Fourth quarter revenue at Under Armour, Inc. was up 9 percent or 8 percent currency neutral to 1.5 billion dollars compared to the prior year.
Net income for the quarter was 110 million dollars and adjusted net income was 67 million dollars. The company reported diluted earnings per share of 23 cents and adjusted diluted earnings per share of 14 cents.
"The final quarter of 2021 demonstrated the power and consistency of Under Armour's strategic playbook, which allowed us to capitalize on improving brand strength and consumer demand. By staying hyper-focused on operational excellence and serving the needs of athletes, we were able to deliver record revenue and earnings results for the full year," said Under Armour president and CEO Patrik Frisk.
Under Armour’s fourth quarter review
The company said, wholesale revenue increased 16 percent to 768 million dollars and direct-to-consumer revenue increased 10 percent to 720 million dollars, driven by solid performance in company-owned and operated stores and 4 percent growth in ecommerce, which represented 42 percent of the total direct-to-consumer business during the quarter.
North America revenue increased 15 percent to 1.1 billion dollars and international revenue increased 3 percent or 2 percent currency neutral to 461 million dollars. Within the international business, revenue increased 24 percent or 23 percent currency neutral in EMEA, decreased 6 percent or 7 percent currency neutral in Asia-Pacific and decreased 22 percent or 23 percent currency neutral in Latin America.
Apparel revenue increased 18 percent to 1.1 billion dollars, footwear revenue increased 17 percent to 283 million dollars, while accessories revenue decreased 27 percent to 107 million dollars.
Gross margin increased 130 basis points to 50.7 percent compared to the prior year, operating income was 86 million dollars and adjusted operating income was 100 million dollars.
Under Armour’s full year revenues rise 27 percent
For the full year, the company’s revenue was up 27 percent or 25 percent currency neutral to 5.7 billion dollars compared to the prior year.
Wholesale revenue increased 36 percent to 3.2 billion dollars and direct-to-consumer revenue increased 26 percent to 2.3 billion dollars, driven by strong performance in company-owned and operated stores and a 4 percent increase in ecommerce, which represented 39 percent of the total direct-to-consumer business in 2021. The company’s North America revenue increased 29 percent to 3.8 billion dollars and international revenue increased 34 percent or 28 percent currency neutral to 1.9 billion dollars.
Within the international business, revenue increased 41 percent or 35 percent currency neutral in EMEA, increased 32 percent or 26 percent currency neutral in Asia-Pacific and increased 18 percent or 14 percent currency neutral in Latin America.
Apparel revenue increased 33 percent to 3.8 billion dollars, footwear revenue increased 35 percent to 1.3 billion dollars and accessories revenue increased 12 percent to 462 million dollars.
Gross margin for the year increased 210 basis points to 50.3 percent compared to the prior year, while adjusted gross margin increased 180 basis points to 50.4 percent.
Operating income was 486 million dollars and adjusted operating income was 527 million dollars. Net income was 360 million dollars, adjusted net income was 397 million dollars, while diluted earnings per share were 77 cents and adjusted diluted earnings per share were 85 cents.
Under Armour provides outlook for transition quarter ending March 31, 2022
Under Armour's outlook for the transition quarter ending March 31, 2022, when compared to the same calendar period of fiscal 2021, expects revenue increase at a mid-single-digit rate compared to the previous expectation of a low single-digit rate increase. This expectation includes approximately 10 percentage points of headwinds related to reductions in our spring-summer 2022 order book from supply constraints associated with ongoing Covid-19 pandemic impacts.
Gross margin is expected to be down 200 basis points compared to the prior year period's adjusted gross margin. This expectation includes approximately 240 basis points of negative impact due to higher freight expenses resulting from ongoing Covid-19 supply chain challenges in addition to unfavourable sales mix, partially offset by pricing benefits.
Operating income is expected to reach approximately 30 million dollars to 35 million dollars and diluted earnings per share are expected to be 2 cents to 3 cents.