Under Armour - Strong financial results and strategic steps for a better future
- Gross margin $UAA-1.1%:
- Q4 fiscal year 2024: Increased 1.7% to 45%.
- Full fiscal year 2024: Increase to 46.1%, an improvement of 1.3%.
- Causes of improvement: Reduction in product and transportation costs due to supply chain improvements.
- Negative factors: Exchange rate effects and increased direct-to-consumer marketing activities.
- Selling, general and administrative expenses $UAA-1.1% :
- Q4: Decreased 5% to $546 million.
- Fiscal 2024: Decrease of 2% to $2.3 billion.
- Spending Reduction: Indicates a potential improvement in the bottom line.
- Inventory Management $UAA-1.1% :
- End of Q4: Inventories decreased 19% to $958 million, indicating active inventory management.
- Cash Position and Debt $UAA-1.1% :
- Cash: $859 million at the end of Q4.
- Debt: No debt outstanding under the revolving credit facility.
- Strategic Steps $UAA-1.1% :
- Share repurchases: Announced a new $500 million share repurchase program, reflecting confidence in the company's financial position and future prospects.
🌟 Under Armour is showing strong financial health and strategic margin and cost improvements, strengthening their market position! 🏃♂️💪
The products are great, but as an investment, it doesn't appeal to me. If I had to pick something from this industry, it would be $NKE-1.0%, but I recently sold that one too.
I like their products. I have a few pieces at home, but I don't find their stock that attractive, unfortunately. This year both EPS and sales should be lower than last year, but the stock is already down quite a bit. Do you have it in your portfolio?