UNDER ARMOUR REPORTS SECOND QUARTER 2025 RESULTS; RAISES FISCAL 2025 OUTLOOK
"Our second quarter fiscal 2025 performance demonstrates that our strategy to reconstitute the Under Armour brand and establish a more premium position in the marketplace is gaining traction," said
Plank continued, "We are a fundamentally stronger business today with increasingly better execution across key dimensions. This includes more consistent marketplace discipline through meaningfully improved product, storytelling, and sales leadership, which will deliver a sharper, unique approach to our brand position in the years ahead."
Second Quarter Fiscal 2025 Review
- In line with our expectations, revenue was down 11 percent to
$1.4 billion (down 10 percent currency neutral).North America revenue decreased 13 percent to$863 million , and international revenue decreased 6 percent to$538 million (down 5 percent currency neutral). In the international business, revenue in EMEA was down 1 percent (down 1 percent currency neutral), down 11 percent inAsia-Pacific (down 10 percent currency neutral), and down 13 percent inLatin America (down 4 percent currency neutral).- Wholesale revenue decreased 12 percent to
$826 million , and direct-to-consumer revenue was down 8 percent to$550 million . Revenue from owned and operated stores remained flat. Due to planned decreases in promotional activities, eCommerce revenue decreased by 21 percent, representing 30 percent of the total direct-to-consumer business for the quarter. - Apparel revenue decreased 12 percent to
$947 million , footwear revenue was down 11 percent to$313 million , and accessories revenue was up 2 percent to$116 million .
- Gross margin increased 200 basis points to 49.8 percent, driven primarily by lower product and freight costs, reduced discounting levels in the direct-to-consumer business, and a favorable channel mix.
-
Selling, general, and administrative expenses decreased 15 percent to
$520 million . Adjusted selling, general, and administrative expenses decreased 13 percent to $530 million, which excludes$13 million in benefits from a litigation-related insurance recovery and approximately$3 million in transformation expenses related to our Fiscal 2025 restructuring program. -
Restructuring charges were
$3 million . -
Operating income was
$173 million . Excluding the insurance recovery, transformation expenses, and restructuring charges, adjusted operating income was$166 million . -
Net income was
$170 million . Adjusted net income was$131 million . -
Diluted earnings per share was
$0.39 . Adjusted diluted earnings per share was$0.30 . -
Inventory decreased 3 percent to
$1.1 billion . - At the end of the quarter, cash and cash equivalents totaled
$531 million , and no borrowings were outstanding under the company's$1.1 billion revolving credit facility.
Fiscal 2025 Restructuring Plan
In
Updated Fiscal 2025 Outlook
Key points related to
-
Revenue is expected to decline at a low double-digit percentage rate. This includes a 14 to 16 percent decline in
North America as the company works to reset this business. The company also expects a low single-digit percent decline in its international business, with flat results in EMEA offset by a high single-digit decline in itsAsia-Pacific business due to macroeconomic pressures. - Gross margin is expected to increase by 125 to 150 basis points compared to the prior expectation of a 75 to 100 basis point improvement. This increase is driven primarily by reduced promotional and discounting activities in the company's direct-to-consumer business and product costing benefits.
-
Selling, general, and administrative expenses are expected to increase in the mid-to-high single-digit percentage range, primarily due to litigation settlement expenses. Excluding the litigation settlement expense, related insurance recoveries, and anticipated transformation expenses, adjusted selling, general, and administrative expenses are expected to decrease at a low-to-mid single-digit percentage rate. This includes approximately
$25 million in additional marketing investments following better-than-expected year-to-date profitability performance that will be used to build the brand over the long term. -
Operating loss is expected to be
$176 to$196 million , compared to the previous expectation of$220 to$240 million . Excluding the midpoint of anticipated restructuring charges and transformation expenses, litigation settlement expenses, and related insurance recoveries, adjusted operating income is expected to be$165 to$185 million , compared to the prior expectation of$140 to$160 million . -
Diluted loss per share is expected to be between
$0.48 and$0.51 , compared to the prior expectation of$0.53 to$0.56 . Adjusted diluted earnings per share is expected to be between$0.24 and$0.27 , compared to the previous expectation of$0.19 to$0.21 . -
Capital expenditures are expected to be between
$190 and$210 million , compared to the previous estimate of$200 to$220 million .
Conference Call and Webcast
Non-GAAP Financial Information
This press release refers to "currency-neutral" and "adjusted" results, as well as "adjusted" forward-looking estimates of the company's results for its 2025 fiscal year ending
About
Forward-Looking Statements
Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, such as statements regarding our share repurchase program, our future financial condition or results of operations, our prospects and strategies for future growth, potential restructuring efforts, including the scope of these restructuring efforts and the amount of potential charges and costs, the timing of these measures, and the anticipated benefits of our restructuring plans, expectations regarding promotional activities, freight, product cost pressures, and foreign currency impacts, the impact of global economic conditions and inflation on our results of operations, our liquidity and use of capital resources, the development and introduction of new products, the implementation of our marketing and branding strategies, the future benefits and opportunities from significant investments, and the impact of litigation or other proceedings. In many cases, you can identify forward-looking statements by terms such as "may," "will," "could," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "outlook," "potential," or the negative of these terms or other comparable terminology. The forward-looking statements in this press release reflect our current views about future events. They are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe the expectations reflected in the forward-looking statements are reasonable, they are inherently uncertain. We cannot guarantee future events, results, actions, activity levels, performance, or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Several important factors could cause actual results to differ materially from those indicated by these forward-looking statements, including, but not limited to: changes in general economic or market conditions, including increasing inflation, that could affect overall consumer spending or our industry; increased competition causing us to lose market share or reduce the prices of our products or increase our marketing efforts significantly; fluctuations in the costs of raw materials and commodities we use in our products and our supply chain (including labor); our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business; changes in the financial health of our customers; our ability to effectively develop and launch new, innovative, and updated products; our ability to accurately forecast consumer shopping and engagement preferences and consumer demand for our products and manage our inventory in response to changing demands; our ability to successfully execute any potential restructuring plans and realize their expected benefits; our ability to comply with existing trade and other regulations, and the potential impact of new trade, tariff, and tax regulations on our profitability; loss of key customers, suppliers, or manufacturers; our ability to further expand our business globally and drive brand awareness and consumer acceptance of our products in other countries; our ability to manage the increasingly complex operations of our global business; the impact of global events beyond our control, including military conflicts; the impact of global or regional public health emergencies on our industry and our business, financial condition, and results of operations, including impacts on the global supply chain; our ability to successfully manage or realize expected results from significant transactions and investments; our ability to effectively market and maintain a positive brand image; our ability to attract key talent and retain the services of our senior management and other key employees; our ability to effectively meet regulatory requirements and stakeholder expectations with respect to sustainability and social matters; the availability, integration, and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; any disruptions, delays, or deficiencies in the design, implementation, or application of our global operating and financial reporting information technology system; our ability to access capital and financing required to manage our business on terms acceptable to us; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; risks related to foreign currency exchange rate fluctuations; risks related to data security or privacy breaches; and our potential exposure to and the financial impact of litigation and other proceedings. The forward-looking statements here reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect unanticipated events.
As previously disclosed, during Fiscal 2024, we identified and corrected certain accounting errors, primarily related to the cost of goods sold and selling, general and administrative expenses on the Consolidated Statement of Operations, and corresponding impacts to our other Consolidated Financial Statements. The impacts of these revisions were not material to our previously filed financial statements. Information presented in the tables below for the three and six months ended
|
For the Three and Six Months Ended
(Unaudited; in thousands, except per share amounts) CONDENSED CONSOLIDATED STATEMENTS OF OPERATION |
|||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
in '000s |
2024 |
|
% of Net |
|
2023 |
|
% of Net |
|
2024 |
|
% of Net |
|
2023 |
|
% of Net |
|
Net revenues |
$ 1,399,023 |
|
100.0 % |
|
$ 1,566,674 |
|
100.0 % |
|
$ 2,582,688 |
|
100.0 % |
|
$ 2,883,639 |
|
100.0 % |
|
Cost of goods sold |
702,891 |
|
50.2 % |
|
818,151 |
|
52.2 % |
|
1,323,881 |
|
51.3 % |
|
1,523,621 |
|
52.8 % |
|
Gross profit |
696,132 |
|
49.8 % |
|
748,523 |
|
47.8 % |
|
1,258,807 |
|
48.7 % |
|
1,360,018 |
|
47.2 % |
|
Selling, general and administrative expenses |
519,840 |
|
37.2 % |
|
609,050 |
|
38.9 % |
|
1,357,157 |
|
52.5 % |
|
1,198,122 |
|
41.5 % |
|
Restructuring charges |
3,212 |
|
0.2 % |
|
— |
|
— % |
|
28,298 |
|
1.1 % |
|
— |
|
— % |
|
Income (loss) from operations |
173,080 |
|
12.4 % |
|
139,473 |
|
8.9 % |
|
(126,648) |
|
(4.9) % |
|
161,896 |
|
5.6 % |
|
Interest income (expense), net |
(1,747) |
|
(0.1) % |
|
(373) |
|
— % |
|
597 |
|
— % |
|
(1,999) |
|
(0.1) % |
|
Other income (expense), net |
(3,420) |
|
(0.2) % |
|
(6,104) |
|
(0.4) % |
|
(6,150) |
|
(0.2) % |
|
(12,164) |
|
(0.4) % |
|
Income (loss) before income taxes |
167,913 |
|
12.0 % |
|
132,996 |
|
8.5 % |
|
(132,201) |
|
(5.1) % |
|
147,733 |
|
5.1 % |
|
Income tax expense (benefit) |
(2,136) |
|
(0.2) % |
|
28,436 |
|
1.8 % |
|
3,013 |
|
0.1 % |
|
32,764 |
|
1.1 % |
|
Income (loss) from equity method investments |
333 |
|
— % |
|
151 |
|
— % |
|
170 |
|
— % |
|
(248) |
|
— % |
|
Net income (loss) |
$ 170,382 |
|
12.2 % |
|
$ 104,711 |
|
6.7 % |
|
|
|
(5.2) % |
|
$ 114,721 |
|
4.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share of Class A, B and C common stock |
$ 0.39 |
|
|
|
$ 0.24 |
|
|
|
$ (0.31) |
|
|
|
$ 0.26 |
|
|
|
Diluted net income (loss) per share of Class A, B and C common stock |
$ 0.39 |
|
|
|
$ 0.23 |
|
|
|
$ (0.31) |
|
|
|
$ 0.25 |
|
|
|
Weighted average common shares outstanding Class A, B and C common stock |
|
|
|
|
|
|
|
|
|||||||
|
Basic |
432,225 |
|
|
|
443,525 |
|
|
|
433,950 |
|
|
|
444,195 |
|
|
|
Diluted |
435,685 |
|
|
|
453,715 |
|
|
|
433,950 |
|
|
|
454,107 |
|
|
|
For the Three and Six Months Ended
(Unaudited; in thousands) NET REVENUES BY SEGMENT |
|||||||||||
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
in '000s |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
|
$ 863,345 |
|
$ 991,357 |
|
(12.9) % |
|
$ 1,572,605 |
|
$ 1,817,962 |
|
(13.5) % |
|
EMEA |
283,178 |
|
287,091 |
|
(1.4) % |
|
510,070 |
|
513,732 |
|
(0.7) % |
|
|
207,661 |
|
232,065 |
|
(10.5) % |
|
389,497 |
|
434,297 |
|
(10.3) % |
|
|
46,941 |
|
53,669 |
|
(12.5) % |
|
111,350 |
|
109,408 |
|
1.8 % |
|
Corporate Other (1) |
(2,102) |
|
2,492 |
|
(184.3) % |
|
(834) |
|
8,240 |
|
(110.1) % |
|
Total net revenues |
$ 1,399,023 |
|
$ 1,566,674 |
|
(10.7) % |
|
$ 2,582,688 |
|
$ 2,883,639 |
|
(10.4) % |
|
NET REVENUES BY DISTRIBUTION CHANNEL |
|||||||||||
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
in '000s |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Wholesale |
$ 825,993 |
|
$ 939,725 |
|
(12.1) % |
|
$ 1,506,506 |
|
$ 1,681,683 |
|
(10.4) % |
|
Direct-to-consumer |
550,336 |
|
595,811 |
|
(7.6) % |
|
1,030,549 |
|
1,139,998 |
|
(9.6) % |
|
|
1,376,329 |
|
1,535,536 |
|
(10.4) % |
|
2,537,055 |
|
2,821,681 |
|
(10.1) % |
|
License revenues |
24,796 |
|
28,646 |
|
(13.4) % |
|
46,467 |
|
53,718 |
|
(13.5) % |
|
Corporate Other (1) |
(2,102) |
|
2,492 |
|
(184.3) % |
|
(834) |
|
8,240 |
|
(110.1) % |
|
Total net revenues |
$ 1,399,023 |
|
$ 1,566,674 |
|
(10.7) % |
|
$ 2,582,688 |
|
$ 2,883,639 |
|
(10.4) % |
|
NET REVENUES BY PRODUCT CATEGORY |
|||||||||||
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
in '000s |
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|
Apparel |
$ 947,188 |
|
$ 1,070,401 |
|
(11.5) % |
|
$ 1,704,980 |
|
$ 1,895,014 |
|
(10.0) % |
|
Footwear |
312,760 |
|
351,202 |
|
(10.9) % |
|
623,149 |
|
714,872 |
|
(12.8) % |
|
Accessories |
116,381 |
|
113,933 |
|
2.1 % |
|
208,926 |
|
211,795 |
|
(1.4) % |
|
|
1,376,329 |
|
1,535,536 |
|
(10.4) % |
|
2,537,055 |
|
2,821,681 |
|
(10.1) % |
|
Licensing revenues |
24,796 |
|
28,646 |
|
(13.4) % |
|
46,467 |
|
53,718 |
|
(13.5) % |
|
Corporate Other (1) |
(2,102) |
|
2,492 |
|
(184.3) % |
|
(834) |
|
8,240 |
|
(110.1) % |
|
Total net revenues |
$ 1,399,023 |
|
$ 1,566,674 |
|
(10.7) % |
|
$ 2,582,688 |
|
$ 2,883,639 |
|
(10.4) % |
|
|
|
(1) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the company's operating segments but managed through its central foreign exchange risk management program. |
|
For the Three and Six Months Ended
(Unaudited; in thousands) INCOME (LOSS) FROM OPERATIONS BY SEGMENT |
|||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
in '000s |
2024 |
|
% of Net |
|
2023 |
|
% of Net |
|
2024 |
|
% of Net |
|
2023 |
|
% of Net |
|
|
$ 217,259 |
|
25.2 % |
|
$ 211,071 |
|
21.3 % |
|
$ 365,148 |
|
23.2 % |
|
$ 371,785 |
|
20.5 % |
|
EMEA |
51,595 |
|
18.2 % |
|
38,826 |
|
13.5 % |
|
72,051 |
|
14.1 % |
|
68,605 |
|
13.4 % |
|
|
34,214 |
|
16.5 % |
|
54,608 |
|
23.5 % |
|
44,149 |
|
11.3 % |
|
70,006 |
|
16.1 % |
|
|
12,171 |
|
25.9 % |
|
13,615 |
|
25.4 % |
|
27,342 |
|
24.6 % |
|
19,392 |
|
17.7 % |
|
Corporate Other (2) |
(142,159) |
|
NM |
|
(178,647) |
|
NM |
|
(635,338) |
|
NM |
|
(367,892) |
|
NM |
|
Income (loss) from operations |
$ 173,080 |
|
12.4 % |
|
$ 139,473 |
|
8.9 % |
|
|
|
(4.9) % |
|
$ 161,896 |
|
5.6 % |
|
|
|
(1) The percentage of operating income (loss) is calculated based on total segment net revenues. The operating income (loss) percentage for Corporate Other is not presented as a meaningful metric (NM). |
|
(2) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the company's operating segments but managed through its central foreign exchange risk management program. Corporate Other also includes expenses related to the company's central supporting functions. |
|
As of
(Unaudited; in thousands) CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
|
|
|
|
|
|
|
in '000s |
|
|
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ 530,701 |
|
$ 858,691 |
|
Accounts receivable, net |
|
723,042 |
|
757,339 |
|
Inventories |
|
1,105,884 |
|
958,495 |
|
Prepaid expenses and other current assets, net |
|
210,109 |
|
289,157 |
|
Total current assets |
|
2,569,736 |
|
2,863,682 |
|
Property and equipment, net |
|
677,400 |
|
664,503 |
|
Operating lease right-of-use assets |
|
415,386 |
|
434,699 |
|
|
|
495,029 |
|
478,302 |
|
Intangible assets, net |
|
6,092 |
|
7,000 |
|
Deferred income taxes |
|
241,502 |
|
221,033 |
|
Other long-term assets |
|
89,448 |
|
91,515 |
|
Total assets |
|
$ 4,494,593 |
|
$ 4,760,734 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current maturities of long-term debt |
|
$ — |
|
$ 80,919 |
|
Accounts payable |
|
562,582 |
|
483,731 |
|
Accrued expenses |
|
292,259 |
|
287,853 |
|
Customer refund liabilities |
|
144,983 |
|
139,283 |
|
Operating lease liabilities |
|
135,691 |
|
139,331 |
|
Other current liabilities |
|
45,614 |
|
34,344 |
|
Total current liabilities |
|
1,181,129 |
|
1,165,461 |
|
Long-term debt, net of current maturities |
|
594,592 |
|
594,873 |
|
Operating lease liabilities, non-current |
|
601,497 |
|
627,665 |
|
Other long-term liabilities |
|
132,174 |
|
219,449 |
|
Total liabilities |
|
2,509,392 |
|
2,607,448 |
|
Total stockholders' equity |
|
1,985,201 |
|
2,153,286 |
|
Total liabilities and stockholders' equity |
|
$ 4,494,593 |
|
$ 4,760,734 |
|
For the Six Months Ended (Unaudited; in thousands) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
|
|
|
||
|
|
Six Months Ended |
||
|
|
2024 |
|
2023 |
|
Cash flows from operating activities |
|
|
|
|
Net income (loss) |
$ (135,044) |
|
$ 114,721 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
|
Depreciation and amortization |
65,565 |
|
68,287 |
|
Unrealized foreign currency exchange rate (gain) loss |
(14,535) |
|
21,145 |
|
Loss on disposal of property and equipment |
2,598 |
|
696 |
|
Non-cash restructuring and impairment charges |
3,679 |
|
— |
|
Amortization of bond premium and debt issuance costs |
1,107 |
|
1,096 |
|
Stock-based compensation |
28,468 |
|
23,357 |
|
Deferred income taxes |
(6,400) |
|
(10,788) |
|
Changes in reserves and allowances |
(607) |
|
18,471 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
31,461 |
|
(51,327) |
|
Inventories |
(144,058) |
|
30,034 |
|
Prepaid expenses and other assets |
23,950 |
|
(13,421) |
|
Other non-current assets |
9,428 |
|
47,671 |
|
Accounts payable |
73,733 |
|
(120,353) |
|
Accrued expenses and other liabilities |
(107,102) |
|
(71,161) |
|
Customer refund liabilities |
5,671 |
|
(11,244) |
|
Income taxes payable and receivable |
(6,323) |
|
8,299 |
|
Net cash provided by (used in) operating activities |
(168,409) |
|
55,483 |
|
Cash flows from investing activities |
|
|
|
|
Purchases of property and equipment |
(91,503) |
|
(75,384) |
|
Sale of MyFitnessPal platform |
50,000 |
|
45,000 |
|
Sale of MapMyFitness platform |
8,000 |
|
— |
|
Purchase of |
(9,788) |
|
— |
|
Net cash provided by (used in) investing activities |
(43,291) |
|
(30,384) |
|
Cash flows from financing activities |
|
|
|
|
Common shares repurchased |
(40,000) |
|
(50,000) |
|
Repayment of long-term debt |
(80,919) |
|
— |
|
Employee taxes paid for shares withheld for income taxes |
(8,399) |
|
(2,318) |
|
Proceeds from exercise of stock options and other stock issuances |
1,314 |
|
1,781 |
|
Payments of debt financing costs |
(1,388) |
|
— |
|
Net cash provided by (used in) financing activities |
(129,392) |
|
(50,537) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
14,023 |
|
(28,671) |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
(327,069) |
|
(54,109) |
|
Cash, cash equivalents and restricted cash |
|
|
|
|
Beginning of period |
876,917 |
|
726,745 |
|
End of period |
$ 549,848 |
|
$ 672,636 |
|
For the Three and Six Months Ended (Unaudited) |
|||
|
|
|||
|
The table below presents the reconciliation of net revenue growth (decline) calculated according to GAAP to currency- |
|||
|
|
|||
|
CURRENCY-NEUTRAL NET REVENUE GROWTH (DECLINE) RECONCILIATION |
|||
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
Total Net Revenue |
|
|
|
|
Net revenue growth - GAAP |
(10.7) % |
|
(10.4) % |
|
Foreign exchange impact |
0.5 % |
|
0.3 % |
|
Currency neutral net revenue growth - Non-GAAP |
(10.2) % |
|
(10.1) % |
|
|
|
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
(12.9) % |
|
(13.5) % |
|
Foreign exchange impact |
0.3 % |
|
0.2 % |
|
Currency neutral net revenue growth - Non-GAAP |
(12.6) % |
|
(13.3) % |
|
|
|
|
|
|
EMEA |
|
|
|
|
Net revenue growth - GAAP |
(1.4) % |
|
(0.7) % |
|
Foreign exchange impact |
— % |
|
(0.2) % |
|
Currency neutral net revenue growth - Non-GAAP |
(1.4) % |
|
(0.9) % |
|
|
|
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
(10.5) % |
|
(10.3) % |
|
Foreign exchange impact |
0.2 % |
|
1.4 % |
|
Currency neutral net revenue growth - Non-GAAP |
(10.3) % |
|
(8.9) % |
|
|
|
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
(12.5) % |
|
1.8 % |
|
Foreign exchange impact |
8.7 % |
|
2.3 % |
|
Currency neutral net revenue growth - Non-GAAP |
(3.8) % |
|
4.1 % |
|
|
|
|
|
|
|
|
|
|
|
Net revenue growth - GAAP |
(6.1) % |
|
(4.4) % |
|
Foreign exchange impact |
0.9 % |
|
0.7 % |
|
Currency neutral net revenue growth - Non-GAAP |
(5.2) % |
|
(3.7) % |
|
For the Three and Six Months Ended (Unaudited; in thousands, except per share amounts) |
|||
|
|
|||
|
The tables below present the reconciliation of the company's condensed consolidated statement of operations in |
|||
|
|
|||
|
ADJUSTED SELLING GENERAL AND ADMINISTRATIVE EXPENSES |
|||
|
|
|
|
|
|
in '000s |
Three months ended |
|
Six months ended |
|
GAAP selling, general and administrative expenses |
$ 519,840 |
|
$ 1,357,157 |
|
Add: Impact of litigation settlement |
12,954 |
|
(261,046) |
|
Add: Impact of restructuring-related transformational expenses |
(2,724) |
|
(11,381) |
|
Adjusted selling, general and administrative expenses |
$ 530,070 |
|
$ 1,084,730 |
|
ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION |
|||
|
|
|
|
|
|
in '000s |
Three months ended |
|
Six months ended |
|
GAAP income (loss) from operations |
$ 173,080 |
|
$ (126,648) |
|
Add: Impact of litigation settlement |
(12,954) |
|
261,046 |
|
Add: Impact of restructuring charges |
3,212 |
|
28,298 |
|
Add: Impact of restructuring-related transformational expenses |
2,724 |
|
11,381 |
|
Adjusted income from operations |
$ 166,062 |
|
$ 174,077 |
|
ADJUSTED NET INCOME (LOSS) RECONCILIATION |
|||
|
|
|
|
|
|
in '000s |
Three months ended |
|
Six months ended |
|
GAAP net income (loss) |
$ 170,382 |
|
$ (135,044) |
|
Add: Impact of litigation settlement |
(12,954) |
|
261,046 |
|
Add: Impact of restructuring charges |
3,212 |
|
28,298 |
|
Add: Impact of restructuring-related transformational expenses |
2,724 |
|
11,381 |
|
Add: Impact of provision for income taxes |
(32,250) |
|
(30,911) |
|
Adjusted net income |
$ 131,114 |
|
$ 134,770 |
|
ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE RECONCILIATION |
|||
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
GAAP diluted net income (loss) per share |
$ 0.39 |
|
$ (0.31) |
|
Add: Impact of litigation settlement |
(0.03) |
|
0.60 |
|
Add: Impact of restructuring charges |
0.01 |
|
0.06 |
|
Add: Impact of restructuring-related transformational expenses |
0.01 |
|
0.03 |
|
Add: Impact of provision for income taxes |
(0.08) |
|
(0.07) |
|
Adjusted diluted net income per share |
$ 0.30 |
|
$ 0.31 |
|
Outlook for the Year Ended (Unaudited; in millions, except per share amounts) |
||||
|
|
||||
|
The tables below reconcile the company's condensed consolidated statement of operations, presented in accordance |
||||
|
|
||||
|
ADJUSTED OPERATING INCOME RECONCILIATION |
||||
|
|
|
|
||
|
(in millions) |
|
Year Ending |
||
|
|
|
Low end of estimate |
|
High end of estimate |
|
GAAP loss from operations |
|
$ (196) |
|
$ (176) |
|
Add: Impact of litigation settlement |
|
261 |
|
261 |
|
Add: Impact of charges under 2025 restructuring plan (1) |
|
100 |
|
100 |
|
Adjusted income from operations |
|
$ 165 |
|
$ 185 |
|
ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION |
||||
|
|
|
|
||
|
|
|
Year Ending |
||
|
|
|
Low end of estimate |
|
High end of estimate |
|
GAAP diluted net loss per share |
|
$ (0.51) |
|
$ (0.48) |
|
Add: Impact of litigation settlement |
|
0.60 |
|
0.60 |
|
Add: Impact of charges under 2025 restructuring plan (1) |
|
0.23 |
|
0.23 |
|
Add: Impact of provision for income taxes |
|
(0.08) |
|
(0.08) |
|
Adjusted diluted net income per share |
|
$ 0.24 |
|
$ 0.27 |
|
|
|
(1)
The estimated fiscal 2025 impact of the restructuring plan presented above assumes the midpoint of the Company's estimated range of fiscal 2025 restructuring and related charges under the total plan of |
|
Outlook for the Quarter Ended (Unaudited; in millions, except per share amounts) |
||||
|
|
||||
|
The tables below reconcile the company's third quarter fiscal 2025 outlook, presented in accordance with GAAP, to |
||||
|
|
||||
|
ADJUSTED OPERATING INCOME RECONCILIATION |
||||
|
|
|
|
||
|
(in millions) |
|
Quarter Ending |
||
|
|
|
Low end of estimate |
|
High end of estimate |
|
GAAP income from operations |
|
$ (13) |
|
$ (3) |
|
Add: Estimated impact of charges under 2025 restructuring plan |
|
33 |
|
33 |
|
Adjusted income from operations |
|
$ 20 |
|
$ 30 |
|
ADJUSTED DILUTED (LOSS) EARNINGS PER SHARE RECONCILIATION |
||||
|
|
|
|
||
|
|
|
Quarter Ending |
||
|
|
|
Low end of estimate |
|
High end of estimate |
|
GAAP diluted net income per share |
|
$ (0.07) |
|
$ (0.05) |
|
Add: Estimated impact of charges under 2025 restructuring plan |
|
0.08 |
|
0.08 |
|
Add: Impact of provision for income taxes |
|
0.01 |
|
0.01 |
|
Adjusted diluted net income per share |
|
$ 0.02 |
|
$ 0.04 |
|
As of COMPANY-OWNED & OPERATED DOOR COUNT |
||||
|
|
|
|
||
|
|
|
|
||
|
|
|
2024 |
|
2023 |
|
Factory House |
|
180 |
|
178 |
|
Brand House |
|
16 |
|
19 |
|
|
|
196 |
|
197 |
|
|
|
|
|
|
|
Factory House |
|
177 |
|
172 |
|
Brand House |
|
73 |
|
81 |
|
International total doors |
|
250 |
|
253 |
|
|
|
|
|
|
|
Factory House |
|
357 |
|
350 |
|
Brand House |
|
89 |
|
100 |
|
Total doors |
|
446 |
|
450 |
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