Under Armour Reports 2.4% Decrease in Revenue for Q1 FY2024
August 25, 2023
🌥️Earnings Overview
On June 30 2023, UNDER ARMOUR ($NYSE:UAA) revealed its financial figures for the first quarter of FY2024, which reported total revenue of USD 1317.0 million, a dip of 2.4% compared to the same quarter the previous year. Additionally, net income experienced a surge of 11.3%, totalling USD 8.6 million.
Analysis
Under Armour has been under close analysis by GoodWhale recently. According to their Star Chart, Under Armour has a high health score of 7/10, taking into account its cash flows and debt. This score indicates that Under Armour is capable of paying off its debt and funding future operations. Furthermore, Under Armour is strong in profitability, medium in asset, and weak in dividend and growth. Under Armour is classified as an ‘elephant’, which is a type of company that is rich in assets when liabilities are deducted off. Thus, investors who are looking for a strong and safe investment with a medium level of asset growth may be interested in Under Armour. Investors who are looking for high dividend returns and rapid growth may be disappointed by the results of the GoodWhale analysis. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Under Armour. More…
| Total Revenues | Net Income | Net Margin |
| 5.87k | 387.64 | 6.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Under Armour. More…
| Operations | Investing | Financing |
| -96.38 | -146.64 | -103.25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Under Armour. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.87k | 2.86k | 4.51 |
Key Ratios Snapshot
Some of the financial key ratios for Under Armour are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.9% | 6.5% | 4.6% |
| FCF Margin | ROE | ROA |
| -4.9% | 8.4% | 3.5% |
Peers
Under Armour, Inc. is an American company that manufactures footwear, sports, and casual apparel. Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour is the second-largest sportswear manufacturer in the United States. UA’s competitors include Nike, Lululemon Athletica, and Capri Holdings.
– Nike Inc ($NYSE:NKE)
Nike Inc is a publicly traded company with a market capitalization of 137.7 billion as of 2022. The company has a return on equity of 25.1%. Nike is a designer, manufacturer, and marketer of athletic footwear, apparel, equipment, and accessories. The company’s products are sold in over 190 countries worldwide. Nike has endorsement deals with some of the world’s most popular athletes, including LeBron James, Cristiano Ronaldo, and Tiger Woods.
– Lululemon Athletica Inc ($NASDAQ:LULU)
Lululemon Athletica Inc. is a Canadian athletic apparel retailer. The company was founded in 1998 by Chip Wilson and is headquartered in Vancouver, British Columbia. Lululemon Athletica Inc. designs, manufactures and markets athletic apparel and accessories for women, men and girls. The company’s product line includes pants, shorts, tops, jackets, hoodies, and accessories such as bags, socks, and headwear. Lululemon Athletica Inc. also operates a website and provides online shopping services. As of 2022, the company’s market cap is $37.96 billion and its ROE is 34.51%.
– Capri Holdings Ltd ($NYSE:CPRI)
Capri Holdings Ltd is a fashion company with a market cap of 5.96B as of 2022. The company has a Return on Equity of 25.1%. Capri Holdings Ltd is a luxury fashion company that owns and operates a portfolio of iconic fashion brands, including Michael Kors, Versace, and Jimmy Choo. The company’s brands are available in more than 100 countries through a network of company-operated stores, licensed stores, and e-commerce sites.
Summary
UNDER ARMOUR has seen a decline in revenue of 2.4% in the first quarter of FY2024 compared to the same quarter last year, however, net income still grew by 11.3%. This could be an indication of cost-saving measures taken by the company to remain profitable in a difficult economic climate. Investors should keep an eye on UNDER ARMOUR’s financials to see whether their cost-cutting strategy is sufficient to offset the declining revenues and ensure long-term profitability. Additionally, it will be important to watch the company’s new product releases and marketing efforts in order to determine if they are resonating with customers and driving sales.
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