BALTIMORE, Oct. 31, 2017
/PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced
financial results for the third quarter ended September 30,
2017. The company reports its financial performance in accordance
with accounting principles generally accepted in the United States of America ("GAAP"). This
press release refers to "currency neutral" and "adjusted" amounts,
which are non-GAAP financial measures described below under the
"Non-GAAP Financial Information" paragraph. Reconciliations of
non-GAAP amounts to the most directly comparable financial measure
calculated in accordance with GAAP are presented in supplemental
financial information furnished with this release. All per share
amounts are reported on a diluted basis.
![Under Armour, Inc. Logo. (PRNewsFoto/Under Armour, Inc.) Under Armour, Inc. Logo. (PRNewsFoto/Under Armour, Inc.)](https://mma.prnewswire.com/media/593170/UNDER_ARMOUR__INC__LOGO.jpg)
"While our international business continues to deliver against
our ambition of building a global brand, operational challenges and
lower demand in North America
resulted in third quarter revenue that was below our expectations,"
said Under Armour Chairman and CEO Kevin
Plank. "Based on these issues in our largest market, we
believe it is prudent to reduce our sales and earnings outlook for
the remainder of 2017."
"Against this difficult backdrop, our management team is working
aggressively to evolve our strategy and level of execution to
proactively address these challenges. We understand that success in
our next chapter requires managing with focused financial
discipline and driving excellence into every area of our business
while we amplify innovation, deliver fresh product and connect even
more deeply with our consumers."
The summary below provides both GAAP and adjusted non-GAAP
financial measures. In the third quarter of 2017, in connection
with the company's restructuring plan, it recognized pre-tax costs
totaling $89 million comprising of
$22 million in cash related charges
and $67 million in non-cash charges.
Adjusted financial measures exclude the impact of the restructuring
and other related charges and the related tax effects.
Third Quarter Review
- Revenue was down 5 percent to $1.4 billion. During the third quarter,
operational challenges due to the implementation of the company's
enterprise resource planning system and related service levels
along with lower North American demand negatively impacted
revenue.
-
- Revenue to wholesale customers declined 13 percent to
$880 million and direct-to-consumer
revenue was up 15 percent to $468
million.
- North America challenges
impacted results with revenue down 12 percent. Strong international
momentum continued with revenue up 35 percent (up 34 percent
currency neutral), representing 22 percent of total revenue. Within
our international business, revenue in EMEA was up 22 percent (up
20 percent currency neutral), up 52 percent in Asia-Pacific (up 53 percent currency neutral)
and up 33 percent in Latin America
(up 27 percent currency neutral).
- Apparel revenue decreased 8 percent to $939 million, as growth in golf and sportstyle
was more than offset by declines in outdoor, women's training and
youth. Footwear revenue was up 2 percent to $285 million, driven by strength in running and
outdoor, offset by basketball and youth. Accessories revenue
increased 1 percent to $123 million
led by golf and men's training, tempered by a decline in
outdoor.
- Gross margin declined 160 basis points to 45.9 percent
as benefits from changes in foreign currency rates and product
costs were more than offset by pricing and other inventory
management initiatives, and regional mix. Adjusted gross margin,
which excludes a $4 million impact
from restructuring efforts, was 46.2 percent, a decrease of 130
basis points compared to the prior year.
- SG&A was in-line with the prior year.
- Restructuring and impairment charges were $85 million.
- Operating income was $62
million. Adjusted operating income was $151 million.
- Effective tax rate was negative 5 percent due to higher
mix of international pre-tax income and challenged results in the
North American business, coupled with the impact of the
restructuring and impairment charges. The adjusted effective tax
rate was 29 percent.
- Net income was $54 million
in the third quarter. Adjusted net income was $100 million.
- Diluted earnings per share was $0.12. Adjusted diluted earnings per share was
$0.22.
- Inventory increased 22 percent to $1.2 billion.
- Cash and cash equivalents increased 43 percent to
$258 million.
Updated Fiscal 2017 Outlook
Key points related to Under Armour's full year 2017 updated
outlook include:
- Net revenue is expected to be up at a low single-digit
percentage rate reflecting lower North American demand and
operational challenges due to the implementation of the company's
enterprise resource planning system and related service
levels.
- Gross margin is expected to be down approximately
220 basis points compared to 46.4 percent in 2016 as benefits from
product costs and channel mix are more than offset by increased
efforts to manage inventory within a highly promotional
environment, impacts from the restructuring plan and increasing
regional mix. Adjusted gross margin is expected to be down
approximately 190 basis points compared to 46.4 percent in
2016.
- Operating income is expected to be approximately
$0 to $10 million. Adjusted operating
income is expected to reach $140 million to
$150 million.
- Interest and other expense net of approximately
$35 million.
- Excluding the effect of the restructuring plan, adjusted
effective tax rate of approximately 23 percent.
- Adjusted diluted earnings per share of $0.18 to $0.20.
- Capital expenditures of approximately $300 million.
On August 1, the company announced
a restructuring plan, which detailed expectations to incur total
estimated pre-tax restructuring and related charges of
approximately $110 million to $130
million. In the third quarter, the company recognized
$60 million of pre-tax charges in
connection with this restructuring plan. In addition to these
charges, the company also recognized restructuring related goodwill
impairment charges of $29 million for
its Connected Fitness business. Inclusive of this impairment,
the company now expects to incur total estimated pre-tax
restructuring and related charges of approximately $140 million to $150 million.
Conference Call and Webcast
Under Armour will hold its third quarter 2017 conference call
and webcast today at approximately 8:30 a.m.
Eastern Time. The call will be webcast live at
http://investor.underarmour.com and will be archived and available
for replay approximately three hours after the live event.
Non-GAAP Financial Information
This press release refers to "currency neutral" and "adjusted"
results as well as "adjusted" forward looking estimates of the
company's fiscal 2017 outlook. Currency neutral financial
information is calculated to exclude the impact of changes in
foreign currency. Management believes this information is useful to
investors to facilitate a comparison of the Company's results of
operations period-over-period. Adjusted operating income, adjusted
gross margin, adjusted effective tax rate, adjusted net income and
adjusted diluted earnings per share exclude the impact of
restructuring and other related charges. Management believes this
information is useful to investors because it provides enhanced
visibility into the company's actual and expected underlying
results excluding the impact of the restructuring plan. These
non-GAAP financial measures should not be considered in isolation
and should be viewed in addition to, and not as an alternative for,
the Company's reported results prepared in accordance with GAAP.
Additionally, the Company's non-GAAP financial information may not
be comparable to similarly titled measures reported by other
companies.
About Under Armour, Inc.
Under Armour, Inc., headquartered in Baltimore, Maryland is a leading innovator,
marketer and distributor of branded performance athletic apparel,
footwear and accessories. Designed to make all athletes better, the
brand's innovative products are sold worldwide to consumers with
active lifestyles. The company's Connected Fitness™
platform powers the world's largest digitally
connected health and fitness community. For further
information, please visit www.uabiz.com.
Forward Looking Statements
Some of the statements contained in this press release
constitute forward-looking statements. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts, such as
statements regarding our future financial condition or results of
operations, our prospects and strategies for future growth, our
anticipated charges and restructuring costs and the timing of these
measures, the development and introduction of new products, the
implementation of our marketing and branding strategies, and the
future benefits and opportunities from acquisitions and other
significant investments. In many cases, you can identify
forward-looking statements by terms such as "may," "will,"
"should," "expects," "plans," "assumes," "anticipates," "believes,"
"estimates," "predicts," "outlook," "potential" or the
negative of these terms or other comparable terminology. The
forward-looking statements contained in this press release reflect
our current views about future events and are subject to risks,
uncertainties, assumptions and changes in circumstances that may
cause events or our actual activities or results to differ
significantly from those expressed in any forward-looking
statement. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
future events, results, actions, levels of activity, performance or
achievements. Readers are cautioned not to place undue reliance on
these forward-looking statements. A number of important factors
could cause actual results to differ materially from those
indicated by the forward-looking statements, including, but not
limited to: changes in general economic or market conditions that
could affect overall consumer spending or our industry; changes to
the financial health of our customers; our ability to effectively
manage our growth and a more complex global business; our ability
to successfully execute our restructuring plan and realize its
expected benefits; our ability to effectively drive operational
efficiency in our business; any disruptions, delays or deficiencies
in the design or implementation of our new global operating and
financial reporting information technology system; our ability to
comply with existing trade and other regulations, and the potential
impact of new trade and tax regulations on our profitability; our
ability to successfully manage or realize expected results from
acquisitions and other significant investments or capital
expenditures; our ability to effectively develop and launch new,
innovative and updated products; increased competition causing us
to lose market share or reduce the prices of our products or to
increase significantly our marketing efforts; our ability to
accurately forecast consumer demand for our products and manage our
inventory in response to changing demands; fluctuations in the
costs of our products; loss of key suppliers or manufacturers or
failure of our suppliers or manufacturers to produce or deliver our
products in a timely or cost-effective manner, including due to
port disruptions; our ability to further expand our business
globally and to drive brand awareness and consumer acceptance of
our products in other countries; our ability to accurately
anticipate and respond to seasonal or quarterly fluctuations in our
operating results; risks related to foreign currency exchange rate
fluctuations; our ability to effectively market and maintain a
positive brand image; the availability, integration and effective
operation of information systems and other technology, as well as
any potential interruption in such systems or technology; risks
related to data security or privacy breaches; our ability to raise
additional capital required to grow our business on terms
acceptable to us; our potential exposure to litigation and other
proceedings; and our ability to attract key talent and retain the
services of our senior management and key employees. The
forward-looking statements contained in this press release reflect
our views and assumptions only as of the date of this press
release. We undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
unanticipated events.
Under Armour,
Inc.
|
For the Quarter Ended
and Nine Months Ended September 30, 2017 and 2016
|
(Unaudited; in
thousands, except per share amounts)
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
Quarter Ended
September 30,
|
Nine Months Ended
September 30,
|
|
|
2017
|
% of Net
Revenues
|
2016
|
% of Net
Revenues
|
2017
|
% of Net
Revenues
|
2016
|
% of Net
Revenues
|
Net
revenues
|
|
$
|
1,405,615
|
|
100.0
|
%
|
$
|
1,471,573
|
|
100.0
|
%
|
$
|
3,611,192
|
|
100.0
|
%
|
$
|
3,520,058
|
|
100.0
|
%
|
Cost of goods
sold
|
|
760,265
|
|
54.1
|
%
|
772,949
|
|
52.5
|
%
|
1,962,172
|
|
54.3
|
%
|
1,863,151
|
|
52.9
|
%
|
Gross
Profit
|
|
645,350
|
|
45.9
|
%
|
698,624
|
|
47.5
|
%
|
1,649,020
|
|
45.7
|
%
|
1,656,907
|
|
47.1
|
%
|
Selling, general and
administrative
expenses
|
|
498,172
|
|
35.4
|
%
|
499,314
|
|
34.0
|
%
|
1,495,992
|
|
41.4
|
%
|
1,403,336
|
|
39.9
|
%
|
Restructuring
and impairment charges
|
|
84,998
|
|
6.0
|
%
|
—
|
|
—
|
%
|
88,097
|
|
2.4
|
%
|
—
|
|
—
|
%
|
Income from
operations
|
|
62,180
|
|
4.4
|
%
|
199,310
|
|
13.5
|
%
|
64,931
|
|
1.8
|
%
|
253,571
|
|
7.2
|
%
|
Interest
expense, net
|
|
(9,575)
|
|
(0.7)
|
%
|
(8,189)
|
|
(0.5)
|
%
|
(25,237)
|
|
(0.7)
|
%
|
(18,476)
|
|
(0.6)
|
%
|
Other expense,
net
|
|
(1,069)
|
|
(0.1)
|
%
|
(772)
|
|
(0.1)
|
%
|
(1,383)
|
|
—
|
%
|
(1,025)
|
|
—
|
%
|
Income
before income taxes
|
|
51,536
|
|
3.7
|
%
|
190,349
|
|
12.9
|
%
|
38,311
|
|
1.1
|
%
|
234,070
|
|
6.6
|
%
|
Income tax expense
(benefit)
|
|
(2,706)
|
|
(0.2)%
|
|
62,124
|
|
4.2
|
%
|
(1,349)
|
|
—
|
%
|
80,322
|
|
2.2
|
%
|
Net
income
|
|
54,242
|
|
3.9
|
%
|
128,225
|
|
8.7
|
%
|
39,660
|
|
1.1
|
%
|
153,748
|
|
4.4
|
%
|
Adjustment payment to
Class
C capital stockholders
|
|
—
|
|
—
|
%
|
—
|
|
—
|
%
|
—
|
|
—
|
%
|
59,000
|
|
1.7
|
%
|
Net income
available to all stockholders
|
|
$
|
54,242
|
|
3.9
|
%
|
$
|
128,225
|
|
8.7
|
%
|
$
|
39,660
|
|
1.1
|
%
|
$
|
94,748
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
share of
Class A and B common
stock
|
|
$
|
0.12
|
|
|
$
|
0.29
|
|
|
$
|
0.09
|
|
|
$
|
0.22
|
|
|
Basic net income per
share of
Class C common
stock
|
|
$
|
0.12
|
|
|
$
|
0.29
|
|
|
$
|
0.09
|
|
|
$
|
0.49
|
|
|
Diluted net income
per share of
Class A and B common
stock
|
|
$
|
0.12
|
|
|
$
|
0.29
|
|
|
$
|
0.09
|
|
|
$
|
0.21
|
|
|
Diluted net income
per share of
Class C common
stock
|
|
$
|
0.12
|
|
|
$
|
0.29
|
|
|
$
|
0.09
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding Class A and B common stock
|
Basic
|
|
219,491
|
|
|
218,074
|
|
|
219,125
|
|
|
217,535
|
|
|
Diluted
|
|
222,848
|
|
|
222,115
|
|
|
222,871
|
|
|
221,709
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding Class C common stock
|
Basic
|
|
221,784
|
|
|
219,756
|
|
|
221,235
|
|
|
218,147
|
|
|
Diluted
|
|
225,591
|
|
|
223,738
|
|
|
225,390
|
|
|
222,301
|
|
|
Under Armour,
Inc.
|
For the Quarter Ended
and Nine Months Ended September 30, 2017 and 2016
|
(Unaudited; in
thousands)
|
|
NET REVENUES BY
PRODUCT CATEGORY
|
|
|
|
Quarter Ended
September 30,
|
Nine Months Ended
September 30,
|
|
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
Apparel
|
$
|
939,364
|
$
|
1,021,185
|
|
(8.0)
|
%
|
$
|
2,335,454
|
$
|
2,300,596
|
|
1.5
|
%
|
Footwear
|
285,052
|
278,891
|
|
2.2
|
%
|
791,637
|
785,843
|
|
0.7
|
%
|
Accessories
|
123,487
|
121,832
|
|
1.4
|
%
|
335,172
|
302,267
|
|
10.9
|
%
|
Total net
sales
|
1,347,903
|
1,421,908
|
|
(5.2)
|
%
|
3,462,263
|
3,388,706
|
|
2.2
|
%
|
Licensing
revenues
|
34,324
|
29,484
|
|
16.4
|
%
|
83,639
|
69,923
|
|
19.6
|
%
|
Connected
Fitness
|
23,388
|
20,181
|
|
15.9
|
%
|
65,290
|
62,179
|
|
5.0
|
%
|
Intersegment
eliminations
|
—
|
—
|
|
—
|
%
|
—
|
(750)
|
|
100.0
|
%
|
Total net
revenues
|
$
|
1,405,615
|
$
|
1,471,573
|
|
(4.5)
|
%
|
$
|
3,611,192
|
$
|
3,520,058
|
|
2.6
|
%
|
|
NET REVENUES BY
SEGMENT
|
|
|
|
Quarter Ended
September 30,
|
Nine Months Ended
September 30,
|
|
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
North
America
|
$
|
1,077,088
|
$
|
1,225,188
|
|
(12.1)
|
%
|
$
|
2,778,165
|
$
|
2,932,915
|
|
(5.3)
|
%
|
EMEA
|
127,932
|
105,099
|
|
21.7
|
%
|
334,683
|
237,559
|
|
40.9
|
%
|
Asia-Pacific
|
130,320
|
85,810
|
|
51.9
|
%
|
309,712
|
188,985
|
|
63.9
|
%
|
Latin
America
|
46,887
|
35,295
|
|
32.8
|
%
|
123,342
|
99,170
|
|
24.4
|
%
|
Connected
Fitness
|
23,388
|
20,181
|
|
15.9
|
%
|
65,290
|
62,179
|
|
5.0
|
%
|
Intersegment
eliminations
|
—
|
—
|
|
—
|
%
|
—
|
(750)
|
|
0.1
|
%
|
Total net
revenues
|
$
|
1,405,615
|
$
|
1,471,573
|
|
(4.5)
|
%
|
$
|
3,611,192
|
$
|
3,520,058
|
|
2.6
|
%
|
|
OPERATING INCOME
(LOSS) BY SEGMENT
|
|
|
|
Quarter Ended
September 30,
|
Nine Months Ended
September 30,
|
|
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
North
America
|
$
|
65,827
|
$
|
182,840
|
|
(64.0)
|
%
|
$
|
64,124
|
$
|
251,084
|
|
(74.5)
|
%
|
EMEA
|
16,977
|
8,383
|
|
102.5
|
%
|
13,990
|
8,348
|
|
67.6
|
%
|
Asia-Pacific
|
34,173
|
27,151
|
|
25.9
|
%
|
69,050
|
54,399
|
|
26.9
|
%
|
Latin
America
|
(10,223)
|
(10,550)
|
|
3.1
|
%
|
(26,176)
|
(27,751)
|
|
(5.7)
|
%
|
Connected
Fitness
|
(44,574)
|
(8,514)
|
|
423.5
|
%
|
(56,058)
|
(32,509)
|
|
72.4
|
%
|
Income from
operations
|
$
|
62,180
|
$
|
199,310
|
|
(68.8)
|
%
|
$
|
64,930
|
$
|
253,571
|
|
(74.4)
|
%
|
Under Armour,
Inc.
|
As of
September 30, 2017, December 31, 2016 and
September 30, 2016
|
(Unaudited; in
thousands)
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
September 30,
2017
|
December 31,
2016
|
September 30,
2016
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
258,002
|
$
|
250,470
|
$
|
179,954
|
Accounts receivable,
net
|
733,292
|
622,685
|
713,731
|
Inventories
|
1,180,653
|
917,491
|
970,621
|
Prepaid expenses and
other current assets
|
284,895
|
174,507
|
162,255
|
Total current
assets
|
2,456,842
|
1,965,153
|
2,026,561
|
Property and
equipment, net
|
868,250
|
804,211
|
751,286
|
Goodwill
|
559,318
|
563,591
|
576,903
|
Intangible assets,
net
|
48,646
|
64,310
|
68,248
|
Deferred income
taxes
|
97,147
|
136,862
|
155,592
|
Other long term
assets
|
100,162
|
110,204
|
106,747
|
Total
assets
|
$
|
4,130,365
|
$
|
3,644,331
|
$
|
3,685,337
|
Liabilities and
Stockholders' Equity
|
|
|
Revolving credit
facility, current
|
$
|
270,000
|
$
|
—
|
$
|
250,000
|
Accounts
payable
|
482,897
|
409,679
|
254,222
|
Accrued
expenses
|
266,074
|
208,750
|
238,284
|
Current maturities of
long term debt
|
27,000
|
27,000
|
27,000
|
Other current
liabilities
|
54,455
|
40,387
|
87,744
|
Total current
liabilities
|
1,100,426
|
685,816
|
857,250
|
Long term debt, net
of current maturities
|
771,382
|
790,388
|
796,768
|
Other long term
liabilities
|
157,861
|
137,227
|
108,165
|
Total
liabilities
|
2,029,669
|
1,613,431
|
1,762,183
|
Total stockholders'
equity
|
2,100,696
|
2,030,900
|
1,923,154
|
Total liabilities
and stockholders' equity
|
$
|
4,130,365
|
$
|
3,644,331
|
$
|
3,685,337
|
Under Armour,
Inc.
|
For the Quarter Ended
September 30, 2017
|
(Unaudited)
|
|
The table below
presents the reconciliation of net revenue growth calculated in
accordance with GAAP to
currency neutral net
revenue which is a non-GAAP measure. See "Non-GAAP Financial
Information" above
for further
information regarding the Company's use of non-GAAP financial
measures.
|
|
CURRENCY NEUTRAL
NET REVENUE GROWTH/(DECLINE) RECONCILIATION
|
|
Total Net
Revenue
|
|
|
Net revenue decline -
GAAP
|
|
(4.5)
|
%
|
Foreign exchange
impact
|
|
(0.4)
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(4.9)
|
%
|
|
|
|
North
America
|
|
|
Net revenue decline -
GAAP
|
|
(12.1)
|
%
|
Foreign exchange
impact
|
|
(0.2)
|
%
|
Currency neutral net
revenue decline - Non-GAAP
|
|
(12.3)
|
%
|
|
|
|
EMEA
|
|
|
Net revenue growth -
GAAP
|
|
21.7
|
%
|
Foreign exchange
impact
|
|
(1.9)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
19.8
|
%
|
|
|
|
Asia-Pacific
|
|
|
Net revenue growth -
GAAP
|
|
51.9
|
%
|
Foreign exchange
impact
|
|
1.1
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
53.0
|
%
|
|
|
|
Latin
America
|
|
|
Net revenue growth -
GAAP
|
|
32.8
|
%
|
Foreign exchange
impact
|
|
(5.4)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
27.4
|
%
|
|
|
|
Total
International
|
|
|
Net revenue growth -
GAAP
|
|
34.9
|
%
|
Foreign exchange
impact
|
|
(1.3)
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
33.6
|
%
|
|
|
|
Connected
Fitness
|
|
|
Net revenue growth -
GAAP
|
|
15.9
|
%
|
Foreign exchange
impact
|
|
—
|
%
|
Currency neutral net
revenue growth - Non-GAAP
|
|
15.9
|
%
|
Under Armour,
Inc.
|
For the Quarter Ended
September 30, 2017
|
(Unaudited)
|
|
The tables below
present the reconciliation of gross margin calculated in accordance
with GAAP to adjusted gross margin, income from operations
calculated in accordance with GAAP to adjusted operating income,
diluted net income per share calculated in accordance with GAAP to
adjusted diluted earnings per share and effective tax rate
calculated in accordance with GAAP to adjusted effective tax
rate. Each of these adjusted amounts are non-GAAP financial
measures. See "Non-GAAP Financial Information" above for further
information regarding the Company's use of non-GAAP financial
measures.
|
|
ADJUSTED GROSS
MARGIN RECONCILIATION
|
|
Gross
margin
|
|
|
45.9%
|
Add: Impact of
restructuring
|
|
|
0.3%
|
Adjusted gross
margin
|
|
|
46.2%
|
|
ADJUSTED OPERATING
INCOME RECONCILIATION
|
|
Income from
operations
|
|
$
|
62
|
Add: Impact of
restructuring
|
|
|
89
|
Adjusted operating
income
|
|
$
|
151
|
|
ADJUSTED NET
INCOME RECONCILIATION
|
|
Net income
|
|
$
|
54
|
Add: Impact of
restructuring
|
|
|
46
|
Adjusted net
income
|
|
$
|
100
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE RECONCILIATION
|
|
Diluted net income
per share
|
|
$
|
0.12
|
Add: Estimated impact
of restructuring
|
|
|
0.10
|
Adjusted diluted
earnings per share
|
|
$
|
0.22
|
|
ADJUSTED EFFECTIVE
TAX RATE RECONCILIATION
|
|
|
|
Effective tax
rate
|
|
|
(5.3)%
|
Add: Impact of
restructuring
|
|
|
34.0%
|
Adjusted effective
tax rate
|
|
|
28.7%
|
Under Armour,
Inc.
|
Outlook For the Year
Ended December 31, 2017
|
|
|
|
The tables below
present the reconciliation of the Company's fiscal 2017 outlook for
gross margin calculated in accordance with GAAP to adjusted
gross margin and income from
operations calculated in accordance with GAAP to adjusted operating
income. Each of these adjusted
amounts are non-GAAP financial measures. See "Non-GAAP Financial
Information" above for further information regarding the Company's use of non-GAAP
financial measures.
|
|
|
ADJUSTED GROSS
MARGIN RECONCILIATION
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
44.2%
|
Add: Estimated impact
of restructuring
|
|
0.3%
|
Adjusted gross
margin
|
|
44.5%
|
|
ADJUSTED OPERATING
INCOME RECONCILIATION
|
|
|
(in
millions)
|
|
Income from
operations
|
$
|
—
|
$
|
10
|
Add: Estimated impact
of restructuring(1)
|
140
|
140
|
Adjusted operating
income
|
$
|
140
|
$
|
150
|
|
|
|
|
|
(1) The estimated
impact of restructuring plan presented above assumes the low end of
the Company's estimated range of
restructuring and related charges, which is $140-$150
million.
|
The company is not able to provide a reconciliation of the
non-GAAP adjusted effective tax rate or adjusted diluted earnings
per share to the GAAP effective tax rate or diluted earnings per
share for its 2017 outlook. As a result of the restructuring plan,
the company's GAAP net income for fiscal year 2017 is expected to
be insignificant, and therefore the GAAP effective tax rate is
subject to a significant variability. Given this variability, the
company cannot provide a meaningful outlook of the GAAP effective
tax rate or diluted earnings per share without unreasonable
effort. These non-GAAP measures exclude the impact of the
restructuring plan.
Under Armour,
Inc.
|
For the Quarter Ended
September 30, 2017
|
|
BRAND HOUSE AND
FACTORY HOUSE DOOR COUNT
|
|
|
|
|
|
As of September
30,
|
|
|
2017
|
|
2016
|
Factory
House
|
|
160
|
|
146
|
Brand
House
|
|
19
|
|
17
|
North
America total doors
|
|
179
|
|
163
|
|
|
|
|
|
Factory
House
|
|
50
|
|
32
|
Brand
House
|
|
51
|
|
31
|
International total doors
|
|
101
|
|
63
|
|
|
|
|
|
Factory
House
|
|
210
|
|
178
|
Brand
House
|
|
70
|
|
48
|
Total
doors
|
|
280
|
|
226
|
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SOURCE Under Armour, Inc.