From Investing.com: 2024-05-16 20:13:22

Under Armour CEO Kevin Plank outlines strategy for brand revitalization during Q4 2024 earnings call. Focus on men’s apparel and streamlining product lines to expect low double-digit revenue decline in fiscal 2025, with 15-17% dip in North America. $500 million share buyback program announced. Challenges include competition, leadership changes, and market-specific hurdles.

Under Armour to prioritize digital, team sports, and premium wholesale partners to combat expected revenue declines in North America. Rebuilding with new strategies to cut SKU count, enhance go-to-market capabilities, and focus on men’s apparel. Company forecasts tough fiscal 2025 but anticipates improved gross margins and expansion in international markets.

Under Armour reports 5% revenue decline in Q4 2024, with 10% drop in North America, leading to overall 3% revenue decrease in fiscal 2024. Operating loss expected in Q1 of fiscal 2025. Adjusted SG&A expenses down 5%, inventory decreased by 19%. Gross margin increased to 46.1% in fiscal 2024.

Under Armour’s financials show mixed picture, with low earnings multiple indicating undervaluation. Company trading at P/E Ratio of 7.23. Strong cash position of $859 million. Volatile stock price movements, but profitable predictions for the future. Liquid assets exceed short-term obligations. Company refrains from paying dividends, focusing on reinvestment and buyback programs.



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