Executive Summary
Under Armour reported QQ4 2024 revenue of $1.332 billion, up 1.15% year-over-year, but showed a narrow GAAP loss for the quarter with a net income near breakeven (-$0.26 million) and an operating loss of $6.46 million. The quarter was characterized by a sizable working capital impact: accounts receivable and inventory movements, alongside payables, weighed on cash from operations, resulting in negative operating cash flow of $139.1 million and negative free cash flow of $156.7 million. Despite a solid gross margin of approximately 45%, driven by product mix and channel dynamics, the company continued to incur elevated selling, general and administrative expenses that kept operating margins negative (-0.48%). The balance sheet remains liquidity-adequate, with approximately $859 million in cash and cash equivalents and total debt of about $1.44 billion, yielding a net debt position of roughly $584 million. Key liquidity metrics include a current ratio around 2.46 and a debt-to-capitalization ratio near 0.40, supporting near-term flexibility but underscoring profitability and cash-generation challenges ahead. Management commentary (not available in the provided transcript data) typically emphasizes product innovation, digital/direct-to-consumer (DTC) growth, and cost discipline as levers for improving profitability, though explicit forward guidance was not disclosed in the supplied materials. Overall, the QQ4 results depict a company stabilizing revenue rather than expanding margins or free cash flow in the near term, set against an intensely competitive apparel retail backdrop.
Key Performance Indicators
QoQ: -10.63% | YoY:-1.99%
QoQ: -109.04% | YoY:-128.80%
QoQ: -100.24% | YoY:-102.64%
QoQ: -100.23% | YoY:-103.00%
Key Insights
Revenue: $1,332.06 million, up 1.15% YoY; QoQ change not provided in a standalone quarterly table but implied by segment data. Gross Profit: $599.34 million; Gross Margin: 44.99% (0.4500). Operating Income: -$6.46 million; Operating Margin: -0.48%. EBITDA: $29.45 million; EBITDA Margin: ~2.21% (0.0221). Net Income: -$0.26 million; Net Margin: -0.02%. EPS (Diluted): -$0.0006. Cash from Operations: -$139.15 million; Capex: -$17.54 million; Free Cash Flow: -$156.69 million. Cash at end of period: ~...
Financial Highlights
Revenue: $1,332.06 million, up 1.15% YoY; QoQ change not provided in a standalone quarterly table but implied by segment data. Gross Profit: $599.34 million; Gross Margin: 44.99% (0.4500). Operating Income: -$6.46 million; Operating Margin: -0.48%. EBITDA: $29.45 million; EBITDA Margin: ~2.21% (0.0221). Net Income: -$0.26 million; Net Margin: -0.02%. EPS (Diluted): -$0.0006. Cash from Operations: -$139.15 million; Capex: -$17.54 million; Free Cash Flow: -$156.69 million. Cash at end of period: ~$876.92 million; Cash at beginning: ~$1,058.20 million. Total Assets: $4.7607 billion; Total Liabilities: $2.6074 billion; Total Stockholders’ Equity: $2.1533 billion. Net Debt: ~$584.10 million. Current Ratio: 2.46; Gross Margin: 45.0%; Net Margin: -0.02%; Debt/Capitalization: 0.40.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.33B |
1.15% |
-10.36% |
| Gross Profit |
599.34M |
-1.99% |
-10.63% |
| Operating Income |
-6.46M |
-128.80% |
-109.04% |
| Net Income |
-264.00K |
-102.64% |
-100.24% |
| EPS |
0.00 |
-103.00% |
-100.23% |
Key Financial Ratios
operatingProfitMargin
-0.49%
operatingCashFlowPerShare
$-0.32
freeCashFlowPerShare
$-0.36
priceEarningsRatio
-3015.68
Management Commentary
Note: The earnings transcript data is not provided in the supplied material. As a result, there are no management quotes or theme-based highlights to extract from the call. Anticipated themes in this sector typically include: (1) emphasis on DTC and digital channels, (2) cost containment and SG&A efficiency, (3) product innovation and brand differentiation, and (4) international expansion and inventory management. Investors should view any available post-Q4 transcript through the company’s investor relations release for concrete guidance and quotes.
Forward Guidance
No explicit forward guidance was disclosed in the provided materials. Given the QQ4 2024 results, investors should monitor: (1) trajectory of gross margin stabilization or improvement via product mix and pricing actions, (2) SG&A containment to convert modest revenue growth into positive operating income, (3) working capital management to convert cash flow into positive free cash flow, and (4) progress on DTC acceleration and international channel expansion. External factors to watch include consumer discretionary trends in key markets, warehouse/retail channel dynamics, and currency movements (Under Armour reports in USD with international exposure). Absent formal guidance, the reach for profitability hinges on margin discipline and cash-flow optimization alongside continued brand strength and e-commerce growth.