID-19 uncertainty, and inflationary trends, key points related to Under Armour's fiscal year 2023 outlook include:

  • Revenue is expected to increase 5 to 7 percent versus the comparable baseline period of $5.7 billion, reflecting a mid-single-digit growth rate in North America and a low-teens growth rate in the international business. This expectation includes approximately three percentage points of headwinds related to our strategic decision to work with our vendors and customers to cancel orders affected by capacity issues, supply chain delays, and emergent COVID-19 impacts in China.

  • Gross margin is expected to be down 150 to 200 basis points compared to the baseline period's adjusted gross margin of 49.6 percent due to expected inflationary pressures on freight and product costs, unfavorable channel mix, and changes in foreign currency.

  • Operating income is expected to reach $375 to $400 million versus the comparable baseline period adjusted operating income of $424 million.

  • Diluted earnings per share is expected to be between $0.79 and $0.84 versus the comparable baseline period of $0.47. This includes a $0.28 benefit related to a tax valuation allowance release expected to be realized in the fourth quarter. Of this $0.28 benefit, $0.16 of this amount is related to prior restructuring charges; therefore, adjusted diluted earnings per share is expected to be between $0.63 and $0.68. This is comparable to the adjusted baseline period of $0.68.

2020 Restructuring Plan

The company also announced that it had concluded its 2020 restructuring plan with the recognition of $57 million during its transition quarter that ended March 31, 2022. Under the $600 million plan authorization, $571 million of total charges were recognized, including $197 million of cash-related charges and $374 million of non-cash-related charges.

Share Buyback Update

In February 2022, Under Armour announced that its Board of Directors authorized the repurchase of up to $500 million of its outstanding Class C common stock, to be made over the following two years through various methods, including open market, privately negotiated, and accelerated share repurchase transactions. An initial $300 million of repurchases was completed in early May through an accelerated share repurchase plan. The company currently has approximately $200 million remaining under its repurchase authorization.

Conference Call and Webcast

Under Armour will hold its transition quarter conference call and webcast today at approximately 8:30 a.m. Eastern Time. The call will be webcast live at https://about.underarmour.com/investor-relations/financials and will be archived and available for replay about three hours after the live event.

Non-GAAP Financial Information

This press release refers to "currency neutral" and "adjusted" results, as well as "adjusted" forward-looking estimates of the company's results for its 2023 fiscal year ending March 31, 2023. Management believes this information is useful to investors to compare the company's results of operations period-over-period because it enhances visibility into its actual underlying results, excluding these impacts. Currency-neutral financial information is calculated to exclude changes in foreign currency exchange rates. References to adjusted financial measures exclude the impact of the company's 2020 restructuring plan, and related impairment charges, including goodwill and related tax effects. Where applicable, adjusted net income (loss) and adjusted diluted income (loss) per share exclude the non-cash amortization of debt discount on the company's convertible senior notes, any gain or loss on extinguishing the company's convertible senior notes and related tax effects, and any gain or loss from divestitures (including earn-outs) and related tax effects. Management believes these adjustments are not core to the company's operations. The reconciliation of non-GAAP amounts to the most directly comparable financial measure calculated according to GAAP is presented in supplemental financial information furnished with this release. All per share amounts are reported on a diluted basis. In addition, in connection with its change in fiscal year-end from December 31 to March 31, Under Armour is presenting select non-GAAP financial measures for the twelve-month period beginning on April 1, 2021, and ending March 31, 2022, to provide comparable reference periods against the company's new fiscal 2023 year, which began April 1, 2022, and ends on March 31, 2023. These supplemental non-GAAP financial measures should not be considered in isolation and should be contemplated in addition to, and not as an alternative for, the company's reported results prepared per GAAP. Additionally, the company's non-GAAP financial information may not be comparable to similarly titled measures reported by other companies.

About Under Armour, Inc.

Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor, marketer and distributor of branded athletic performance apparel, footwear, and accessories. Designed to empower human performance, Under Armour's innovative products and experiences are engineered to make athletes better. For further information, please visit http://about.underarmour.com.

Forward Looking Statements

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, such as statements regarding our share repurchase program, our future financial condition or results of operations, our prospects and strategies for future growth, the impact of the COVID-19 pandemic on our business and results of operations and the operations of our suppliers and logistics providers, our plans to reduce our operating expenses, anticipated charges and restructuring costs, the development and introduction of new products, the implementation of our marketing and branding strategies, and the future benefits and opportunities from significant investments. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "outlook," "potential" or the negative of these terms or other comparable terminology. The forward-looking statements contained in this press release reflect our current views about future events and are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, activity levels, performance, or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by these forward-looking statements, including, but not limited to: the impact of the COVID-19 pandemic on our industry and our business, financial condition and results of operations, including recent impacts on the global supply chain; failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner; labor or other disruptions at ports or our suppliers or manufacturers; changes in general economic or market conditions that could affect overall consumer spending or our industry; increased competition causing us to lose market share or reduce the prices of our products or to increase our marketing efforts significantly; fluctuations in the costs of raw materials and commodities we use in our products and our supply chain; changes to the financial health of our customers; our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business and successfully execute any restructuring plans and realize their expected benefits; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer shopping and engagement preferences and consumer demand for our products and manage our inventory in response to changing demands; loss of key customers, suppliers or manufacturers; our ability to further expand our business globally and to drive brand awareness and consumer acceptance of our products in other countries; our ability to manage the increasingly complex operations of our global business; the impact of global events beyond our control, including military conflict; our ability to successfully manage or realize expected results from significant transactions and investments; our ability to effectively market and maintain a positive brand image; our ability to effectively meet the expectations of our stakeholders with respect to environmental, social and governance practices; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; any disruptions, delays or deficiencies in the design, implementation or application of our global operating and financial reporting information technology system; our ability to attract key talent and retain the services of our senior management and other key employees; our ability to access capital and financing required to manage our business on terms acceptable to us; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; risks related to foreign currency exchange rate fluctuations; our ability to comply with existing trade and other regulations, and the potential impact of new trade, tariff and tax regulations on our profitability; risks related to data security or privacy breaches; and our potential exposure to litigation and other proceedings. The forward-looking statements contained in this press release reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the statement's date or to reflect unanticipated events.

Under Armour, Inc.

For the Three Months Ended March 31, 2022, and 2021

(Unaudited; in thousands, except per share amounts)


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


Three Months Ended March 31,

in '000s

2022


% of Net
Revenues


2021


% of Net
Revenues

Net revenues

$ 1,300,945


100.0 %


$ 1,257,195


100.0%

Cost of goods sold

695,781


53.5 %


628,554


50.0%

Gross profit

605,164


46.5 %


628,641


50.0%

Selling, general and administrative expenses

594,446


45.7 %


514,638


40.9%

Restructuring and impairment charges

56,674


4.4 %


7,113


0.6%

Income (loss) from operations

(45,956)


(3.5)%


106,890


8.5%

Interest income (expense), net

(6,154)


(0.5)%


(14,137)


(1.1)%

Other income (expense), net

(51)


— %


(7,180)


(0.6)%

Income (loss) before income taxes

(52,161)


(4.0)%


85,573


6.8%

Income tax expense (benefit)

8,181


0.6 %


9,881


0.8%

Income (loss) from equity method investments

732


0.1 %


2,060


0.2%

Net income (loss)

$ (59,610)


(4.6)%


$ 77,752


6.2%









Basic net income (loss) per share of Class A, B and C common stock

$ (0.13)




$ 0.17



Diluted net income (loss) per share of Class A, B and C common stock

$ (0.13)




$ 0.17



Weighted average common shares outstanding Class A, B and C common stock

Basic

471,425




456,014



Diluted

471,425




459,226



Under Armour, Inc.

For the Three Months Ended March 31, 2022, and 2021

(Unaudited; in thousands)


NET REVENUES BY PRODUCT CATEGORY


Three Months Ended March 31,

in '000s

2022


2021


% Change

Apparel

$ 876,604


$ 810,041


8.2%

Footwear

296,696


309,047


(4.0)%

Accessories

96,803


117,396


(17.5)%

Total net sales

1,270,103


1,236,484


2.7%

Licensing revenues

26,602


21,657


22.8%

Corporate Other (1)

4,240


(946)


NM

Total net revenues

$ 1,300,945


$ 1,257,195


3.5%


NET REVENUES BY SEGMENT


Three Months Ended March 31,

in '000s

2022


2021


% Change

North America

$ 841,101


$ 805,727


4.4%

EMEA

228,056


193,883


17.6%

Asia-Pacific

181,908


210,220


(13.5)%

Latin America

45,640


48,311


(5.5)%

Corporate Other (1)

4,240


(946)


NM

Total net revenues

$ 1,300,945


$ 1,257,195


3.5%

INCOME (LOSS) FROM OPERATIONS


Three Months Ended March 31,

in '000s

2022

% of Net
Revenues (2)


2021

% of Net
Revenues (2)

North America

$ 154,084

18.3%


$ 210,562

26.1%

EMEA

30,336

13.3%


26,686

13.8%

Asia-Pacific

5,464

3.0%


46,513

22.1%

Latin America

6,343

13.9%


1,457

3.0%

Corporate Other (1)

(242,183)

NM


(178,328)

NM

Income (loss) from operations

$ (45,956)

(3.5)%


$ 106,890

8.5%

(1) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the Company's operating segments but managed through the Company's central foreign exchange risk management program and subscription revenues from digital platforms. Corporate Other also includes expenses related to the Company's central supporting functions.


(2) Operating income (loss) percentage is calculated based on total segment net revenues. The operating income (loss) percentage for Corporate Other is not presented as a meaningful metric (NM).

Under Armour, Inc.

As of March 31, 2022, December 31, 2021, and March 31, 2021

(Unaudited; in thousands)


CONDENSED CONSOLIDATED BALANCE SHEETS

in '000s


March 31, 2022


December 31, 2021


March 31, 2021

Assets







Current assets







Cash and cash equivalents


$ 1,009,139


$ 1,669,453


$ 1,348,737

Accounts receivable, net


702,197


569,014


696,287

Inventories


824,455


811,410


851,829

Prepaid expenses and other current assets, net


297,034


286,422


260,865

Total current assets


2,832,825


3,336,299


3,157,718

Property and equipment, net


601,365


607,226


632,307

Operating lease right-of-use assets


420,397


448,364


511,130

Goodwill


491,508


495,215


497,970

Intangible assets, net


10,580


11,010


12,548

Deferred income taxes


20,141


17,812


23,796

Other long term assets


76,016


75,470


78,827

Total assets


$ 4,452,832


$ 4,991,396


$ 4,914,296

Liabilities and Stockholders' Equity







Accounts payable


560,331


613,307


490,860

Accrued expenses


317,963


460,165


311,905

Customer refund liabilities


159,628


164,294


191,979

Operating lease liabilities


134,833


138,664


160,918

Other current liabilities


125,840


73,746


78,655

Total current liabilities


1,298,595


1,450,176


1,234,317

Long term debt, net of current maturities


672,286


662,531


1,009,951

Operating lease liabilities, non-current


668,983


703,111


801,292

Other long term liabilities


84,014


86,584


98,537

Total liabilities


2,723,878


2,902,402


3,144,097

Total stockholders' equity


1,728,954


2,088,994


1,770,199

Total liabilities and stockholders' equity


$ 4,452,832


$ 4,991,396


$ 4,914,296

Under Armour, Inc.

For the Three Months Ended March 31, 2022, and 2021

(Unaudited; in thousands)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


Three Months Ended March 31,

in '000s

2022


2021

Cash flows from operating activities




Net income (loss)

$ (59,610)


$ 77,752

Adjustments to reconcile net income (loss) to net cash used in operating activities




Depreciation and amortization

34,960


35,512

Unrealized foreign currency exchange rate gain (loss)

(8,585)


14,702

Loss on disposal of property and equipment

1,604


575

Non-cash restructuring and impairment charges

(1,871)


5,601

Amortization of bond premium and debt issuance costs

549


5,273

Stock-based compensation

11,764


10,372

Deferred income taxes

(2,500)


(9)

Changes in reserves and allowances

(5,250)


(9,262)

Changes in operating assets and liabilities:




Accounts receivable

(131,988)


(170,493)

Inventories

(6,425)


49,246

Prepaid expenses and other assets

(4,326)


22,295

Other non-current assets

27,628


19,467

Accounts payable

(54,970)


(80,092)

Accrued expenses and other liabilities

(122,589)


(121,841)

Customer refund liabilities

(4,398)


(10,949)

Income taxes payable and receivable

4,564


1,263

Net cash provided by (used in) operating activities

(321,443)


(150,588)

Cash flows from investing activities




Purchases of property and equipment

(39,923)


(8,465)

Sale of property and equipment


561

Net cash used in investing activities

(39,923)


(7,904)

Cash flows from financing activities




Common Shares Repurchased

(300,000)


Employee taxes paid for shares withheld for income taxes

(11,446)


(4,301)

Proceeds from exercise of stock options and other stock issuances

934


858

Net cash provided by (used in) financing activities

(310,512)


(3,443)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

11,134


(6,900)

Net increase in (decrease in) cash, cash equivalents and restricted cash

(660,744)


(168,835)

Cash, cash equivalents and restricted cash




Beginning of period

1,682,870


1,528,515

End of period

$ 1,022,126


$ 1,359,680

Under Armour, Inc.

For the Three Months March 31, 2022

(Unaudited)


The table below presents the reconciliation of net revenue growth (decline) calculated according to GAAP
to currency neutral net revenue a non-GAAP measure. See "Non-GAAP Financial Information" above for
further information regarding the Company's use of non-GAAP financial measures.


CURRENCY NEUTRAL NET REVENUE GROWTH (DECLINE) RECONCILIATION


Three months ended
March 31, 2022

Total Net Revenue


Net revenue growth - GAAP

3.5%

Foreign exchange impact

0.9%

Currency neutral net revenue growth - Non-GAAP

4.4%



North America


Net revenue growth - GAAP

4.4%

Foreign exchange impact

—%

Currency neutral net revenue growth - Non-GAAP

4.4%



EMEA


Net revenue growth - GAAP

17.6%

Foreign exchange impact

4.6%

Currency neutral net revenue growth - Non-GAAP

22.2%



Asia-Pacific


Net revenue growth - GAAP

(13.5)%

Foreign exchange impact

1.0%

Currency neutral net revenue growth - Non-GAAP

(12.5)%



Latin America


Net revenue growth - GAAP

(5.5)%

Foreign exchange impact

0.6%

Currency neutral net revenue growth - Non-GAAP

(4.9)%



Total International


Net revenue growth - GAAP

0.7%

Foreign exchange impact

2.5%

Currency neutral net revenue growth - Non-GAAP

3.2%

Under Armour, Inc.

For the Three Months March 31, 2022

(Unaudited; in thousands, except per share amounts)


The tables below present the reconciliation of the Company's condensed consolidated statement of
operations presented in accordance with GAAP to certain adjusted non-GAAP financial measures
discussed in this press release. See "Non-GAAP Financial Information" above for further information
regarding the Company's use of non-GAAP financial measures.


ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION

in '000s


Three months ended March 31, 2022

GAAP loss from operations


$ (45,956)

Add: Impact of restructuring and impairment charges


56,674

Adjusted income from operations


$ 10,718


ADJUSTED NET INCOME (LOSS) RECONCILIATION

in '000s


Three months ended March 31, 2022

GAAP net loss


$ (59,610)

Add: Impact of restructuring and impairment charges


56,674

Add: Impact of provision for income taxes


Adjusted net loss


$ (2,936)


ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION



Three months ended March 31, 2022

GAAP diluted net loss per share


$ (0.13)

Add: Impact of restructuring and impairment charges


0.12

Add: Impact of provision for income taxes


Adjusted diluted net loss per share


$ (0.01)

Under Armour, Inc.

Outlook for the Year Ended March 31, 2023

(Unaudited; in millions, except per share amounts)


The table below presents the reconciliation of the Company's fiscal 2023 outlook presented in accordance
with GAAP to certain adjusted non-GAAP financial measures discussed in this press release. See "Non-
GAAP Financial Information" above for further information regarding the Company's use of non-GAAP
financial measures.


ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION

(in millions)


Year Ended March 31, 2023



Low end of estimate

High end of estimate

GAAP diluted net income per share


$ 0.79

$ 0.84

Less: Impact of provision for income taxes


(0.16)

(0.16)

Adjusted diluted net income per share


$ 0.63

$ 0.68


(1) GAAP diluted net income (loss) per share excludes any potential earn-out related to the sale of the MyFitnessPal platform.

Under Armour, Inc.

For the Twelve Months Ended March 31, 2022

(Unaudited; in thousands, except per share amounts)


As discussed above, Under Armour has changed its fiscal year-end from December 31 to March 31. The
tables below and on the following page present select financial results and select non-GAAP financial
measures for the twelve-month period beginning on April 1, 2021, and ending March 31, 2022.
We believe this recast presentation will be useful to the company's investors because it provides
investors with comparable reference periods against the company's new fiscal 2023 year (which began
April 1, 2022, and ends on March 31, 2023).


SELECT TWELVE MONTHS ENDED MARCH 31, 2022, STATEMENTS OF OPERATIONS DATA

in '000s

Three Months
Ended
June 30,
2021


Three Months
Ended
September 30,
2021


Three Months
Ended
December 31,
2021


Three Months
Ended
March 31,
2022


Twelve Months
Ended
March 31,
2022


% of Net
Revenues

Net revenues

$ 1,351,534


$ 1,545,532


$ 1,529,205


$ 1,300,945


$ 5,727,216


100.0%

Cost of goods sold

682,713


757,428


753,272


695,781


2,889,194


50.4%

Gross profit

668,821


788,104


775,933


605,164


2,838,022


49.6%

Restructuring and impairment charges

2,613


16,656


14,136


56,674


90,079


1.6%

Income (loss) from operations

121,205


172,064


86,131


(45,956)


333,444


5.8%

Interest income (expense), net

(13,307)


(9,261)


(7,595)


(6,154)


(36,317)


(0.6)%

Other income (expense), net

(38,494)


(29,476)


24,037


(51)


(43,984)


(0.8)%

Income (loss) before income taxes

69,404


133,327


102,573


(52,161)


253,143


4.4%

Income tax expense (benefit)

10,027


18,962


(6,798)


8,181


30,372


0.5%

Net income (loss)

$ 59,207


$ 113,444


$ 109,657


$ (59,610)


$ 222,698


3.9%













Diluted net income (loss) per share of Class A, B and C common stock

$ 0.13


$ 0.24


$ 0.23


$ (0.13)


$ 0.47



Weighted average common shares outstanding Class A, B and C common stock



Diluted

462,286


473,116


479,728


471,425


472,457



ADJUSTED GROSS MARGIN RECONCILIATION

in '000s

Three Months
Ended
June 30,
2021


Three Months
Ended
September 30,
2021


Three Months
Ended
December 31,
2021


Three Months
Ended
March 31,
2022


Twelve Months
Ended
March 31,
2022

GAAP gross margin

49.5%


51.0%


50.7%


46.5%


49.6%

Add: Impact of restructuring charges recorded under cost of goods sold

3 bps


7 bps


— bps


— bps


— bps

Adjusted gross margin

49.5%


51.0%


50.7%


46.5%


49.6%

Under Armour, Inc.

For the Twelve Months Ended March 31, 2022

(Unaudited; in thousands, except per share amounts)


ADJUSTED OPERATING INCOME RECONCILIATION

in '000s

Three Months
Ended
June 30,
2021


Three Months
Ended
September 30,
2021


Three Months
Ended
December 31,
2021


Three Months
Ended
March 31,
2022


Twelve Months
Ended
March 31,
2022

GAAP income (loss) from operations

$ 121,205


$ 172,064


$ 86,131


$ (45,956)


$ 333,444

Add: Impact of restructuring and impairment charges

2,613


16,656


14,136


56,674


90,079

Add: Impact of restructuring charges recorded under cost of goods sold

408


107




515

Adjusted income (loss) from operations

$ 124,226


$ 188,827


$ 100,267


$ 10,718


$ 424,038


ADJUSTED OPERATING MARGIN RECONCILIATION

in '000s

Three Months
Ended
June 30,
2021


Three Months
Ended
September 30,
2021


Three Months
Ended
December 31,
2021


Three Months
Ended
March 31,
2022


Twelve Months
Ended
March 31,
2022

GAAP operating margin

9.0%


11.1%


5.6%


(3.5)%


5.8%

Add: Impact of restructuring and impairment charges

0.2%


1.1%


0.9%


4.4%


1.6%

Adjusted operating margin

9.2%


12.2%


6.5%


0.9%


7.4%


ADJUSTED NET INCOME RECONCILIATION

in '000s

Three Months
Ended
June 30,
2021


Three Months
Ended
September 30,
2021


Three Months
Ended
December 31,
2021


Three Months
Ended
March 31,
2022


Twelve Months
Ended
March 31,
2022

GAAP net income (loss)

$ 59,207


$ 113,444


$ 109,657


$ (59,610)


$ 222,698

Add: Impact of restructuring and impairment charges

2,613


16,656


14,136


56,674


90,079

Add: Impact of restructuring charges recorded under cost of goods sold

408


107




515

Add: Impact of amortization of debt discount

4,568


2,251


898



7,717

Add: Impact of loss on extinguishment of convertible senior notes

34,728


23,798




58,526

Add: Impact of earn-out recorded in connection with the sale of
MyFitnessPal platform



(35,000)



(35,000)

Add: Impact of provision for income taxes

8,498


(11,441)


(22,208)



(25,151)

Adjusted net income (loss)

$ 110,022


$ 144,815


$ 67,483


$ (2,936)


$ 319,384


ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION

in '000s

Three Months
Ended
June 30,
2021


Three Months
Ended
September 30,
2021


Three Months
Ended
December 31,
2021


Three Months
Ended
March 31,
2022


Twelve Months
Ended
March 31,
2022

GAAP diluted net income (loss) per share

$ 0.13


$ 0.24


$ 0.23


$ (0.13)


$ 0.47

Add: Impact of restructuring and impairment charges

0.01


0.04


0.03


0.12


0.19

Add: Impact of restructuring charges recorded under cost of goods sold





Add: Impact of amortization of debt discount

0.01





0.01

Add: Impact of loss on extinguishment of convertible senior notes

0.08


0.05




0.13

Add: Impact of earn-out recorded in connection with the sale of
MyFitnessPal platform



(0.07)



(0.07)

Add: Impact of provision for income taxes

0.01


(0.02)


(0.05)



(0.05)

Adjusted diluted income (loss) per share

$ 0.24


$ 0.31


$ 0.14


$ (0.01)


$ 0.68

Under Armour, Inc.

As of March 31, 2022, and 2021


COMPANY-OWNED & OPERATED DOOR COUNT



March 31,



2022


2021

Factory House


179


176

Brand House


18


16

North America total doors


197


192






Factory House


156


136

Brand House


87


98

International total doors


243


234






Factory House


335


312

Brand House


105


114

Total doors


440


426

Cision
Cision

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SOURCE Under Armour, Inc.