20 Jul

What Will Drive Under Armour in Fiscal 2018?

WRITTEN BY Sonya Bells FEATURED IN Pre-Release Earnings Reports

Expectations from UAA’s second quarter

Under Armour’s (UAA) total sales improved 6.1% YoY (year-over-year) in the first quarter of 2018 to $1.18 billion. UAA’s management expects the same kind of growth for the second quarter. The company will report results for the second quarter on July 26. Wall Street, in comparison, has projected a 5.5% YoY increase in sales to $1.15 billion for the quarter.

What Will Drive Under Armour in Fiscal 2018?

Full-year outlook

For full fiscal 2018, the management has projected a low-single-digit increase in total sales. North America sales are projected to continue to decline at a mid-single digit rate. International business is once again expected to be a growth engine. International sales are expected to jump at a 25% plus growth rate.

Under Armour’s international business has provided the necessary cushioning to the company during these tough times. Overseas sales improved an impressive 46% during fiscal 2017 and another 27% during the first quarter of 2018. EMEA, Asia Pacific, and Latin America markets have remained particularly strong. The company derives close to 25% of its total sales from overseas markets.

Channel-wise analysis

Under Armour derives about 65% of its top line from the wholesale channel. However, the company has faced continued weakness in this channel. The wholesale business fell 3% during fiscal 2017, even as the direct-to-consumer channel stood strong and improved 14% during the year.

Weakness in wholesale is likely to continue into fiscal 2018 and is expected to offset the mid-to-high-single-digit growth in the DTC business.

Move on to the next section for a look at UAA’s profitability.

Latest articles

18 Mar

Tilray Reports Its Fourth-Quarter Earnings


Tilray (TLRY) reported its quarterly earnings after the market closed. The company reported a total quarterly sales of $15.5, which increased nearly 203.8% year-over-year.

Earlier today, US tech giant Apple (AAPL) launched new versions of its iPad Air and iPad Mini. The company is set to hold a special event on March 25.

18 Mar

How Facebook Aims to Compete with Twitch


Facebook has stated that over 700 million of its users play games, watch gaming videos, and engage in gaming groups on its platform.

On March 18, President Trump tweeted, “GDP growth during the four quarters of 2018 was the fastest since 2005.” Let’s look at the data.

Today, Steel Dynamics released its first-quarter earnings guidance. It expects its first-quarter EPS to be between $0.88 and $0.92.

18 Mar

Why Amazon Is Interested in YES Network


Amazon (AMZN) recently teamed up with the Yankees and other investors to purchase the YES Network.