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Under Armour (UAA) Queued Up for Q1 Earnings: Factors to Note
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Under Armour, Inc. (UAA - Free Report) is likely to report a decline in the top line from the year-ago fiscal quarter’s reported figure when it reports first-quarter fiscal 2024 earnings on Aug 8 before market open. The Zacks Consensus Estimate for revenues stands at $1,301 million, indicating a dip of 3.6% from the prior-year fiscal period’s reported figure.
The bottom line of this developer, marketer and distributor of apparel, footwear and accessories is also expected to decrease from the prior-year fiscal quarter’s reading. The consensus estimate of a loss of 3 cents per share for the fiscal first quarter has been stable over the past 30 days. The company reported earnings of 3 cents per share in the year-ago period.
This Baltimore, MD-based player has a trailing four-quarter earnings surprise of 30.7%, on average. In the last reported quarter, Under Armour’s bottom line outperformed the Zacks Consensus Estimate by a margin of 20%.
Key Things to Note
Under Armour’s results for the fiscal first quarter are likely to have been hurt by a tough operating landscape, including inflationary pressures and adverse currency fluctuations. The company has been witnessing weak margins due to increased promotions and an unfavorable mix, which is associated with increased distributor and footwear revenues. These limitations, coupled with any deleverage in selling, general & administrative expenses and product costs, are expected to have weighed upon the company’s quarterly performance. The Zacks Consensus Estimate for the company’s direct-to-consumer channel is pegged at $479 million, showing a year-over-year decline of 8.1%.
On its last earnings call, Under Armour expected first-quarter fiscal 2024 revenues to decline in low to mid-single-digit on a challenging U.S. wholesale landscape. Management had projected a gross margin decline of 75-100 basis points, as higher planned promotions continue to outpace freight tailwinds. It had envisioned a loss per share of 3-5 cents for the quarter under review. UAA anticipated inventory to be up at a high 30s percentage rate for the first quarter. Management further cited that it expects supply-chain disruptions from prior periods to continue in the first half of fiscal 2024.
On the flip side, Under Armour’s focus on strengthening its brand through enhanced customer connections, effective innovations, better price points and a new loyalty program appear encouraging. UAA’s strategy to focus on improving sales through product innovation, investments in the stores and acceleration of e-commerce capabilities are likely to have been positive.
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Under Armour this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
LULU is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $2.17 billion, calling for growth of 15.9% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share is $2.52, which suggests a 14.6% increase from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
PVH Corp (PVH - Free Report) currently has an Earnings ESP of +1.02% and a Zacks Rank of 3. PVH is likely to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 million, suggesting a 2.5% rise from the figure reported in the prior-year quarter.
The consensus mark for PVH Corp’s second-quarter earnings is pegged at $1.75 per share, suggesting a 15.9% decline from earnings of $2.08 per share reported in the year-ago quarter. The consensus mark has remained unchanged in the past 30 days. PVH has a trailing four-quarter earnings surprise of 20.4%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +2.07% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.72 suggests an increase of 12.4% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.9 billion, suggesting growth of 9.4% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
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Under Armour (UAA) Queued Up for Q1 Earnings: Factors to Note
Under Armour, Inc. (UAA - Free Report) is likely to report a decline in the top line from the year-ago fiscal quarter’s reported figure when it reports first-quarter fiscal 2024 earnings on Aug 8 before market open. The Zacks Consensus Estimate for revenues stands at $1,301 million, indicating a dip of 3.6% from the prior-year fiscal period’s reported figure.
The bottom line of this developer, marketer and distributor of apparel, footwear and accessories is also expected to decrease from the prior-year fiscal quarter’s reading. The consensus estimate of a loss of 3 cents per share for the fiscal first quarter has been stable over the past 30 days. The company reported earnings of 3 cents per share in the year-ago period.
This Baltimore, MD-based player has a trailing four-quarter earnings surprise of 30.7%, on average. In the last reported quarter, Under Armour’s bottom line outperformed the Zacks Consensus Estimate by a margin of 20%.
Key Things to Note
Under Armour’s results for the fiscal first quarter are likely to have been hurt by a tough operating landscape, including inflationary pressures and adverse currency fluctuations. The company has been witnessing weak margins due to increased promotions and an unfavorable mix, which is associated with increased distributor and footwear revenues. These limitations, coupled with any deleverage in selling, general & administrative expenses and product costs, are expected to have weighed upon the company’s quarterly performance. The Zacks Consensus Estimate for the company’s direct-to-consumer channel is pegged at $479 million, showing a year-over-year decline of 8.1%.
On its last earnings call, Under Armour expected first-quarter fiscal 2024 revenues to decline in low to mid-single-digit on a challenging U.S. wholesale landscape. Management had projected a gross margin decline of 75-100 basis points, as higher planned promotions continue to outpace freight tailwinds. It had envisioned a loss per share of 3-5 cents for the quarter under review. UAA anticipated inventory to be up at a high 30s percentage rate for the first quarter. Management further cited that it expects supply-chain disruptions from prior periods to continue in the first half of fiscal 2024.
On the flip side, Under Armour’s focus on strengthening its brand through enhanced customer connections, effective innovations, better price points and a new loyalty program appear encouraging. UAA’s strategy to focus on improving sales through product innovation, investments in the stores and acceleration of e-commerce capabilities are likely to have been positive.
What Does the Zacks Model Unveil?
Our proven model predicts an earnings beat for Under Armour this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Under Armour, Inc. Price and EPS Surprise
Under Armour, Inc. price-eps-surprise | Under Armour, Inc. Quote
Under Armour has an Earnings ESP of +42.60% and a Zacks Rank of 3.
Other Stocks With the Favorable Combination
Here are three other companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle:
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.91% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
LULU is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $2.17 billion, calling for growth of 15.9% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share is $2.52, which suggests a 14.6% increase from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
PVH Corp (PVH - Free Report) currently has an Earnings ESP of +1.02% and a Zacks Rank of 3. PVH is likely to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.19 million, suggesting a 2.5% rise from the figure reported in the prior-year quarter.
The consensus mark for PVH Corp’s second-quarter earnings is pegged at $1.75 per share, suggesting a 15.9% decline from earnings of $2.08 per share reported in the year-ago quarter. The consensus mark has remained unchanged in the past 30 days. PVH has a trailing four-quarter earnings surprise of 20.4%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +2.07% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.72 suggests an increase of 12.4% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.9 billion, suggesting growth of 9.4% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.