Effective
We believe this new segment presentation provides improved visibility into the underlying performance and results of our five operating segments:
In conjunction with this change and today's announcement of the company's financial results for the first quarter ended
As a result of the change in segments, the company has updated its five-year segment operating profitability targets presented at its
Operating Income (Loss) Percentage by Segment |
|||
Year Ended December 31, 2018 |
December 12, 2018 2023 Target |
Updated 2023 Target |
|
North America |
19.2% |
+Mid-Single-digit |
+Low-to-Mid 20's |
Asia-Pacific |
18.6% |
+Mid-20's |
+Mid-20's |
EMEA |
5.1% |
+Mid-Teen |
+Mid-Teen |
Latin America |
(8.8)% |
+High Single-digit |
+High Single-digit |
Connected Fitness |
4.9% |
+Mid-Teen |
+Mid-Teen |
Corporate Other (2) |
NM |
NM |
NM |
Total |
(0.5)% |
~10% |
~10% |
(1) Reflects the unaudited recast of historical information provided below. |
(2) Operating income (loss) percentage for Corporate Other is not presented as it is not a meaningful metric (NM). |
About
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, the development and introduction of new products, the implementation of our marketing and branding strategies, and the future benefits and opportunities from 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 successfully execute our long-term strategies; our ability to realize expected benefits from our restructuring plans; our ability to effectively drive operational efficiency in our business; our ability to manage the increasingly complex operations of our global business; our ability to comply with existing trade and other regulations, and the potential impact of new trade, tariff and tax regulations on our profitability; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer demand for our products and manage our inventory in response to changing demands; any disruptions, delays or deficiencies in the design, implementation or application of our new global operating and financial reporting information technology system; increased competition causing us to lose market share or reduce the prices of our products or to increase significantly our marketing efforts; 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; our ability to successfully manage or realize expected results from acquisitions and other significant investments or capital expenditures; 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 of 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 Three Months Ended March 31, June 30, September 30 and December 31, 2018 and |
|||||||||||||||
For the Year Ended December 31, 2018 |
|||||||||||||||
(Unaudited; in thousands) |
|||||||||||||||
REVENUE BY SEGMENT |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
(in thousands) |
March 31, 2018 |
June 30, 2018 |
September 30, 2018 |
December 31, 2018 |
December 31, 2018 |
||||||||||
North America |
$ |
867,545 |
$ |
843,383 |
$ |
1,059,535 |
$ |
964,830 |
$ |
3,735,293 |
|||||
Asia-Pacific |
115,553 |
125,706 |
149,388 |
166,784 |
557,431 |
||||||||||
EMEA |
129,588 |
136,942 |
147,640 |
176,887 |
591,057 |
||||||||||
Latin America |
46,514 |
40,757 |
54,299 |
49,225 |
190,795 |
||||||||||
Connected Fitness |
28,826 |
29,112 |
32,160 |
30,259 |
120,357 |
||||||||||
Corporate Other |
(2,656) |
(1,041) |
(46) |
1,995 |
(1,748) |
||||||||||
Total |
$ |
1,185,370 |
$ |
1,174,859 |
$ |
1,442,976 |
$ |
1,389,980 |
$ |
5,193,185 |
REVENUE BY DIVISION |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
(in thousands) |
March 31, 2018 |
June 30, 2018 |
September 30, 2018 |
December 31, 2018 |
December 31, 2018 |
||||||||||
Apparel |
$ |
768,931 |
$ |
748,335 |
$ |
978,457 |
$ |
968,397 |
$ |
3,464,120 |
|||||
Footwear |
271,770 |
271,375 |
284,856 |
235,174 |
1,063,175 |
||||||||||
Accessories |
92,158 |
105,906 |
116,186 |
108,246 |
422,496 |
||||||||||
Total net sales |
1,132,859 |
1,125,616 |
1,379,499 |
1,311,817 |
4,949,791 |
||||||||||
Licensing |
26,341 |
21,172 |
31,363 |
45,909 |
124,785 |
||||||||||
Connected Fitness |
28,826 |
29,112 |
32,160 |
30,259 |
120,357 |
||||||||||
Corporate Other |
(2,656) |
(1,041) |
(46) |
1,995 |
(1,748) |
||||||||||
Total |
$ |
1,185,370 |
$ |
1,174,859 |
$ |
1,442,976 |
$ |
1,389,980 |
$ |
5,193,185 |
REVENUE BY CHANNEL |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
(in thousands) |
March 31, 2018 |
June 30, 2018 |
September 30, 2018 |
December 31, 2018 |
December 31, 2018 |
||||||||||
Wholesale |
$ |
781,248 |
$ |
711,449 |
$ |
914,225 |
$ |
735,061 |
$ |
3,141,983 |
|||||
Direct to consumer |
351,611 |
414,167 |
465,274 |
576,756 |
1,807,808 |
||||||||||
Total net sales |
1,132,859 |
1,125,616 |
1,379,499 |
1,311,817 |
4,949,791 |
||||||||||
Licensing |
26,341 |
21,172 |
31,363 |
45,909 |
124,785 |
||||||||||
Connected Fitness |
28,826 |
29,112 |
32,160 |
30,259 |
120,357 |
||||||||||
Corporate Other |
(2,656) |
(1,041) |
(46) |
1,995 |
(1,748) |
||||||||||
Total |
$ |
1,185,370 |
$ |
1,174,859 |
$ |
1,442,976 |
$ |
1,389,980 |
$ |
5,193,185 |
OPERATING INCOME (LOSS) BY SEGMENT |
|||||||||||||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||||||||||||
(in thousands) |
March 31, |
% of Net |
June 30, |
% of Net |
September |
% of Net |
December |
% of Net |
December |
% of Net |
|||||||||||||||
North America |
$ |
148,185 |
17.1 |
% |
$ |
132,529 |
15.7 |
% |
$ |
253,706 |
23.9 |
% |
$ |
183,775 |
19.0 |
% |
$ |
718,195 |
19.2 |
% |
|||||
Asia-Pacific |
24,122 |
20.9 |
% |
21,391 |
17.0 |
% |
36,579 |
24.5 |
% |
21,435 |
12.9 |
% |
103,527 |
18.6 |
% |
||||||||||
EMEA |
7,154 |
5.5 |
% |
(5,945) |
(4.3) |
% |
16,726 |
11.3 |
% |
12,453 |
7.0 |
% |
30,388 |
5.1 |
% |
||||||||||
Latin America |
(1,878) |
(4.0) |
% |
(4,689) |
(11.5) |
% |
(3,772) |
(6.9) |
% |
(6,540) |
(13.3) |
% |
(16,879) |
(8.8) |
% |
||||||||||
Connected Fitness |
3,411 |
11.8 |
% |
1,711 |
5.9 |
% |
2,132 |
6.6 |
% |
(1,306) |
(4.3) |
% |
5,948 |
4.9 |
% |
||||||||||
Corporate Other |
(209,655) |
NM |
(249,872) |
NM |
(186,405) |
NM |
(220,264) |
NM |
(866,196) |
NM |
|||||||||||||||
Total |
$ |
(28,661) |
(2.4) |
% |
$ |
(104,875) |
(8.9) |
% |
$ |
118,966 |
8.2 |
% |
$ |
(10,447) |
(0.8) |
% |
$ |
(25,017) |
(0.5) |
% |
NOTE: Operating income (loss) percentage for Corporate Other is not presented as it is not a meaningful metric (NM). Additionally, Corporate Other includes approximately $204 million in charges related to the Company's 2018 Restructuring Plan. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/under-armour-announces-new-reporting-segment-300842255.html
SOURCE
Lance Allega, SVP, Investor Relations & Corporate Development, (410) 246-6810; Kelley McCormick, SVP, Corporate Communications, (410) 454-6624