UNDER ARMOUR Reports Fourth Quarter FY2023 Earnings Results on March 31 2023

Earnings Overview

On March 31, 2023, UNDER ARMOUR ($NYSE:UAA) announced their earnings results for the fourth quarter of FY2023. Total revenue for the quarter totaled USD 1398.9 million, which was a decrease of 8.5% when compared to the same period in the previous year. Net income, however, rose 55.5% year-over-year, reaching USD 170.5 million.

Share Price

The news was not well-received by investors, with the stock opening at $8.1 and closing at $8.2, a decrease of 5.7% from its prior closing price of $8.6. This marks the largest single day drop in UNDER ARMOUR stock, in nearly 2 years. This stands in stark contrast to the 5.7% increase in sales that the company reported in its third quarter earnings report. Analysts are expecting a much brighter outlook for UNDER ARMOUR going forward as the company continues to invest in new product launches and marketing initiatives.

Management has also promised to implement cost-cutting measures that should help bolster its financial performance in the future. Despite the disappointing earnings report, investors are still optimistic about the future of the company and its ability to create sustainable growth. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Under Armour. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Under Armour. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Under Armour. More…

Key Ratios Snapshot

Some of the financial key ratios for Under Armour are shown below. More…

Analysis

At GoodWhale, we conducted an analysis of Under Armour‘s wellbeing. According to our Risk Rating, Under Armour is a medium-risk investment in terms of its financial and business aspects. We detected two risk warnings in the company’s income sheet and balance sheet. If you’d like to take a closer look at these warnings, make sure to register on GoodWhale.com. Our platform can help you make more informed decisions when investing in Under Armour. More…

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 reported their fourth quarter of FY2023 earnings results on March 31 2023, showing a total revenue of USD 1398.9 million, a decrease of 8.5% y-o-y, while net income increased by 55.5% to USD 170.5 million. Investors reacted negatively to the results, as the stock price of Under Armour went down. This could be an indication of investors’ concerns in the company’s fundamentals and outlook going forward. Therefore, investors should assess the current financial situation and analyze the company’s future potential before making any investing decisions.