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Under Armour Crashes 25% Following Q4 Report

Under Armour Crashes 25% Following Q4 Report

Shares of Under Armour Inc (NYSE: UAA) tanked more than 25 percent Tuesday morning after the company reported fourth quarter results.

Under Armour earned $0.23 per share in the fourth quarter on revenue of $1.3 billion. Wall Street analysts were expecting the company to earn $0.25 per share on revenue of $1.41 billion. Net income for the quarter fell 1 percent from the same quarter a year ago to $105 million.

At least one Wall Street analyst was recommending investors sit on the sidelines until after the earnings print.

Under Armour also announced its Chief Financial Officer Chip Molly will leave the company due to personal reasons and will be replaced with David Bergman who currently holds the title of senior vice president of corporate finance.

"We are incredibly proud that in 2016, we once again posted record revenue and earnings, however, numerous challenges and disruptions in North American retail tempered our fourth quarter results," said CEO Kevin Plank. "The strength of our Brand, an unparalleled connection with our consumers and the continuation of investments in our fastest growing businesses -- footwear, international and direct-to-consumer -- give us great confidence in our ability to navigate the current retail environment, execute against our long-term growth strategy and create value to our shareholders."

Q4 Highlights

  • Total revenue rose 12 percent from a year ago.
  • Wholesale revenue rose 5 percent to $742 million.25%
  • Direct-to-consumer revenue rose 23 percent to $518 million.
  • North American revenue rose 6 percent.
  • International revenue rose 55 percent and represented 16 percent of total revenue.
  • Apparel revenue rose 7 percent to $929 million.
  • Footwear revenue rose 36 percent to $228 million.
  • Accessories revenue rose 7 percent to $104 million.
  • Gross margin fell to 44.8 percent from 48 percent a year ago.

2017 Guidance

  • Under Armour expects total revenue to grow between 11 and 12 percent to $5.4 billion.
  • Wall Street analysts were already estimating Under Armour's revenue to be $4.93 billion.
  • Gross margin is expected to be "slight down" compared to 2016.
  • Operating income is expected to decline to $320 million from $420 million.

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Posted-In: Apparel Companies apparel stocks Kevin Plank under armourEarnings News Guidance Movers Best of Benzinga

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