Under Armor fourth quarter revenue increases 9%
Under Armour, Inc.’s fourth-quarter revenue increased 9% or 8% currency-neutral to $1.5 billion from a year earlier.
Net income for the quarter was $110 million and adjusted net income was $67 million. The company reported diluted earnings per share of 23 cents and adjusted diluted earnings per share of 14 cents.
“The last quarter of 2021 demonstrated the power and consistency of Under Armour’s strategy playbook, which allowed us to capitalize on improving brand strength and consumer demand. operational excellence and meeting the needs of athletes, we were able to deliver record revenue and results for the full year,” said Patrik Frisk, President and CEO of Under Armour.
Under Armor fourth quarter review
The company said wholesale revenue rose 16% to $768 million and direct-to-consumer revenue rose 10% to $720 million, driven by strong performance at company-owned and operated stores. and 4% growth in e-commerce, which accounted for 42% of total direct-to-consumer business in the quarter.
North America revenue increased 15% to $1.1 billion and international revenue increased 3% or 2% currency neutral to $461 million. Within the international business, revenue increased 24% or 23% currency neutral in EMEA, decreased 6% or 7% currency neutral in Asia Pacific and decreased 22% or 23% currency neutral in Latin America.
Apparel revenue rose 18% to $1.1 billion, footwear revenue rose 17% to $283 million, while accessories revenue fell 27% to $107 million .
Gross margin increased 130 basis points to 50.7% from a year ago, operating profit was $86 million, and adjusted operating profit was $100 million.
Under Armor’s annual revenue increases by 27%
For the full year, the company’s revenue increased 27% or 25% currency neutral to $5.7 billion from a year earlier.
Wholesale revenue increased 36% to $3.2 billion and direct-to-consumer revenue increased 26% to $2.3 billion, driven by strong performance at owned stores and operated by the company and a 4% increase in e-commerce, which accounted for 39% of the total. direct-to-consumer business in 2021. Company North America revenue increased 29% to $3.8 billion and international revenue increased 34% or 28% currency neutral to $1 $.9 billion.
Within the international business, revenue increased 41% or 35% without currency in EMEA, increased 32% or 26% without currency in Asia Pacific and increased 18% or 14 % without currency in Latin America.
Apparel revenue increased 33% to $3.8 billion, footwear revenue increased 35% to $1.3 billion and accessories revenue increased 12% to $462 million .
Gross margin for the year increased by 210 basis points to 50.3% compared to the prior year, while adjusted gross margin increased by 180 basis points to 50.4%.
Operating income was $486 million and adjusted operating income was $527 million. Net income was $360 million, adjusted net income was $397 million, while diluted earnings per share was 77 cents and adjusted diluted earnings per share was 85 cents.
Under Armor provides outlook for transition quarter ending March 31, 2022
Armor’s outlook for the transition quarter ending March 31, 2022, compared to the same calendar period in fiscal 2021, expects revenue to grow in the mid-single digits from last year. previous expectation of a low single-digit rate hike. This expectation includes approximately 10 percentage points of headwinds related to reductions in our Spring/Summer 2022 backlog due to supply constraints associated with the current impacts of the Covid-19 pandemic.
Gross margin is expected to be down 200 basis points from adjusted gross margin in the prior year period. This expectation includes approximately 240 basis points of negative impact due to higher freight costs resulting from the current Covid-19 supply chain challenges in addition to an unfavorable sales mix, partially offset by benefits tariffs.
Operating profit is expected to be around $30 million to $35 million and diluted earnings per share are expected to be 2 cents to 3 cents.