We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Under Armour (UAA) Q4 Earnings Beat, Revenues Increase Y/Y
Read MoreHide Full Article
Under Armour, Inc. (UAA - Free Report) continued its decent performance in fourth-quarter 2021, thanks to greater brand strength and improved consumer demand. Results reflected growth in both North America and international regions. Markedly, both the top and the bottom lines not only surpassed the Zacks Consensus Estimate but also increased year over year.
In spite of better-than-expected results, shares of Under Armour fell during the pre-market trading hours. We note that management cautioned about reductions in spring-summer 2022 order book owing to the lingering supply chain issues as well as hinted contraction in gross margin due to higher freight charges.
Shares of this Zacks Rank #3 (Hold) company have fallen 22.3% in the past six months compared with the industry’s decline of 17%.
Q4 Revenues & Earnings Picture
This athletic apparel maker reported adjusted earnings of 14 cents a share that fared far better than the Zacks Consensus Estimate of 6 cents. The bottom line also showcased an improvement from adjusted earnings of 12 cents reported in the year-ago period.
Meanwhile, net revenues of $1,529.2 million comfortably surpassed the Zacks Consensus Estimate of $1,462.9 million, thus marking the seventh straight beat. The top line grew 8.9% on a year-over-year basis. While wholesale revenues rose 16% year over year to $768 million, direct-to-consumer revenues advanced 10% to $720 million, buoyed by robust performance in owned and operated stores and 4% increase in e-commerce.
Under Armour, Inc. Price, Consensus and EPS Surprise
By product category, Apparel revenues jumped 18% year over year to $1,098.8 million, while Footwear revenues increased 17.4% to $282.7 million. Revenues from Accessories category declined 26.5% to $106.7 million. Meanwhile, Licensing revenues fell 32.9% to $36.6 million.
Net revenues from North America increased 15.1% to $1,063.3 million. Revenues from international business grew 3% (or up 1.7% on a currency neutral basis) to $461 million. Within international business, net revenues from EMEA increased 24.2% to $200.2 million. We note that revenues from Asia-Pacific and Latin America regions declined 5.9% and 21.7% to $217.2 million and $44 million, respectively.
The company’s gross margin expanded 130 basis points to 50.7% owing to benefits from pricing and restructuring charges in the prior year. This was offset by higher freight costs, absence of MyFitnessPal platform, and an unfavorable product mix. Adjusted operating income came in at $100.3 million, down from $120.2 million reported in the year-ago period.
Other Financial Details
Under Armour ended the quarter with cash and cash equivalents of $1,669.5 million, long-term debt (net of current maturities) of $662.5 million and total stockholders' equity of $2,089 million.
Guidance For Transition Quarter
Under Armour expects revenues to increase at a mid-single-digit rate for the transition quarter ending Mar 31, 2022 versus the prior expectation of a low single-digit rate increase. The current projection takes into account roughly 10 percentage points of headwinds related to reductions in spring-summer 2022 order book owing to the supply chain constraints.
Management foresees gross margin contraction of 200 basis points compared with the prior year period. This indicates approximately 240 basis points of negative impact from higher freight costs owing to the supply chain bottlenecks in addition to unfavorable sales mix, partly offset by pricing benefits.
The company guided operating income between $30-$35 million and earnings in the band of 2 cents to 3 cents a share.
Last year in February, Under Armour's board of directors authorized a change in fiscal year-end from Dec 31 to Mar 31, effective for the fiscal year beginning Apr 1, 2022.
Pick These 3 Stocks
Here are three more favorably ranked stocks — DICK'S Sporting Goods (DKS - Free Report) , Capri Holdings (CPRI - Free Report) and Wolverine World Wide (WWW - Free Report) .
DICK'S Sporting Goods, which operates as a sporting goods retailer, sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 104.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DICK'S Sporting Goods’ current financial year sales and EPS suggests growth of 27.8% and 151.6%, respectively, from the year-ago period. DKS has an expected EPS growth rate of 11.7% for three-five years.
Capri Holdings, a global fashion luxury group, flaunts a Zacks Rank #1. The company’s bottom line has outperformed the Zacks Consensus Estimate by a wide margin in the trailing four quarters.
The Zacks Consensus Estimate for Capri Holdings’ current financial year sales and EPS suggests growth of 37.1% and 215.8%, respectively, from the year-ago period. CPRI has an expected EPS growth rate of 30.9% for three-five years.
Wolverine World Wide, one of the leading marketers and licensors of a branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 18.3%, on average.
The Zacks Consensus Estimate for Wolverine World Wide’s current financial year sales and EPS suggests growth of 34.4% and 125.8%, respectively, from the year-ago period. WWW has an expected EPS growth rate of 10% for three-five years.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Under Armour (UAA) Q4 Earnings Beat, Revenues Increase Y/Y
Under Armour, Inc. (UAA - Free Report) continued its decent performance in fourth-quarter 2021, thanks to greater brand strength and improved consumer demand. Results reflected growth in both North America and international regions. Markedly, both the top and the bottom lines not only surpassed the Zacks Consensus Estimate but also increased year over year.
In spite of better-than-expected results, shares of Under Armour fell during the pre-market trading hours. We note that management cautioned about reductions in spring-summer 2022 order book owing to the lingering supply chain issues as well as hinted contraction in gross margin due to higher freight charges.
Shares of this Zacks Rank #3 (Hold) company have fallen 22.3% in the past six months compared with the industry’s decline of 17%.
Q4 Revenues & Earnings Picture
This athletic apparel maker reported adjusted earnings of 14 cents a share that fared far better than the Zacks Consensus Estimate of 6 cents. The bottom line also showcased an improvement from adjusted earnings of 12 cents reported in the year-ago period.
Meanwhile, net revenues of $1,529.2 million comfortably surpassed the Zacks Consensus Estimate of $1,462.9 million, thus marking the seventh straight beat. The top line grew 8.9% on a year-over-year basis. While wholesale revenues rose 16% year over year to $768 million, direct-to-consumer revenues advanced 10% to $720 million, buoyed by robust performance in owned and operated stores and 4% increase in e-commerce.
Under Armour, Inc. Price, Consensus and EPS Surprise
Under Armour, Inc. price-consensus-eps-surprise-chart | Under Armour, Inc. Quote
Let’s Take an Insight
By product category, Apparel revenues jumped 18% year over year to $1,098.8 million, while Footwear revenues increased 17.4% to $282.7 million. Revenues from Accessories category declined 26.5% to $106.7 million. Meanwhile, Licensing revenues fell 32.9% to $36.6 million.
Net revenues from North America increased 15.1% to $1,063.3 million. Revenues from international business grew 3% (or up 1.7% on a currency neutral basis) to $461 million. Within international business, net revenues from EMEA increased 24.2% to $200.2 million. We note that revenues from Asia-Pacific and Latin America regions declined 5.9% and 21.7% to $217.2 million and $44 million, respectively.
The company’s gross margin expanded 130 basis points to 50.7% owing to benefits from pricing and restructuring charges in the prior year. This was offset by higher freight costs, absence of MyFitnessPal platform, and an unfavorable product mix. Adjusted operating income came in at $100.3 million, down from $120.2 million reported in the year-ago period.
Other Financial Details
Under Armour ended the quarter with cash and cash equivalents of $1,669.5 million, long-term debt (net of current maturities) of $662.5 million and total stockholders' equity of $2,089 million.
Guidance For Transition Quarter
Under Armour expects revenues to increase at a mid-single-digit rate for the transition quarter ending Mar 31, 2022 versus the prior expectation of a low single-digit rate increase. The current projection takes into account roughly 10 percentage points of headwinds related to reductions in spring-summer 2022 order book owing to the supply chain constraints.
Management foresees gross margin contraction of 200 basis points compared with the prior year period. This indicates approximately 240 basis points of negative impact from higher freight costs owing to the supply chain bottlenecks in addition to unfavorable sales mix, partly offset by pricing benefits.
The company guided operating income between $30-$35 million and earnings in the band of 2 cents to 3 cents a share.
Last year in February, Under Armour's board of directors authorized a change in fiscal year-end from Dec 31 to Mar 31, effective for the fiscal year beginning Apr 1, 2022.
Pick These 3 Stocks
Here are three more favorably ranked stocks — DICK'S Sporting Goods (DKS - Free Report) , Capri Holdings (CPRI - Free Report) and Wolverine World Wide (WWW - Free Report) .
DICK'S Sporting Goods, which operates as a sporting goods retailer, sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 104.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DICK'S Sporting Goods’ current financial year sales and EPS suggests growth of 27.8% and 151.6%, respectively, from the year-ago period. DKS has an expected EPS growth rate of 11.7% for three-five years.
Capri Holdings, a global fashion luxury group, flaunts a Zacks Rank #1. The company’s bottom line has outperformed the Zacks Consensus Estimate by a wide margin in the trailing four quarters.
The Zacks Consensus Estimate for Capri Holdings’ current financial year sales and EPS suggests growth of 37.1% and 215.8%, respectively, from the year-ago period. CPRI has an expected EPS growth rate of 30.9% for three-five years.
Wolverine World Wide, one of the leading marketers and licensors of a branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 18.3%, on average.
The Zacks Consensus Estimate for Wolverine World Wide’s current financial year sales and EPS suggests growth of 34.4% and 125.8%, respectively, from the year-ago period. WWW has an expected EPS growth rate of 10% for three-five years.