Under Armour Takes Q4 Hit - InvestingChannel

Under Armour Takes Q4 Hit

Under Armour, Inc. (NYSE: UAA) got bruised Tuesday on reporting unaudited financial results for the fourth quarter ended December 31, 2019.

Figures released Tuesday by the Baltimore-headquartered firm revealed revenue up 4% to $1.4 billion. Gross margin increased 230 basis points to 47.3 percent compared to the prior year driven primarily by pricing including lower discounts to our wholesale partners, channel mix and supply chain initiatives.

Selling, general & administrative expenses increased 3% to $607 million, or 42.1% of revenue. Operating income was $74 million.

Net loss was $15 million or $0.03 diluted loss per share, inclusive of a $23-million tax expense, which had a $0.05 negative earnings per share impact related to the recording of valuation allowances against certain of the company’s U.S. state deferred tax assets.

The company also took a $39-million impairment charge, which had an eight-cent negative earnings per share impact related to the company’s equity interest investment in its Japan licensee.

CEO Patrik Frisk said,”Under Armour is an operationally better company following our transformation over the past few years, with a clearly defined and focused strategy, enhanced go-to-market process, cleaner inventories and a stronger balance sheet.

“However, ongoing demand challenges and the need to drive greater efficiencies in our business requires us to further prioritize our investments to put our company in the best position possible to achieve sustainable, profitable growth over the long-term.”

Shares got hammered $3.53, or 17.2%, to $16.92