Under Armour Stock Price, News & Analysis

Under Armour announced it has entered into accelerated share repurchase agreements with JPMorgan Chase, Bank of America, and Citibank to repurchase $300 million of its Class C common stock. The company will pay $300 million upfront and receive an initial delivery of approximately 16.2 million shares, with remaining shares expected by May 2022. This action reflects Under Armour's commitment to returning value to shareholders, with an additional $200 million share repurchase authorization available post-completion.

Under Armour has authorized a $500 million share repurchase of its Class C common stock, effective immediately. This decision reflects the company's commitment to enhance shareholder value while preserving the financial flexibility for future growth opportunities. Repurchases may occur over the next two years through various methods, with timing and amount at management's discretion based on market conditions. CEO Patrik Frisk emphasized the buyback as a strategic means to deploy cash effectively.

Under Armour reported a 9% rise in Q4 2021 revenue to $1.5 billion, achieving $5.7 billion for the full year, up 27%. Direct-to-consumer sales increased 10%, while wholesale grew by 16%. Apparel and footwear segments saw notable revenue increases of 18% and 17%, respectively. Gross margin improved to 50.7%, though SG&A expenses rose 15%. The company projects mid-single-digit revenue growth for Q1 2022 but anticipates a 200 basis point decline in gross margin due to supply chain challenges. Adjusted EPS for Q4 was $0.14, with a full-year EPS of $0.85.

Under Armour, Inc. (NYSE: UA, UAA) will release its fourth quarter and fiscal year results for the period ending December 31, 2021, on February 11, 2022, at 6:55 a.m. ET. A conference call hosted by Under Armour management will follow at approximately 8:30 a.m. ET to discuss the results. The call will be available for live webcast and replay on their investor relations site.

Under Armour (NYSE: UA, UAA) has migrated its SAP workloads to Amazon Web Services (AWS), enhancing reliability and scalability. This strategic move aims to improve operational efficiency across various business functions, including design, manufacturing, and sales. With the migration, Under Armour can leverage AWS's capabilities in analytics and machine learning to optimize product innovation and enhance consumer experiences. The transition was completed in under six months, utilizing AWS's Professional Services for a robust disaster recovery solution.

Under Armour reported third-quarter 2021 results with an 8% revenue increase to $1.5 billion. Direct-to-consumer revenue rose 12%, while wholesale revenue grew 10%. North America revenue was up 8%, and international revenue surged 18%. Apparel revenue increased 14%, but accessories revenue dropped 13%. Gross margin improved to 51%, though operational expenses rose 8% to $599 million. The company raised its full-year revenue outlook to approximately 25% growth. Adjusted diluted EPS is now expected to be around $0.74. COVID-19 disruptions remain a concern.

Under Armour, Inc. plans to announce its third-quarter earnings for the period ending September 30, 2021, on November 2, 2021, at 6:55 a.m. ET. A conference call to discuss the results will follow at approximately 8:30 a.m. ET. This event will also be available via a live webcast, with a replay offered approximately three hours after its conclusion. Under Armour continues to position itself as a leader in branded athletic performance apparel and footwear, focused on enhancing athlete performance.

Under Armour (NYSE: UA, UAA) announced the appointment of Massimo Baratto as the new Chief Consumer Officer, effective November 1. Previously the Managing Director for EMEA, Baratto’s new role will focus on enhancing Under Armour's consumer strategy, overseeing global marketing, eCommerce, and retail. Kara Trent will succeed him as the Senior Vice President/General Manager of EMEA. Additionally, Alessandro de Pestel, the Chief Marketing Officer, will depart in February 2022. This leadership change aims to strengthen Under Armour's market position.

Under Armour announced an agreement to exchange approximately $169.1 million of its 1.50% Convertible Senior Notes due 2024 for cash and Class C common stock. This exchange affects about 68% of the principal amount of the 2024 Notes, leaving $80.9 million outstanding. The deal will reduce annual interest payments by about $2.5 million.

Additionally, Under Armour entered into termination agreements for capped call transactions, enabling cash settlements linked to the stock's price, effective from August 23, 2021.