News Release

07.26.2018

Under Armour Reports Second Quarter 2018 Results

BALTIMORE, July 26, 2018 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced financial results for the second quarter ended June 30, 2018. 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. References to adjusted financial measures exclude the impact of the company's restructuring plans and the related tax effects, as well as adjustments to our one-time impacts of the 2017 U.S. tax reform legislation, which we refer to as the U.S. Tax Act. Reconciliations of non-GAAP amounts to the most directly comparable financial measure calculated in accordance with GAAP are presented in supplemental financial information furnished with this release. All per share amounts are reported on a diluted basis.

Under Armour, Inc. Logo. (PRNewsFoto/Under Armour, Inc.)

"Through the first half of 2018, we are making progress toward our transformation of running a more operationally excellent company while amplifying the power of the Under Armour brand," said Under Armour Chairman and CEO Kevin Plank. "The ongoing improvements in our structure, systems and go-to-market process across our global business better position us to drive a more consistent, predictable path to deliver for our consumers, customers and shareholders over the long-term."

Second Quarter Review

  • Revenue was up 8 percent to $1.2 billion (up 7 percent currency neutral).
    • Revenue to wholesale customers increased 9 percent to $710 million and direct-to-consumer revenue was up 7 percent to $414 million. The direct-to-consumer business represented 35 percent of global revenue in the quarter.
    • North America revenue increased 2 percent to $843 million (up 1 percent currency neutral) and the international business continued to deliver strong growth with a 28 percent increase to $302 million (up 24 percent currency neutral), representing 26 percent of total revenue. Within the international business, revenue in EMEA was up 31 percent (up 25 percent currency neutral), up 34 percent in Asia-Pacific (up 28 percent currency neutral) and up 7 percent in Latin America (up 12 percent currency neutral).
    • Apparel revenue increased 10 percent to $747 million, driven by strength in training and running. Footwear revenue was up 15 percent to $271 million with strength in running and team sports. Accessories revenue decreased 14 percent to $106 million due to softer demand.
  • Gross margin decreased approximately 110 basis points to 44.8 percent due to inventory management initiatives and a $6 million impact related to restructuring efforts. Adjusted gross margin decreased 60 basis points to 45.3 percent driven predominantly by inventory management initiatives.
  • Selling, general and administrative expenses increased 10 percent to $553 million, or 47.0 percent of revenue driven by continued investments in our direct-to-consumer, footwear, and international businesses, along with a reserve related to a commercial dispute.
  • Restructuring and impairment charges were $79 million.
  • Operating loss was $105 million. Adjusted operating loss was $20 million.
  • Net loss was $96 million. Excluding the impact of the restructuring plan, adjusted net loss was $34 million.
  • Diluted loss per share was $0.21. Adjusted diluted loss per share was $0.08.
  • Inventory increased 11 percent to $1.3 billion.
  • Cash and cash equivalents increased 19 percent to $197 million.

2018 Restructuring Plan

On February 13, the company announced a 2018 restructuring plan, which detailed expectations to incur total estimated pre-tax restructuring and related charges of approximately $110 million to $130 million. After further review, the company has identified approximately $80 million of additional restructuring initiatives and now expects to incur approximately $190 million to $210 million of pre-tax restructuring and related charges in 2018. In the second quarter, we recognized pre-tax costs totaling $85 million consisting of $64 million in cash related charges and $21 million in non-cash charges. Based on the updated restructuring plan, in 2018 the company expects to incur:

  • Up to $155 million in cash related charges, consisting of up to $75 million in facility and lease terminations and up to $80 million in contract termination and other restructuring charges; and,
  • Up to $55 million in non-cash charges comprised of up to $20 million of inventory related charges and up to $35 million of asset related impairments.

Plank concluded, "As we work through our multi-year transformation, we continue to proactively attack underperforming areas of our business including our SG&A cost structure and inventory. All of this will help create a better and stronger Under Armour through even greater operational efficiencies. We are unwavering in building our global brand and confident we're on the right track."

Updated Fiscal 2018 Outlook

  • Net revenue is now expected to increase approximately 3 percent to 4 percent reflecting a low to mid-single-digit decline in North America and international growth of greater than 25 percent. From a product perspective, apparel is expected to grow at a mid-single digit rate, footwear at a low-single digit rate, and accessories is expected to decline at a low-single digit rate.
  • Gross margin is now expected to be flat to down slightly versus the prior year rate of 45.0 percent. Adjusted gross margin is now expected to improve slightly compared to 2017 as benefits from product costs and lower planned promotional activity are offset by increased inventory management actions.
  • Operating loss is now expected in the range of $50 million to $60 million. Excluding the impact of the restructuring plan, adjusted operating income is expected to be $130 million to $160 million.
  • Interest and other expense net is expected to be approximately $45 million.
  • Excluding the impact of the restructuring efforts, adjusted diluted earnings per share is expected to be in the range of $0.14 to $0.19.
  • Capital expenditures are now planned at approximately $200 million.

Conference Call and Webcast

Under Armour will hold its second quarter 2018 conference call and webcast today at approximately 8:30 a.m. Eastern Time. The call will be webcast live at http://investor.underarmour.com and will be archived and available for replay approximately three hours after the live event.

U.S. Tax Act

The U.S. Tax Act was enacted into law on December 22, 2017. The legislation contained several key tax provisions that affect Under Armour and, as required, the company included reasonable estimates of the income tax effects of the changes in tax law and tax rate in the company's 2017 financial results. These changes included a one-time mandatory transition tax on accumulated foreign earnings and a re-measuring of deferred tax assets which impacted our fourth quarter and full year of 2017. During the second quarter of 2018, the company revised its reasonable estimate made in the company's 2017 financial results for the re-measuring of deferred tax assets due to the U.S. Tax Act. Since the U.S. Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and additional accounting interpretations are expected over the next 12 months, the company considers the accounting of the transition tax, deferred tax re-measurements, and other items to be provisional. The company expects to finalize its one-time estimates related to the U.S. Tax Act within the one-year measurement period allowed by the SEC.

Non-GAAP Financial Information

This press release refers to "currency neutral" and "adjusted" results as well as "adjusted" forward looking estimates of the company's fiscal 2018 outlook. Currency neutral financial information is calculated to exclude the impact of changes in foreign currency. Management believes this information is useful to investors to facilitate a comparison of the company's results of operations period-over-period. Adjusted gross margin, adjusted operating income (loss), adjusted net loss, adjusted diluted loss per share and adjusted effective tax rate exclude the impact of restructuring and other related charges and the impact of the U.S. Tax Act, as applicable. Management believes this information is useful to investors because it provides enhanced visibility into the company's actual and expected underlying results excluding the impact of its restructuring plans and recent significant changes in U.S. tax laws. These non-GAAP financial measures should not be considered in isolation and should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Additionally, the company's non-GAAP financial information may not be comparable to similarly titled measures reported by other companies.

About Under Armour, Inc.

Under Armour, Inc., headquartered in Baltimore, Maryland is a leading inventor, marketer and distributor of branded performance athletic apparel, footwear and accessories. Designed to make all athletes better, the brand's innovative products are sold worldwide to consumers with active lifestyles. The company's Connected Fitness™ platform powers the world's largest digitally connected health and fitness community. For further information, please visit www.uabiz.com.

Forward Looking Statements

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, our anticipated charges and restructuring costs and the timing of these measures, the impact of recent tax reform legislation on our results of operations, the development and introduction of new products, the implementation of our marketing and branding strategies, and the future benefits and opportunities from significant investments. In many cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "assumes," "anticipates," "believes," "estimates," "predicts," "outlook," "potential" or the negative of these terms or other comparable terminology. The forward-looking statements contained in this press release reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to: changes in general economic or market conditions that could affect overall consumer spending or our industry; changes to the financial health of our customers; our ability to successfully execute our long-term strategies; our ability to successfully execute any restructuring plans and realize expected benefits; our ability to effectively drive operational efficiency in our business; our ability to manage the increasingly complex operations of our global business; our ability to comply with existing trade and other regulations, and the potential impact of new trade and tax regulations on our profitability; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer demand for our products and manage our inventory in response to changing demands; any disruptions, delays or deficiencies in the design, implementation or application of our new global operating and financial reporting information technology system; increased competition causing us to lose market share or reduce the prices of our products or to increase significantly our marketing efforts; fluctuations in the costs of our products; loss of key suppliers or manufacturers or failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner, including due to port disruptions; our ability to further expand our business globally and to drive brand awareness and consumer acceptance of our products in other countries; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; our ability to successfully manage or realize expected results from acquisitions and other significant investments or capital expenditures; risks related to foreign currency exchange rate fluctuations; our ability to effectively market and maintain a positive brand image; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; risks related to data security or privacy breaches, including the 2018 data security issue related to our Connected Fitness business; our ability to raise additional capital required to grow our business on terms acceptable to us; our potential exposure to litigation and other proceedings; and our ability to attract key talent and retain the services of our senior management and key employees. The forward-looking statements contained in this press release reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

 

 

Under Armour, Inc.

For the Three and Six Months Ended June 30, 2018 and 2017

(Unaudited; in thousands, except per share amounts)

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2018

 

% of Net
Revenues

 

2017

 

% of Net
Revenues

 

2018

 

% of Net
Revenues

 

2017

 

% of Net
Revenues

Net revenues

 

$

1,174,859

   

100.0%

 

$

1,091,192

   

100.0%

 

$

2,360,229

   

100.0%

 

$

2,211,036

   

100.0%

Cost of goods sold

 

648,275

   

55.2%

 

589,999

   

54.1%

 

1,310,192

   

55.5%

 

1,201,907

   

54.4%

Gross profit

 

526,584

   

44.8%

 

501,193

   

45.9%

 

1,050,037

   

44.5%

 

1,009,129

   

45.6%

Selling, general and administrative
expenses

 

552,619

   

47.0%

 

502,880

   

46.1%

 

1,067,253

   

45.2%

 

1,003,280

   

45.4%

Restructuring and impairment
charges

 

78,840

   

6.7%

 

3,098

   

0.3%

 

116,320

   

4.9%

 

3,098

   

0.1%

Income (loss) from operations

 

(104,875)

   

(8.9)%

 

(4,785)

   

(0.4)%

 

(133,536)

   

(5.7)%

 

2,751

   

0.1%

Interest expense, net

 

(8,552)

   

(0.7)%

 

(7,841)

   

(0.7)%

 

(17,116)

   

(0.7)%

 

(15,662)

   

(0.7)%

Other expense, net

 

(8,069)

   

(0.7)%

 

(2,884)

   

(0.3)%

 

(5,181)

   

(0.2)%

 

(313)

   

—%

Loss before income taxes

 

(121,496)

   

(10.3)%

 

(15,510)

   

(1.4)%

 

(155,833)

   

(6.6)%

 

(13,224)

   

(0.6)%

Income tax expense (benefit)

 

(26,090)

   

(2.2)%

 

(3,202)

   

(0.3)%

 

(30,183)

   

(1.3)%

 

1,357

   

0.1%

Loss from equity method investment

 

138

   

%

 

   

%

 

138

   

—%

 

   

—%

Net loss

 

(95,544)

   

(8.1)%

 

(12,308)

   

(1.1)%

 

(125,788)

   

(5.3)%

 

(14,581)

   

(0.7)%

                                 

Basic net loss per share of Class A,
B and C common stock

 

$

(0.21)

       

$

(0.03)

       

$

(0.28)

       

$

(0.03)

     

Diluted net loss per share of Class
A, B and C common stock

 

$

(0.21)

       

$

(0.03)

       

$

(0.28)

       

$

(0.03)

     

Weighted average common shares outstanding Class A, B and C common stock

Basic

 

444,626

       

440,423

       

443,844

       

439,894

     

Diluted

 

444,626

       

440,423

       

443,844

       

439,894

     

 

 

 

Under Armour, Inc.

For the Three and Six Months Ended June 30, 2018 and 2017

(Unaudited; in thousands)

 

NET REVENUES BY PRODUCT CATEGORY

 
   

Quarter Ended June 30,

 

Six Months Ended June 30,

   

2018

 

2017

 

% Change

 

2018

 

2017

% Change

Apparel

 

$

747,294

   

$

680,653

   

9.8%

 

$

1,513,569

   

$

1,396,090

 

8.4%

Footwear

 

271,375

   

236,925

   

14.5%

 

543,145

   

506,583

 

7.2%

Accessories

 

105,906

   

122,588

   

(13.6)%

 

198,064

   

211,686

 

(6.4)%

Total net sales

 

1,124,575

   

1,040,166

   

8.1%

 

2,254,778

   

2,114,359

 

6.6%

Licensing revenues

 

21,172

   

25,110

   

(15.7)%

 

47,513

   

49,315

 

(3.7)%

Connected Fitness

 

29,112

   

25,916

   

12.3%

 

57,938

   

47,362

 

22.3%

Total net revenues

 

$

1,174,859

   

$

1,091,192

   

7.7%

 

$

2,360,229

   

$

2,211,036

 

6.7%

 

NET REVENUES BY SEGMENT

 
   

Quarter Ended June 30,

 

Six Months Ended June 30,

   

2018

 

2017

 

% Change

 

2018

 

2017

% Change

North America

 

$

843,383

   

$

829,805

   

1.6 %

 

$

1,710,928

   

$

1,701,076

 

0.6%

EMEA

 

135,901

   

103,896

   

30.8%

 

262,833

   

206,751

 

27.1%

Asia-Pacific

 

125,706

   

93,574

   

34.3%

 

241,259

   

179,392

 

34.5%

Latin America

 

40,757

   

38,001

   

7.3%

 

87,271

   

76,455

 

14.1%

Connected Fitness

 

29,112

   

25,916

   

12.3%

 

57,938

   

47,362

 

22.3%

Total net revenues

 

$

1,174,859

   

$

1,091,192

   

7.7%

 

$

2,360,229

   

$

2,211,036

 

6.7%

 

INCOME (LOSS) FROM OPERATIONS

 
   

Quarter Ended June 30,

 

Six Months Ended June 30,

   

2018

 

2017

 

% Change

 

2018

 

2017

 

% Change

North America

 

$

(93,192)

   

$

(5,417)

   

1,620.4%

 

$

(136,688)

   

$

(2,150)

   

6,257.6%

EMEA

 

(10,155)

   

(4,616)

   

120.0%

 

(13,782)

   

(3,028)

   

355.2%

Asia-Pacific

 

18,657

   

15,249

   

22.3%

 

39,898

   

35,365

   

12.8%

Latin America

 

(21,791)

   

(8,093)

   

(169.3)%

 

(27,661)

   

(15,952)

   

(73.4)%

Connected Fitness

 

1,606

   

(1,908)

   

184.2%

 

4,696

   

(11,484)

   

140.9%

Income (loss) from operations

 

$

(104,875)

   

$

(4,785)

   

2,091.7%

 

$

(133,537)

   

$

2,751

   

(4,954.1)%

 

Under Armour, Inc.

As of June 30, 2018, December 31, 2017 and June 30, 2017

(Unaudited; in thousands)

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 
   

June 30, 2018

 

December 31,
2017

 

June 30, 2017

Assets

           

Current assets

           

Cash and cash equivalents

 

$

196,879

   

$

312,483

   

$

165,685

 

Accounts receivable, net

 

724,945

   

609,670

   

602,795

 

Inventories

 

1,299,332

   

1,158,548

   

1,168,786

 

Prepaid expenses and other current assets

 

340,359

   

256,978

   

229,204

 

Total current assets

 

2,561,515

   

2,337,679

   

2,166,470

 

Property and equipment, net

 

835,427

   

885,774

   

875,005

 

Goodwill

 

551,160

   

555,674

   

580,446

 

Intangible assets, net

 

45,880

   

46,995

   

59,866

 

Deferred income taxes

 

111,746

   

82,801

   

125,358

 

Other long term assets

 

135,424

   

97,444

   

87,099

 

Total assets

 

$

4,241,152

   

$

4,006,367

   

$

3,894,244

 

Liabilities and Stockholders' Equity

           

Revolving credit facility, current

 

$

   

$

125,000

   

$

150,000

 

Accounts payable

 

691,163

   

561,108

   

483,210

 

Accrued expenses

 

258,567

   

296,841

   

232,680

 

Customer refund liability

 

303,730

   

   

 

Current maturities of long term debt

 

27,000

   

27,000

   

27,000

 

Other current liabilities

 

57,939

   

50,426

   

43,649

 

Total current liabilities

 

1,338,399

   

1,060,375

   

936,539

 

Long term debt, net of current maturities

 

752,370

   

765,046

   

777,717

 

Other long term liabilities

 

226,471

   

162,304

   

156,217

 

Total liabilities

 

2,317,240

   

1,987,725

   

1,870,473

 

Total stockholders' equity

 

1,923,912

   

2,018,642

   

2,023,771

 

Total liabilities and stockholders' equity

 

$

4,241,152

   

$

4,006,367

   

$

3,894,244

 

 

Under Armour, Inc.

For the Six Months Ended June 30, 2018 and 2017

(Unaudited; in thousands)

 

CONSOLIDATED STATEMENT OF CASH FLOWS

 
 

Six Months Ended June 30,

 

2018

 

2017

Cash flows from operating activities

     

Net loss

$

(125,786)

   

$

(14,581)

 

Adjustments to reconcile net loss to net cash provided by (used in operating activities

     

Depreciation and amortization

91,271

   

83,367

 

Unrealized foreign currency exchange rate (gains) losses

13,151

   

(29,393)

 

Loss on disposal of property and equipment

191

   

715

 

Impairment charges

11,965

   

 

Amortization of bond premium

127

   

127

 

Stock-based compensation

20,673

   

24,776

 

Excess tax deficiency from stock-based compensation arrangements

   

1,062

 

Deferred income taxes

(35,969)

   

13,735

 

Changes in reserves and allowances

(238,005)

   

(8,581)

 

Changes in operating assets and liabilities:

     

Accounts receivable

116,896

   

33,787

 

Inventories

(158,430)

   

(227,190)

 

Prepaid expenses and other assets

(54,422)

   

(12,541)

 

Other non-current assets

768

   

451

 

Accounts payable

160,164

   

84,391

 

Accrued expenses and other liabilities

48,939

   

33,426

 

Customer refund liability

307,190

   

 

Income taxes payable and receivable

(12,716)

   

(46,320)

 

Net cash provided by (used in) operating activities

146,007

   

(62,769)

 

Cash flows from investing activities

     

Purchases of property and equipment

(95,607)

   

(167,273)

 

Sale of property and equipment

11,285

   

 

Purchases of other assets

(2,536)

   

 

Purchase of equity method investment

(39,207)

   

 

Net cash used in investing activities

(126,065)

   

(167,273)

 

Cash flows from financing activities

     

Proceeds from long term debt and revolving credit facility

210,000

   

380,000

 

Payments on long term debt and revolving credit facility

(348,500)

   

(243,500)

 

Employee taxes paid for shares withheld for income taxes

(1,759)

   

(2,474)

 

Proceeds from exercise of stock options and other stock issuances

8,913

   

6,638

 

Payments of debt financing costs

(11)

   

 

Other financing fees

87

   

 

Net cash provided by (used in) financing activities

(131,270)

   

140,664

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(2,487)

   

4,593

 

Net decrease in cash, cash equivalents and restricted cash

(113,815)

   

(84,785)

 

Cash, cash equivalents and restricted cash

     

Beginning of period

318,135

   

250,470

 

End of period

$

204,320

   

$

165,685

 

 

Under Armour, Inc.

For the Three months ended June 30, 2018

(Unaudited)

 

The table below presents the reconciliation of net revenue growth calculated in accordance with GAAP to
currency neutral net revenue which is a non-GAAP measure. See "Non-GAAP Financial Information"
above for further information regarding the Company's use of non-GAAP financial measures.

 

CURRENCY NEUTRAL NET REVENUE GROWTH/(DECLINE) RECONCILIATION

 
   

Three months
ended June 30,

Total Net Revenue

   

Net revenue growth - GAAP

 

7.7%

Foreign exchange impact

 

(1.2)%

Currency neutral net revenue growth - Non-GAAP

 

6.5%

     

North America

   

Net revenue growth - GAAP

 

1.6%

Foreign exchange impact

 

(0.3)%

Currency neutral net revenue growth - Non-GAAP

 

1.3%

     

EMEA

   

Net revenue growth - GAAP

 

30.8%

Foreign exchange impact

 

(5.6)%

Currency neutral net revenue growth - Non-GAAP

 

25.2%

     

Asia-Pacific

   

Net revenue growth - GAAP

 

34.3%

Foreign exchange impact

 

(6.5)%

Currency neutral net revenue growth - Non-GAAP

 

27.8%

     

Latin America

   

Net revenue growth - GAAP

 

7.3%

Foreign exchange impact

 

5.1%

Currency neutral net revenue growth - Non-GAAP

 

12.4%

     

Total International

   

Net revenue growth - GAAP

 

28.4%

Foreign exchange impact

 

(4.2)%

Currency neutral net revenue growth - Non-GAAP

 

24.2%

 

Under Armour, Inc.

For the Three months ended June 30, 2018

(Unaudited)

 

The tables below present the reconciliation of the Company's consolidated statement of operations presented in accordance with
GAAP to certain adjusted non-GAAP financial measures discussed in this press release. See "Non-GAAP Financial Information"
above for further information regarding the Company's use of non-GAAP financial measures.

 

ADJUSTED GROSS MARGIN RECONCILIATION

 
   

Quarter Ended June 30, 2018

Gross margin

 

44.8%

Add: Impact of restructuring

 

0.5%

Adjusted gross margin

 

45.3%

 

ADJUSTED OPERATING LOSS RECONCILIATION

 
   

Quarter Ended June 30, 2018

Loss from operations

 

$

(105)

Add: Impact of restructuring

 

85

Adjusted operating loss

 

$

(20)

 

ADJUSTED NET LOSS RECONCILIATION

 
   

Quarter Ended June 30, 2018

Net loss

 

$

(96)

Add: Impact of restructuring

 

62

Adjusted net loss

 

$

(34)

 

ADJUSTED DILUTED LOSS PER SHARE RECONCILIATION

 
   

Quarter Ended June 30, 2018

Diluted net loss per share

 

$

(0.21)

Add: Estimated impact of restructuring

 

0.13

Adjusted diluted loss per share

 

$

(0.08)

 

ADJUSTED EFFECTIVE TAX RATE RECONCILIATION

 
   

Quarter Ended June 30, 2018

Effective tax rate

 

21.5%

Less: Impact of US tax reform

 

(3.1)%

Less: Impact of restructuring

 

(10.0)%

Adjusted effective tax rate

 

8.4%

 

Under Armour, Inc.

Outlook for the Year Ending December 31, 2018

 

The tables below present the reconciliation of the Company's fiscal 2018 outlook for income from operations
calculated in accordance with GAAP to adjusted operating income. This adjusted amount is a non-GAAP financial
measure. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-
GAAP financial measures.

 

ADJUSTED OPERATING INCOME RECONCILIATION

 
   

Year Ending December 31, 2018

(in millions)

 

Low End

 

High End

Loss from operations

 

$

(60)

   

$

(50)

 

Add: Estimated impact of restructuring (1)

 

190

   

190

 

Adjusted operating income

 

$

130

   

$

140

 
 

(1) The estimated impact of restructuring plan presented above assumes the low end of the Company's estimated range of 2018 restructuring and related charges.

 

The company is not able to provide a reconciliation of the non-GAAP adjusted effective tax rate or adjusted diluted earnings per share to the GAAP effective tax rate or diluted earnings per share for its 2018 outlook. As a result of the 2018 restructuring plan, the company's GAAP net income for fiscal year 2018 is expected to be a net loss, and therefore the GAAP effective tax rate is subject to significant variability. Given this variability, the company cannot provide a meaningful outlook of the GAAP effective tax rate or diluted loss per share without unreasonable effort. These non-GAAP measures exclude the impact of the 2018 restructuring plan.

 

Under Armour, Inc.

For the Three months ended June 30, 2018 and 2017

 

BRAND HOUSE AND FACTORY HOUSE DOOR COUNT

   

As of June 30,

   

2018

 

2017

Factory House

 

161

 

160

Brand House

 

15

 

19

  North America total doors

 

176

 

179

         

Factory House

 

61

 

45

Brand House

 

65

 

44

  International total doors

 

126

 

89

         

Factory House

 

222

 

205

Brand House

 

80

 

63

  Total doors

 

302

 

268

 

 

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SOURCE Under Armour, Inc.

 

 

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