Under Armour raises FY25 adjusted EPS view to 19c-22c from 18c-21c

Consensus 20c. Backs FY25 revenue view down at a low-double-digit percentage range, consensus $5.08B. Sees FY25 capital expenditures $200M-$220M. The company said, “Revenue is expected to be down at a low double-digit percentage rate. This includes an expected 14 to 16 percent decline (previously a 15 to 17 percent decline) in North America as the company works to reset this business meaningfully and a low-single-digit percent decline in its international business, including flat results in EMEA offset by a high-single-digit decline in its Asia-Pacific business due to developing macroeconomic pressures. Gross margin is expected to be up 75 to 100 basis points compared to the prior year, driven by a material reduction in promotional and discounting activities in the company’s direct-to-consumer business and product costing benefits. This is expected to be partially offset by emerging headwinds from higher ocean freight costs, unfavorable impacts from changes in foreign currency, and unfavorable channel mix. Selling, general, and administrative expenses are expected to be up at a mid-to-high-single digit percent rate due to litigation expenses. Adjusted selling, general, and administrative expenses are expected to be down at a low-to-mid-single digit rate. Operating loss is expected to be $194 to $214 million. Excluding the mid-point of anticipated restructuring charges and the litigation reserve expense, adjusted operating income is expected to be $140 to $160 million versus the previous expectation of $130 to $150 million. Diluted loss per share is expected to be between $0.53 and $0.56, and adjusted diluted earnings per share are expected to be between $0.19 and $0.22. Capital expenditures are expected to be between $200 to $220 million.”