Under Armour, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the Full Year of 2017
January 31, 2017 at 05:30 pm IST
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Under Armour, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported net revenues of $1,308.128 million compared to $1,170.686 million a year ago. Income from operations was of $166.750 million compared to $177.582 million a year ago. Income before income taxes was of $157.061 million compared to $171.330 million a year ago. Net income available to all stockholders was of $104.910 million or $0.23 per diluted Class A and B common stock compared to $105.603 million or $0.24 per diluted Class A and B common stock a year ago.
For the year, the company reported net revenues of $4,828.186 million compared to $3,963.313 million a year ago. Income from operations was of $420.322 million compared to $408.547 million a year ago. Income before income taxes was of $391.133 million compared to $386.685 million a year ago. Net income available to all stockholders was of $258.660 million or $0.45 per diluted Class A and B common stock compared to $232.573 million or $0.53 per diluted Class A and B common stock a year ago. Net cash provided by operating activities was $304.487 million compared to net cash used in operating activities of $44.104 million a year ago. Purchases of property and equipment were of $316.458 million compared to $298.928 million a year ago. Non-GAAP net income attributable to common shareholders was of $258.660 million or $0.58 per diluted Class A and B common stock.
The company provided earnings guidance for the full year of 2017. Net revenues are expected to grow 11% to 12% to reach nearly $5.4 billion, up 12% to 13% currency neutral. Gross margin is expected to be slightly down compared to the prior year with benefits in product costs being offset by continued pressure from changes in foreign currency and sales mix, as the footwear and international businesses continue to outpace the growth of the higher margin apparel and North American businesses. Tempered top line results coupled with strategic investments in the company's fastest growing businesses are expected to cause a decline in operating income to approximately $320 million. Other full year assumptions include interest expense of approximately $40 million and an effective tax rate of 32% to 34%.
Under Armour, Inc. is a developer, marketer and distributor of branded athletic performance apparel, footwear and accessories. It is engaged in developing, marketing and distributing branded performance apparel, footwear and accessories for men, women and youth. It operates in four geographic segments: North America, comprising the United States and Canada; Europe, the Middle East and Africa (EMEA); Asia-Pacific, and Latin America. It sells its apparel, footwear and accessories in North America through wholesale and direct-to-consumer channels. It sells its apparel, footwear and accessories in EMEA primarily through wholesale customers and independent distributors, along with e-commerce websites and Brand and Factory House stores. It sells its apparel, footwear and accessories products in China, South Korea, Australia, Singapore, Malaysia and Thailand through stores operated by its distribution and wholesale partners, along with e-commerce websites and Brand and Factory House stores.
Under Armour, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Provides Earnings Guidance for the Full Year of 2017