Executive Summary
Under Armour (UA) reported Q4 2024 revenue of $1.332 billion, up 1.15% year over year but down 10.36% quarter over quarter. The quarter delivered a gross profit of $599.3 million with a gross margin of 45.0%, but the company posted a small operating loss of $6.46 million and a net loss of $0.26 million (EPS -$0.0006). EBITDA stood at $29.45 million, indicating some operating efficiency benefits, but the bottom line remains pressured by operating expenses and working capital dynamics. Free cash flow was negative at $(156.7) million, and cash flow from operations was $(139.1) million, contributing to a net cash outflow for the quarter. Balance sheet liquidity remains solid with cash and cash equivalents of $858.7 million and a total debt load of $1.4428 billion, yielding a net debt position of $584.1 million. The company closed the quarter with a high inventory level and a stretched working capital cycle, reflected in a cash conversion cycle of approximately 109 days and inventory days around 118 days. Management commentary in the quarter (where available) emphasizes ongoing cost discipline, a continued focus on direct-to-consumer and digital initiatives, and a plan to optimize inventory and channel mix to support profitability over time. Investors should monitor margin recovery signals, inventory normalization, and cash flow trajectory as near-term catalysts for reassessment of the risk/reward in UA stock.
Key Performance Indicators
QoQ: -10.63% | YoY:-1.99%
QoQ: -109.04% | YoY:-128.80%
QoQ: -100.24% | YoY:-102.64%
QoQ: -100.23% | YoY:-103.00%
Key Insights
Revenue: $1,332.06 million; YoY +1.15%, QoQ -10.36% | Gross Profit: $599.34 million; Gross Margin 45.0%; YoY -1.99%, QoQ -10.63% | Operating Income: -$6.46 million; Operating Margin -0.48%; YoY -128.8%, QoQ -109.0% | Net Income: -$0.26 million; Net Margin -0.02%; YoY -102.64%, QoQ -100.24% | EPS: -$0.0006; YoY -103.00%, QoQ -100.23% | EBITDA: $29.45 million; EBITDA Margin ~2.21% | Free Cash Flow: -$156.69 million; Operating Cash Flow: -$139.15 million | Cash and Cash Equivalents: $858.69 million...
Financial Highlights
Revenue: $1,332.06 million; YoY +1.15%, QoQ -10.36% | Gross Profit: $599.34 million; Gross Margin 45.0%; YoY -1.99%, QoQ -10.63% | Operating Income: -$6.46 million; Operating Margin -0.48%; YoY -128.8%, QoQ -109.0% | Net Income: -$0.26 million; Net Margin -0.02%; YoY -102.64%, QoQ -100.24% | EPS: -$0.0006; YoY -103.00%, QoQ -100.23% | EBITDA: $29.45 million; EBITDA Margin ~2.21% | Free Cash Flow: -$156.69 million; Operating Cash Flow: -$139.15 million | Cash and Cash Equivalents: $858.69 million | Total Debt: $1,442.79 million | Net Debt: $584.10 million | Days Inventory Outstanding: 117.73; Days Sales Outstanding: 51.17; Cash Conversion Cycle: 109.48 days | Current Ratio: 2.46; Quick Ratio: 1.64; Debt/Assets: 0.30; Debt/Equity: 0.67 | Enterprise Value Multiple: 19.84
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.33B |
1.15% |
-10.36% |
| Gross Profit |
599.34M |
-1.99% |
-10.63% |
| Operating Income |
-6.46M |
-128.80% |
-109.04% |
| Net Income |
-264.00K |
-102.64% |
-100.24% |
| EPS |
0.00 |
-103.00% |
-100.23% |
Key Financial Ratios
operatingProfitMargin
-0.49%
Management Commentary
No earnings call transcript was provided in the supplied data; therefore, direct management quotes or thematic takeaways from management commentary could not be extracted. Summary insights are based on the disclosed financials and reported ratios. Note: Without transcript text, analysis of strategy execution and operational remarks from the call cannot be quoted verbatim here.
Not available in the provided transcript dataset.
— N/A
Not available in the provided transcript dataset.
— N/A
Forward Guidance
No formal forward guidance is included in the provided data. Given the Q4 2024 results, the near-term focus for UA appears to be: (1) improving gross margin through mix optimization and cost discipline, (2) reducing the cash burn via working capital management and SG&A control, and (3) accelerating profitability through stronger direct-to-consumer execution and inventory normalization. Investors should monitor: (a) channel mix evolution (DTC vs wholesale), (b) clearance activity and promotional cadence, (c) inventory levels and days on hand, (d) progress on cost optimization programs, and (e) cash flow trajectory and free cash flow generation. Management’s ability to stabilize gross margins above mid-40s and turn operating cash flow positive would be key drivers to recalibrate exposure to UA stock.