Under Armour About UA

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08.03.21

Under Armour Reports Second Quarter 2021 Results; Raises Full Year Outlook

BALTIMORE, Aug. 3, 2021 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced unaudited financial results for the second quarter ended June 30, 2021. 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.

"We are very pleased with Under Armour's better than expected second-quarter results, which reflect solid progress compared to both 2020 and 2019. Given the continued momentum, we're raising our full-year outlook, which puts us on track to achieving a solid performance in 2021," said Under Armour President and CEO Patrik Frisk. "With the critical mass of our transformation behind us and the continued improvements across product, marketing, and our financial results, I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth."

Frisk concluded, "At the halfway point of our fiscal year, I'm confident in our ability to execute our strategy by putting Focused Performers at the center of everything we do and increasing our capacity to drive consistent, profitable growth for our shareholders over the long-term."

Second Quarter 2021 Review

  • Revenue was up 91 percent to $1.4 billion (up 85 percent currency neutral) compared to the prior year.
    • Wholesale revenue increased 157 percent to $768 million and direct-to-consumer revenue increased 52 percent to $561 million, driven by strong growth in owned and operated stores offset by an 18 percent decline in eCommerce which represented 39 percent of the total direct-to-consumer business.
    • North America revenue increased 101 percent to $905 million and international revenue increased 100 percent to $446 million (up 84 percent currency neutral). Within the international business, revenue increased 133 percent in EMEA (up 116 percent currency neutral), increased 56 percent in Asia-Pacific (up 43 percent currency neutral), and increased 317 percent in Latin America (up 284 percent currency neutral).
    • Apparel revenue increased 105 percent to $874 million. Footwear revenue increased 85 percent to $343 million. Accessories revenue increased 99 percent to $112 million.
  • Gross margin increased 20 basis points to 49.5 percent compared to the prior year, driven primarily by benefits from pricing and changes in foreign currency, offset by channel mix, and the sale of the MyFitnessPal platform, which carried a higher gross margin rate.
  • Selling, general & administrative expenses increased 14 percent to $545 million primarily due to increased marketing expenses and costs associated with the company's owned and operated stores, which were closed most of last year's comparable period due to the COVID-19 pandemic.
  • Restructuring charges were $3 million.
  • Operating income was $121 million. Adjusted operating income was $124 million.
  • Net income was $59 million. Adjusted net income was $110 million.
  • Diluted earnings per share was $0.13. Adjusted diluted earnings per share was $0.24.
  • Inventory was down 26 percent to $881 million.
  • Cash and Cash Equivalents were $1.3 billion at the end of the quarter, and no borrowings were outstanding under the company's $1.1 billion revolving credit facility.

Updated 2021 Outlook

Key points related to Under Armour's full-year 2021 outlook include:

  • Revenue is expected to be up at a low twenties percentage rate compared to the previous expectation of a high-teens percentage rate increase, reflecting a low twenties percentage growth rate in North America and a mid-thirties percentage growth rate in the international business.
  • Gross margin is expected to increase 50 to 70 basis points compared to the previous expectation of an approximate 50 basis point improvement versus the prior year adjusted gross margin of 48.6 percent with expected benefits from pricing and changes in foreign currency offset by the sale of the MyFitnessPal platform and expected higher freight expenses.
  • Operating income is expected to reach $215 million to $225 million compared to the previous range of $105 million to $115 million. Excluding the impact of restructuring efforts, adjusted operating income is expected to reach $340 million to $350 million compared to the previous expectation of $230 million to $240 million.
  • Diluted earnings per share are expected to be $0.14 to $0.16 compared to the previous expectation of a diluted loss per share of $0.02 to $0.04. Adjusted diluted earnings per share are expected to reach $0.50 to $0.52 compared to the previously expected range of $0.28 to $0.30 per share.

2020 Restructuring Plan

In April 2020, Under Armour announced a restructuring plan designed to rebalance its cost base to improve profitability and cash flow. Of the estimated $550 million to $600 million restructuring plan range, the company has recognized $483 million of pre-tax charges, including $3 million in the second quarter of 2021, or $10 million year-to-date. Of the $483 million recognized, there has been $130 million in cash-related charges and $353 million in non-cash-related charges. The company expects to recognize approximately $40 million to $50 million in charges related to this plan in the third quarter.

COVID-19 Update

Under Armour remains focused on protecting teammate and consumer health and safety while working with its suppliers, partners, and customers to navigate potential disruptions. Given continued uncertainty related to COVID-19, particularly the ongoing and evolving impact on the company's suppliers and logistics providers, there could be material impacts on Under Armour's full-year business results in 2021.

Conference Call and Webcast

Under Armour will hold its second-quarter conference call and webcast today at approximately 8:30 a.m. Eastern Time. The call will be webcast live at https://about.underarmour.com/investor-relations/financials and will be archived and available for replay about 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 2021 outlook. Management believes this information is useful to investors to compare the company's results of operations period-over-period because it enhances visibility into its actual underlying results, excluding these impacts. Currency-neutral financial information is calculated to exclude the effect of changes in foreign currency exchange rates. References to adjusted financial measures exclude the impact of the company's 2020 restructuring plan and related impairment charges, impairments associated with certain long-lived assets and goodwill and related tax effects, and with respect to certain measures, the non-cash amortization of debt discount and any gain or loss from the extinguishment of the company's convertible senior notes, and related tax effects. Where applicable, adjusted net income (loss) and adjusted diluted income (loss) per share exclude the non-cash amortization of debt discount on the company's convertible senior notes and any gain or loss from the extinguishment of the company's convertible senior notes and related tax effects. Management believes the gain or loss from the extinguishment of the company's convertible senior notes and the non-cash portion of the interest expense, which represents the accretion of the bifurcated equity component of the convertible senior notes' conversion option, is not core to the company's operations. The reconciliation of non-GAAP amounts to the most directly comparable financial measure calculated according to GAAP is presented in supplemental financial information furnished with this release. All per share amounts are reported on a diluted basis. These supplemental non-GAAP financial measures should not be considered in isolation and should be contemplated in addition to, and not as an alternative for, the company's reported results prepared per 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 inventor, marketer and distributor of branded athletic performance apparel, footwear and accessories. Designed to empower human performance, Under Armour's innovative products and experiences are engineered to make athletes better. For further information, please visit http://about.underarmour.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, the impact of the COVID-19 pandemic on our business and results of operations and the operations of our suppliers and logistics providers, our plans to reduce our operating expenses, anticipated charges and restructuring costs, projected savings related to our restructuring plans and the timing thereof, 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," "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, activity levels, 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: the impact of the COVID-19 pandemic on our industry and our business, financial condition and results of operations; changes in general economic or market conditions that could affect overall consumer spending or our industry; 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 raw materials and commodities we use in our products and our supply chain; failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner; changes to the financial health of our customers; our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business and successfully execute any restructuring plans and realize their expected benefits; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer shopping preferences and consumer demand for our products and manage our inventory in response to changing demands; loss of key customers, suppliers or manufacturers; 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 manage the increasingly complex operations of our global business; our ability to successfully manage or realize expected results from significant transactions and investments; 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; any disruptions, delays or deficiencies in the design, implementation or application of our global operating and financial reporting information technology system; our ability to attract key talent and retain the services of our senior management and key employees; our ability to access capital and financing required to manage our business on terms acceptable to us; 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 comply with existing trade and other regulations, and the potential impact of new trade, tariff and tax regulations on our profitability; risks related to data security or privacy breaches; and our potential exposure to litigation and other proceedings. 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 and Six Months Ended June 30, 2021 and 2020

(Unaudited; in thousands, except per share amounts)


CONSOLIDATED STATEMENTS OF OPERATIONS




Three Months Ended June 30,


Six Months Ended June 30,

in '000s


2021


% of Net
Revenues


2020


% of Net
Revenues


2021


% of Net
Revenues


2020


% of Net
Revenues

Net revenues


$

1,351,534



100.0

%


$

707,640



100.0

%


$

2,608,729



100.0

%


$

1,637,880



100.0

%

Cost of goods sold


682,713



50.5

%


358,471



50.7

%


1,311,267



50.3

%


857,727



52.4

%

Gross profit


668,821



49.5

%


349,169



49.3

%


1,297,462



49.7

%


780,153



47.6

%

Selling, general and administrative
expenses


545,003



40.3

%


479,906



67.8

%


1,059,641



40.6

%


1,032,607



63.0

%

Restructuring and impairment
charges


2,613



0.2

%


38,937



5.5

%


9,726



0.4

%


475,400



29.0

%

Income (loss) from operations


121,205



9.0

%


(169,674)



(24.0)

%


228,095



8.7

%


(727,854)



(44.4)

%

Interest income (expense), net


(13,307)



(1.0)

%


(11,336)



(1.6)

%


(27,444)



(1.1)

%


(17,296)



(1.1)

%

Other income (expense), net


(38,494)



(2.8)

%


(4,843)



(0.7)

%


(45,674)



(1.8)

%


(3,309)



(0.2)

%

Income (loss) before income taxes


69,404



5.1

%


(185,853)



(26.3)

%


154,977



5.9

%


(748,459)



(45.7)

%

Income tax expense (benefit)


10,027



0.7

%


(3,137)



(0.4)

%


19,908



0.8

%


18,410



1.1

%

Income (loss) from equity method
investments


(170)



%


(179)



%


1,890



0.1

%


(5,707)



(0.3)

%

Net income (loss)


$

59,207



4.4

%


$

(182,895)



(25.8)

%


$

136,959



5.3

%


$

(772,576)



(47.2)

%


















Basic net income (loss) per share of
Class A, B and C common stock


$

0.13





$

(0.40)





$

0.30





$

(1.70)




Diluted net income (loss) per share of
Class A, B and C common stock


$

0.13





$

(0.40)





$

0.30





$

(1.70)




Weighted average common shares outstanding Class A, B and C common stock

Basic


459,604





454,121





457,793





453,496




Diluted


462,286





454,121





460,740





453,496




 

Under Armour, Inc.

For the Three and Six Months Ended June 30, 2021 and 2020

(Unaudited; in thousands)


NET REVENUES BY PRODUCT CATEGORY




Three Months Ended June 30,


Six Months Ended June 30,

in '000s


2021


2020


% Change


2021


2020


% Change

Apparel


$

874,193



$

425,858



105.3

%


$

1,684,234



$

1,024,145



64.5

%

Footwear


342,641



185,089



85.1

%


651,688



394,777



65.1

%

Accessories


111,503



56,104



98.7

%


228,899



123,852



84.8

%

Total net sales


1,328,337



667,051



99.1

%


2,564,821



1,542,774



66.2

%

Licensing revenues


23,261



6,188



275.9

%


44,918



26,123



71.9

%

Corporate Other (1)


(64)



34,401



(100.2)

%


$

(1,010)



$

68,983



(101.5)

%

Total net revenues


$

1,351,534



$

707,640



91.0

%


$

2,608,729



$

1,637,880



59.3

%

 

NET REVENUES BY SEGMENT




Three Months Ended June 30,


Six Months Ended June 30,

in '000s


2021


2020


% Change


2021


2020


% Change

North America


$

905,493



$

449,702



101.4

%


$

1,711,220



$

1,058,682



61.6

%

EMEA


207,224



89,125



132.5

%


401,107



227,029



76.7

%

Asia-Pacific


192,369



123,265



56.1

%


402,589



218,951



83.9

%

Latin America


46,512



11,147



317.3

%


94,823



64,235



47.6

%

Corporate Other (1)


(64)



34,401



(100.2)

%


(1,010)



$

68,983



(101.5)

%

Total net revenues


$

1,351,534



$

707,640



91.0

%


$

2,608,729



$

1,637,880



59.3

%

 

INCOME (LOSS) FROM OPERATIONS




Three Months Ended June 30,


Six Months Ended June 30,

in '000s


2021

% of Net
Revenues (2)


2020

% of Net
Revenues (2)


2021

% of Net
Revenues (2)


2020


% of Net
Revenues (2)


North America


$

225,769


24.9

%


$

30,759


6.8

%


$

436,331


25.5

%


$

26,986



2.5

%


EMEA


39,892


19.3

%


(698)


(0.8)

%


66,578


16.6

%


3,006



1.3

%


Asia-Pacific


24,046


12.5

%


(12,447)


(10.1)

%


70,559


17.5

%


(49,288)



(22.5)

%


Latin America


6,001


12.9

%


(4,374)


(39.2)

%


7,458


7.9

%


(52,558)



(81.8)

%


Corporate Other(1)


(174,503)


NM


(182,914)


NM


(352,831)


NM


(656,000)



NM


Income (loss) from
operations


$

121,205


9.0

%


$

(169,674)


(24.0)

%


$

228,095


8.7

%


$

(727,854)



(44.4)

%


 

(1) Corporate Other primarily includes foreign currency hedge gains and losses related to revenues generated by entities within the Company's operating segments but managed through the Company's central foreign exchange risk management program. Prior to Fiscal 2021, the Company's Connected Fitness segment was separately disclosed, however, effective January 1, 2021, Corporate Other now includes the remaining Connected Fitness business consisting of MMR for Fiscal 2021 and the entire Connected Fitness business for Fiscal 2020.  All prior periods were recast to conform to the current period presentation. Such reclassifications did not affect total consolidated net revenues, consolidated income from operations or consolidated net income


(2) Operating income (loss) percentage is calculated based on total segment net revenues. Additionally, the operating income (loss) percentage for Corporate Other is not presented as a meaningful metric (NM).

 

Under Armour, Inc.

As of June 30, 2021, December 31, 2020 and June 30, 2020

(Unaudited; in thousands)


CONDENSED CONSOLIDATED BALANCE SHEETS


in '000s


June 30, 2021


December 31, 2020


June 30, 2020

Assets







Current assets







Cash and cash equivalents


$

1,349,793



$

1,517,361



$

1,079,409


Accounts receivable, net


639,176



527,340



568,430


Inventories


881,117



895,974



1,198,509


Prepaid expenses and other current assets, net


273,099



282,300



242,661


Total current assets


3,143,185



3,222,975



3,089,009


Property and equipment, net


619,116



658,678



702,885


Operating lease right-of-use assets


493,014



536,660



568,010


Goodwill


499,541



502,214



486,868


Intangible assets, net


12,110



13,295



38,748


Deferred income taxes


25,046



23,930



42,589


Other long term assets


79,497



72,876



75,232


Total assets


$

4,871,509



$

5,030,628



$

5,003,341


Liabilities and Stockholders' Equity







Revolving credit facility, current


$



$



$

250,000


Accounts payable


613,566



575,954



664,288


Accrued expenses


346,530



378,859



266,399


Customer refund liabilities


179,407



203,399



199,016


Operating lease liabilities


145,014



162,561



148,408


Other current liabilities


77,445



92,503



90,503


Total current liabilities


1,361,962



1,413,276



1,618,614


Long term debt, net of current maturities


804,621



1,003,556



987,949


Operating lease liabilities, non-current


757,540



839,414



892,465


Other long term liabilities


100,676



98,389



80,899


Total liabilities


3,024,799



3,354,635



3,579,927


Total stockholders' equity


1,846,710



1,675,993



1,423,414


Total liabilities and stockholders' equity


$

4,871,509



$

5,030,628



$

5,003,341


 

Under Armour, Inc.

For the Six Months Ended June 30, 2021 and 2020

(Unaudited; in thousands)


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



Six Months Ended June 30,

in '000s

2021


2020

Cash flows from operating activities




Net income (loss)

$

136,959



$

(772,576)


Adjustments to reconcile net income (loss) to net cash used in operating activities




Depreciation and amortization

70,659



86,919


Unrealized foreign currency exchange rate gain (loss)

12,224



(1,134)


Loss on extinguishment of senior convertible notes

34,728




Loss on disposal of property and equipment

1,395



825


Non-cash restructuring and impairment charges

5,588



449,090


Amortization of bond premium

16,337



1,867


Stock-based compensation

21,905



23,258


Deferred income taxes

(1,008)



22,296


Changes in reserves and allowances

(18,429)



19,772


Changes in operating assets and liabilities:




Accounts receivable

(105,690)



126,059


Inventories

22,384



(307,430)


Prepaid expenses and other assets

3,358



77,368


Other non-current assets

38,930



(301,523)


Accounts payable

27,240



46,449


Accrued expenses and other liabilities

(145,488)



230,670


Customer refund liabilities

(24,430)



(18,630)


Income taxes payable and receivable

5,573



7,310


Net cash provided by (used in) operating activities

102,235



(309,410)


Cash flows from investing activities




Purchases of property and equipment

(28,133)



(50,862)


Sale of property and equipment

1,046




Purchase of businesses



(38,190)


Net cash used in investing activities

(27,087)



(89,052)


Cash flows from financing activities




Proceeds from long term debt and revolving credit facility



1,288,753


Payments on long term debt and revolving credit facility

(300,001)



(550,000)


Proceeds from capped call

53,000




Purchase of capped call



(47,850)


Employee taxes paid for shares withheld for income taxes

(4,510)



(2,732)


Proceeds from exercise of stock options and other stock issuances

947



2,859


Payments of debt financing costs



(4,823)


Net cash provided by (used in) financing activities

(250,564)



686,207


Effect of exchange rate changes on cash, cash equivalents and restricted cash

8,781



4,351


Net increase in (decrease in) cash, cash equivalents and restricted cash

(166,635)



292,096


Cash, cash equivalents and restricted cash




Beginning of period

1,528,515



796,008


End of period

$

1,361,880



$

1,088,104


 

Under Armour, Inc.

For the Three Months and Six Months Ended June 30, 2021 

(Unaudited)


The table below presents the reconciliation of net revenue growth (decline) calculated according to GAAP to currency neutral net revenue 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




Three months ended
June 30, 2021


Six months ended June
30, 2021

Total Net Revenue





Net revenue growth - GAAP


91.0

%


59.3

%

Foreign exchange impact


(6.1)

%


(4.2)

%

Currency neutral net revenue growth - Non-GAAP


84.9

%


55.1

%






North America





Net revenue growth - GAAP


101.4

%


61.6

%

Foreign exchange impact


(1.9)

%


(1.0)

%

Currency neutral net revenue growth - Non-GAAP


99.5

%


60.6

%






EMEA





Net revenue growth - GAAP


132.5

%


76.7

%

Foreign exchange impact


(16.6)

%


(11.1)

%

Currency neutral net revenue growth - Non-GAAP


115.9

%


65.6

%






Asia-Pacific





Net revenue growth - GAAP


56.1

%


83.9

%

Foreign exchange impact


(13.1)

%


(13.0)

%

Currency neutral net revenue growth - Non-GAAP


43.0

%


70.9

%






Latin America





Net revenue growth - GAAP


317.3

%


47.6

%

Foreign exchange impact


(33.4)

%


(4.4)

%

Currency neutral net revenue growth - Non-GAAP


283.9

%


43.2

%






Total International





Net revenue growth - GAAP


99.6

%


76.1

%

Foreign exchange impact


(15.5)

%


(11.0)

%

Currency neutral net revenue growth - Non-GAAP


84.1

%


65.1

%

 

Under Armour, Inc.

For the Three Months Ended June 30, 2021 

(Unaudited; in thousands, except per share amounts)


The tables below present the reconciliation of the Company's condensed consolidated statement of operations presented in accordance with GAAP to certain adjusted non-GAAP financial measures discussed in this press release. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-GAAP financial measures.


ADJUSTED OPERATING INCOME RECONCILIATION


in '000s


Three months ended
June 30, 2021

GAAP Income from operations


$

121,205


Add: Impact of restructuring charges


2,613


Add: Impact of restructuring charges recorded under cost of goods sold


$

408


Adjusted income from operations


$

124,226




ADJUSTED NET INCOME RECONCILIATION


in '000s


Three months ended
June 30, 2021

GAAP Net income


$

59,207


Add: Impact of restructuring charges


2,613


Add: Impact of restructuring charges recorded under cost of goods sold


408


Add: Impact of amortization of debt discount


4,568


Add: Impact of loss on extinguishment of convertible senior notes


34,728


Add: Impact of provision for income taxes


8,498


Adjusted net income


$

110,022




ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION




Three months ended
June 30, 2021

GAAP Diluted net income per share


$

0.13


Add: Impact of restructuring charges


0.01


Add: Impact of restructuring charges recorded under cost of goods sold



Add: Impact of amortization of debt discount


0.01


Add: Impact of loss on extinguishment of convertible senior notes


0.08


Add: Impact of provision for income taxes


0.01


Adjusted diluted income per share


$

0.24


 

Under Armour, Inc.

Outlook for the Three Months Ending September 30, 2021 and Year Ending December 31, 2021

(Unaudited; in millions, except per share amounts)


The table below presents the reconciliation of the Company's fiscal 2021 outlook for income from operations calculated in accordance with GAAP to adjusted operating income, which is a non-GAAP financial measure. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-GAAP financial measures.


ADJUSTED OPERATING INCOME RECONCILIATION


(in millions)


Three Months Ending September 30,
2021


Year Ending December 31, 2021



Low end of estimate

High end of
estimate


Low end of estimate

High end of
estimate

GAAP Income (loss) from operations


$

45


$

55



$

215


$

225


Add: Estimated impact of restructuring and
impairment charges (1)


50


50



125


125


Adjusted income (loss) from operations


$

95


$

105



$

340


$

350


 

ADJUSTED OPERATING MARGIN RECONCILIATION




Three Months Ending September 30,
2021


Year Ending December 31, 2021



Low end of estimate

High end of
estimate


Low end of estimate

High end of
estimate

GAAP Operating margin


3.1

%

3.7

%


4.0

%

4.1

%

Add: Estimated impact of restructuring and
impairment charges (1)


3.5

%

3.4

%


2.3

%

2.3

%

Adjusted operating margin


6.6

%

7.1

%


6.3

%

6.4

%

 

ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION




Three Months Ending September 30,
2021


Year Ending December 31, 2021



Low end of estimate

High end of
estimate


Low end of estimate

High end of
estimate

GAAP Diluted net income (loss) per share


$

0.04


$

0.06



$

0.14


$

0.16


Add: Impact of restructuring and impairment
charges (1)


0.11


0.11



0.27


0.27


Add: Impact of amortization of debt discount


0.01


0.01



0.03


0.03


Add: Impact of loss on extinguishment of
convertible senior notes





0.08


0.08


Add: Impact of tax expense related to items
noted above


(0.03)


(0.03)



(0.02)


(0.02)


Adjusted diluted income per share


$

0.13


$

0.15



$

0.50


$

0.52


 

(1) Under the Company's 2020 restructuring plan's approved range of $550 million to $600 million, approximately $483 million of cumulative charges have been recognized as of June 30, 2021.  The impact of total charges to be recognized for the third quarter and the full year Fiscal 2021 presented above assumes the high-end of the estimated remaining charges included in this press release.

 

Under Armour, Inc.

As of June 30, 2021 and 2020


BRAND HOUSE AND FACTORY HOUSE DOOR COUNT




June 30,



2021


2020

Factory House


178


170

Brand House


17


18

   North America total doors


195


188






Factory House


137


116

Brand House


95


123

   International total doors


232


239






Factory House


315


286

Brand House


112


141

   Total doors


427


427

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/under-armour-reports-second-quarter-2021-results-raises-full-year-outlook-301346428.html

SOURCE Under Armour, Inc.

Lance Allega, SVP, Investor Relations & Corporate Development, (410) 246-6810; Blake Simpson, SVP, Global Communications, Community Impact & Events, (443) 630-9959

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