Despite beating analyst predictions, Under Armour’s (UAA) net income still dropped to US$109.7 million, compared to the US$184 million a year earlier.
After excluding one-time items, Under Armour’s share prices sat at US$0.14 earnings per share beating analysts’ predictions of US$0.07 earnings per share.
Total revenue for the fourth-quarter ending December 31, was recorded at US$1.53 billion, also beating analysts’ predictions of US$1.47 billion.
Revenue throughout the US saw a 15% increase to US$1.1 billion, while international revenue grew 3% to US$461 million, revenue throughout EMEA grew by 24%, while it fell by 6% in the Asia-Pacific and 22% in Latin America.
There was also a notable increase in total revenue for apparel which increased by 18%, footwear revenue grew by 17%, but there was a 27% fall in accessory sales.
Commenting on record revenue, the impact of COVID-19 and future plans, UAA chief executive officer, Patrik Frisk said: “The final quarter of 2021 demonstrated the power and consistency of Under Armour’s strategic playbook, which allowed us to capitalize on improving brand strength and consumer demand.”
“By staying hyper-focused on operational excellence and serving the needs of athletes, we were able to deliver record revenue and earnings results for the full year.
“Amid a dynamic environment with ongoing COVID-19 impacts and resultant supply chain headwinds, I am proud of how consistently our global teams continue to execute our plan.
“As we navigate ongoing uncertainty in the marketplace, we remain focused on delivering industry-leading innovations, premium experiences, and empowering those who strive for more. Going forward, I am confident that we are running a stronger company – one that is able to deliver sustainable, profitable growth and value creation for our shareholders over the long term,” he said.
Partly down to rising shipping prices, selling, general and administrative expenses increased by 15% to US$676 million compared to US$586 million last year.
Under Armour issued a warning, stating that freight prices will weigh on profits in the coming months as the company has been paying for expensive air cargo to move products internationally.
Discussing the increase in shipping costs, UAA chief financial officer, David Bergman told analysts, that the pressures are a temporary speed bump, and that UAA will remain cautious and agile until shipping backlogs and congestion clear up.
Last year Under Armour announced they would be changing their fiscal year, after a three-month transition period from January 1, 2022, to March 31, 2022, Under Armour’s fiscal year begin on April 1, 2022 and run until March 31, 2023.
Earnings for this period are predicted to be between US$0.02 and US$0.03 per share, after supply chain constraints are limiting the amount of spring and summer products, putting pressure back on sales.
