Under Armour Reports 38% Decrease in Net Income for Fiscal 2024Under Armour (NYSE: NYSE:UAA ), an athletic performance apparel brand, has reported a 38% decrease in net income for fiscal 2024 (FY 2024) from $374.45m in fiscal 2023 (FY 2023). The company's adjusted net income stood at $245m, and its diluted earnings per share also declined to $0.52, compared to $0.81 in fiscal 2023. For the year ending 31 March, Under Armour's ( NYSE:UAA ) revenue reached $5.7bn, marking a 3.4% decrease from $5.9bn a year earlier.
Revenue in North America dropped by 8.3% to $3.5bn while international revenue rose by 8% to $2.2bn over the fiscal. The retailer's direct-to-consumer segment showed resilience, with a 3% increase in revenue to $2.3bn. This growth was attributed to a 5% rise in owned and operated store revenue and a 1% uptick in e-commerce revenue, which now represents 41% of the direct-to-consumer business.
Under Armour's ( NYSE:UAA ) gross profit remained relatively stable at $2.63bn in FY 2024, compared to $2.64bn in the previous year. The company's gross margin improved by 130 basis points to 46.1%, largely due to supply chain efficiencies that reduced freight and product costs. Under Armour's ( NYSE:UAA ) board of directors has approved a restructuring plan to boost its financial and operational efficiencies, expected to cost the company between $70m and $90m.
Under Armour ( NYSE:UAA ) president and CEO Kevin Plank said that despite a challenging retail environment in fiscal 2024, the company demonstrated disciplined expense control and delivered results that were aligned with its previous outlook. He also maintained a strong balance sheet, closing the year with a solid cash position and healthy inventory levels. Looking ahead to fiscal 2025, Under Armour ( NYSE:UAA ) anticipates operating income to be between $50m and $70m, with diluted earnings per share expected to range from $0.02 to $0.05.
The past eight years for Under Armour ( NYSE:UAA ) have been a struggle that doesn't appear to be abating. The company announced a restructuring of its business as its North America sales in its most recent quarter tumbled 10%. Looking ahead, the company cast a dour forecast for its current fiscal year, expecting sales to drop 15% to 17%. Layoffs will be part of the effort to right the ship, but executives did not specify how many employees will lose their jobs.
Under Armour ( NYSE:UAA ) also announced a $500 million share buyback, a move to reward shareholders. Plank told analysts during the earnings call on Thursday that he will shepherd a reset of the business that centers on selling fewer but more innovative products to meet the needs of athletes, significantly accelerating product development, refocusing on its men's apparel category, and reducing discounts of its products.
