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EX - 99.1 2 exhibit991q22021.htm EX - 99.1 UNDER ARMOUR REPORTS SECOND QUARTER 2021 RESULTS ; RAISES FULL YEAR OUTLOOK BALTIMORE , Aug. 3 , 2021 - Under Armour , Inc. ( NYSE : UA , UAA ) today announced unaudited financial results for the second quarter ended June 30 , 2021. The company reports its financial performance in accordance with accounting principles generally accepted in the United States of America ( " GAAP " ) . This press release refers to " currency neutral " and " adjusted " amounts , which are non - GAAP financial measures described below under the " Non - GAAP Financial Information " paragraph . þ " We are very pleased with Under Armour's better than expected second - quarter results , which reflect solid progress compared to both 2020 and 2019. Given the continued momentum , we're raising our full - year outlook , which puts us on track to achieving a solid performance in 2021 , " said Under Armour President and CEO Patrik Frisk . " With the critical mass of our transformation behind us and the continued improvements across product , marketing , and our financial results , I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth . " Second Quarter 2021 Review UNDER ARMOUR . Frisk concluded , " At the halfway point of our fiscal year , I'm confident in our ability to execute our strategy by putting Focused Performers at the center of everything we do and increasing our capacity to drive consistent , profitable growth for our shareholders over the long - term . " ● ● Revenue was up 91 percent to $ 1.4 billion ( up 85 percent currency neutral ) compared to the prior year . Wholesale revenue increased 157 percent to $ 768 million and direct - to - consumer revenue increased 52 percent to $ 561 million , driven by strong growth in owned and operated stores offset by an 18 percent decline in eCommerce , which represented 39 percent of the total direct - to - consumer business . North America revenue increased 101 percent to $ 905 million and international revenue increased 100 percent to $ 446 million ( up 84 percent currency neutral ) . Within the international business , revenue increased 133 percent in EMEA ( up 116 percent currency neutral ) , increased 56 percent in Asia - Pacific ( up 43 percent currency neutral ) , and increased 317 percent in Latin America ( up 284 percent currency neutral ) . Apparel revenue increased 105 percent to $ 874 million . Footwear revenue increased 85 percent to $ 343 million . Accessories revenue increased 99 percent to $ 112 million . Gross margin increased 20 basis points to 49.5 percent compared to the prior year , driven primarily by benefits from pricing and changes in foreign currency , offset by channel mix , and the sale of the MyFitnessPal platform , which carried a higher gross margin rate . Selling , general & administrative expenses increased 14 percent to $ 545 million primarily due to increased marketing expenses and costs associated with the company's owned and operated stores , which were closed most of last year's comparable period due to the COVID - 19 pandemic . Restructuring charges were $ 3 million . Operating income was $ 121 million . Adjusted operating income was $ 124 million . Net income was $ 59 million . Adjusted net income was $ 110 million . Diluted earnings per share was $ 0.13 . Adjusted diluted earnings per share was $ 0.24 . Inventory was down 26 percent to $ 881 million . Cash and Cash Equivalents were $ 1.3 billion at the end of the quarter , and no borrowings were outstanding under the company's $ 1.1 billion revolving credit facility .