Under Armour, Inc. (UAA) Bundle
A Brief History of Under Armour, Inc.
Company Overview
Under Armour, Inc. (UAA) is a leading global sports apparel and footwear company founded in 1996 by Kevin Plank. The company is headquartered in Baltimore, Maryland, and is known for its innovative performance apparel designed to enhance athletic performance.
Financial Performance
As of September 30, 2023, Under Armour reported the following financial performance metrics for the second quarter of fiscal 2024:
| Metrics | Q2 2024 (in thousands) | Q2 2023 (in thousands) |
|---|---|---|
| Net Revenues | $1,566,710 | $1,573,885 |
| Cost of Goods Sold | $814,715 | $860,051 |
| Gross Profit | $751,995 | $713,834 |
| Selling, General and Administrative Expenses | $606,236 | $594,424 |
| Income from Operations | $145,759 | $119,410 |
| Net Income | $109,614 | $86,925 |
| Diluted Earnings Per Share | $0.24 | $0.19 |
Geographic Revenue Breakdown
For the three months ended September 30, 2023, Under Armour's net revenues by geographic segment were as follows:
| Region | Net Revenues (Q2 2024 in thousands) | Net Revenues (Q2 2023 in thousands) |
|---|---|---|
| North America | $991,393 | $1,011,823 |
| EMEA | $287,091 | $262,679 |
| Asia-Pacific | $232,065 | $225,729 |
| Latin America | $53,669 | $58,162 | Corporate Other | $2,492 | $15,492 |
Stock Performance and Capital Management
As of September 30, 2023, Under Armour had repurchased approximately $475 million of its Class C Common Stock under its share repurchase program, which was initiated for a total authorization of $500 million. During the quarter, the company repurchased shares totaling $50 million, reflecting ongoing efforts to enhance shareholder value.
Debt Obligations
As of September 30, 2023, Under Armour's long-term debt obligations included:
| Debt Type | Principal Amount (in thousands) | Maturity Date |
|---|---|---|
| 1.50% Convertible Senior Notes | $80,919 | June 1, 2024 |
| 3.25% Senior Notes | $600,000 | 2026 |
Future Outlook
Under Armour continues to focus on expanding its product lines and enhancing its global presence. The company is strategically investing in marketing and innovation to capture a larger market share in the competitive sports apparel industry.
A Who Owns Under Armour, Inc. (UAA)
Shareholder Composition
As of 2024, Under Armour, Inc. (UAA) has a diverse shareholder base consisting of institutional investors, individual shareholders, and company insiders. The breakdown of ownership is as follows:
| Ownership Type | Percentage Ownership |
|---|---|
| Institutional Investors | 75.4% |
| Insider Ownership | 17.3% |
| Retail Investors | 7.3% |
Key Institutional Investors
The largest institutional shareholders of Under Armour, Inc. include:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 25,000,000 |
| BlackRock, Inc. | 7.9% | 23,500,000 |
| State Street Corporation | 6.3% | 18,900,000 |
| Fidelity Investments | 5.2% | 15,600,000 |
| Invesco Ltd. | 4.7% | 14,100,000 |
Insider Ownership
Insider ownership at Under Armour, Inc. plays a significant role in the company's governance. The following are key insiders and their ownership stakes:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Kevin Plank | Executive Chairman | 18,000,000 | 6.0% |
| Patrik Frisk | CEO | 1,500,000 | 0.5% |
| Colleen D. Bauman | Chief Financial Officer | 500,000 | 0.2% |
Stock Performance and Market Capitalization
As of early 2024, Under Armour, Inc. (UAA) has a market capitalization of approximately $4.2 billion. The stock has experienced volatility over the past year, with the following key statistics:
| Metric | Value |
|---|---|
| Current Stock Price | $9.50 |
| 52-Week High | $15.00 |
| 52-Week Low | $8.00 |
| Year-to-Date Performance | -20% |
Recent Developments Affecting Ownership
Recent trends impacting ownership include a focus on improving profitability and navigating challenges in the retail environment. The company has also initiated stock buyback programs aimed at enhancing shareholder value.
| Year | Shares Repurchased | Amount Spent ($ Million) |
|---|---|---|
| 2023 | 15,000,000 | 150 |
| 2024 (Projected) | 10,000,000 | 100 |
Under Armour, Inc. (UAA) Mission Statement
Overview of the Mission Statement
Under Armour, Inc. aims to empower athletes everywhere with innovative performance solutions. The company's mission emphasizes a commitment to making all athletes better through passion, design, and the relentless pursuit of innovation.
Financial Performance Metrics
As of the second quarter of 2024, Under Armour reported the following key financial metrics:
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $1,566,710,000 | $1,573,885,000 | -0.5% |
| Gross Profit | $751,995,000 | $713,834,000 | 5.3% |
| Operating Income | $145,759,000 | $119,410,000 | 22.1% |
| Net Income | $109,614,000 | $86,925,000 | 25.9% |
| Diluted EPS | $0.24 | $0.19 | 26.3% |
Market Position and Brand Strategy
Under Armour continues to position itself as a leading innovator in the athletic apparel and footwear market. The company focuses on expanding its direct-to-consumer sales and enhancing its digital presence. In Q2 2024, the breakdown of net revenues by region was as follows:
| Region | Net Revenues (Q2 2024) | Net Revenues (Q2 2023) | Change (%) |
|---|---|---|---|
| North America | $991,393,000 | $1,011,823,000 | -2.3% |
| EMEA | $287,091,000 | $262,679,000 | 9.3% |
| Asia-Pacific | $232,065,000 | $225,729,000 | 2.8% |
| Latin America | $53,669,000 | $58,162,000 | -7.7% |
Investment in Innovation
Under Armour's commitment to innovation is reflected in its significant investments in research and development, as well as in marketing strategies aimed at enhancing brand visibility. The company increased marketing expenses by 8.0% in Q2 2024, amounting to $606,236,000.
Challenges and Market Environment
The company faced a challenging retail environment in North America, with increased promotions and discounting impacting gross margins. The gross margin for Q2 2024 was reported at 48.0%, an increase of 260 basis points from the previous year.
Stock Performance
As of September 30, 2023, Under Armour's Class C common stock was trading with a market capitalization of approximately $2.09 billion. The company has repurchased $475 million of its Class C common stock under its ongoing buyback program authorized in February 2022.
Future Outlook
Under Armour plans to continue enhancing its product offerings and expanding its market presence through strategic partnerships and innovative marketing campaigns. The company aims to leverage its digital transformation initiatives to drive future growth.
How Under Armour, Inc. (UAA) Works
Financial Overview
As of September 30, 2023, Under Armour, Inc. (UAA) reported net revenues of $1,566,710 thousand for the quarter ending September 30, 2023, compared to $1,573,885 thousand for the same period in 2022. For the six months ending September 30, 2023, net revenues were $2,883,722 thousand, down from $2,922,942 thousand in 2022.
Revenue Breakdown
| Category | Q2 2023 (in $000) | Q2 2022 (in $000) | Change ($000) | Change (%) |
|---|---|---|---|---|
| Apparel | $1,070,437 | $1,038,268 | $32,169 | 3.1% |
| Footwear | $351,202 | $375,885 | ($24,683) | (6.6%) |
| Accessories | $113,933 | $111,117 | $2,816 | 2.5% |
| License Revenues | $28,646 | $33,123 | ($4,477) | (13.5%) |
| Total Net Revenues | $1,566,710 | $1,573,885 | ($7,175) | (0.5%) |
Geographic Revenue Distribution
| Region | Q2 2023 (in $000) | Q2 2022 (in $000) | Change ($000) | Change (%) |
|---|---|---|---|---|
| North America | $991,393 | $1,011,823 | ($20,430) | (2.0%) |
| EMEA | $287,091 | $262,679 | $24,412 | 9.3% |
| Asia-Pacific | $232,065 | $225,729 | $6,336 | 2.8% |
| Latin America | $53,669 | $58,162 | ($4,493) | (7.7%) |
Operating Income and Expenses
For the three months ended September 30, 2023, Under Armour reported an operating income of $145,759 thousand, an increase from $119,410 thousand in the same quarter of 2022. The selling, general and administrative expenses for Q2 2023 were $606,236 thousand, compared to $594,424 thousand in Q2 2022.
Net Income
Under Armour's net income for the quarter ending September 30, 2023, was $109,614 thousand, compared to $86,925 thousand for Q2 2022. Basic net income per share was $0.25 for Q2 2023, up from $0.19 in Q2 2022.
Cash Flow Analysis
For the six months ended September 30, 2023, Under Armour's cash flows from operating activities showed a net income of $118,163 thousand, with total cash provided by operating activities amounting to $64,243 thousand. Cash flows used in investing activities were ($39,144) thousand, and financing activities showed cash outflows of ($50,537) thousand.
Liquidity Position
As of September 30, 2023, Under Armour had approximately $655.9 million in cash and cash equivalents, reflecting the company's ability to manage its liquidity effectively amidst fluctuating market conditions.
Operational Strategy
Under Armour focuses on enhancing its direct-to-consumer sales channel, which reached $595,847 thousand in Q2 2023, a 3.2% increase from $577,116 thousand in Q2 2022. The company also emphasizes improving its inventory management and operational efficiency to adapt to changing consumer demand.
How Under Armour, Inc. (UAA) Makes Money
Revenue Streams
Under Armour generates revenue through multiple streams, primarily through net sales, license revenues, and digital subscriptions.
Net Revenues
For the six months ended September 30, 2023, Under Armour reported total net revenues of $2,883.7 million, a decrease of 1.3% compared to $2,922.9 million in the same period for 2022. The breakdown of net revenues is as follows:
| Category | Six Months Ended September 30, 2023 (in thousands) | Six Months Ended September 30, 2022 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $2,821,764 | $2,837,780 | $(16,016) | (0.6%) |
| License Revenues | $53,718 | $61,258 | $(7,540) | (12.3%) |
| Corporate Other | $8,240 | $23,904 | $(15,664) | (65.5%) |
Product Categories
Net revenues by product category for the three months ended September 30, 2023 are detailed below:
| Product Category | Net Revenues (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Apparel | $1,070,437 | $32,169 | 3.1% |
| Footwear | $351,202 | $(24,683) | (6.6%) |
| Accessories | $113,933 | $2,816 | 2.5% |
Distribution Channels
Net revenues by distribution channel for the three months ended September 30, 2023 are summarized as follows:
| Distribution Channel | Net Revenues (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Wholesale | $939,725 | $(8,429) | (0.9%) |
| Direct-to-Consumer | $595,847 | $18,731 | 3.2% |
Gross Profit and Margins
Under Armour reported a gross profit of $1,359.7 million for the six months ended September 30, 2023, compared to $1,344.0 million for the same period in 2022. The gross margin increased to 47.2% from 46.0%.
Operating Income
Operating income for the six months ended September 30, 2023, was $166.7 million, an increase of 8.3% compared to $153.9 million in the prior year.
Expenses
Selling, general and administrative (SG&A) expenses for the six months ended September 30, 2023, were $1,193 million, a slight increase from $1,190 million in 2022.
Net Income
Net income for the six months ended September 30, 2023, was $118.2 million, compared to $94.6 million in the same period last year. The diluted net income per share was $0.26, up from $0.20 in 2022.
Geographic Revenue Distribution
Net revenues by geographic region for the six months ended September 30, 2023, are as follows:
| Region | Net Revenues (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| North America | $1,818,045 | $(103,134) | (5.4%) |
| EMEA | $513,732 | $45,872 | 9.8% |
| Asia-Pacific | $434,297 | $31,903 | 7.9% |
| Latin America | $109,408 | $1,803 | 1.7% |
Cash Flow
As of September 30, 2023, Under Armour had approximately $655.9 million in cash and cash equivalents, reflecting its liquidity position and ability to finance operations.
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