BALTIMORE, Nov. 8, 2023 – Under Armour, Inc. (NYSE: UA, UAA) announced unaudited financial results for its second quarter fiscal 2024, which ended September 30, 2023. The company reports its financial performance following accounting principles generally accepted in the United States of America ("GAAP"). This press release refers to "currency neutral" amounts, which are non-GAAP financial measures described below under the "Non-GAAP Financial Information" paragraph.

“Our second quarter results, particularly profitability, exceeded our expectations,” said Under Armour President and CEO Stephanie Linnartz. “Consequently, we are maintaining our fiscal 2024 operating income and EPS outlook even as we lower our revenue expectations primarily in response to challenges in North America during the back half of the year.”

Linnartz continued, “As we execute against our strategic priorities, we will continue to take a balanced approach to driving profitability in the near term while taking the necessary steps to invest in the talent, systems, and processes to drive the top line growth that Under Armour is capable of over the long term.”

•Revenue was flat versus the prior year at $1.6 billion (down 1 percent currency neutral).

–Wholesale revenue decreased 1 percent to $940 million, and direct-to-consumer revenue increased 3 percent to $596 million due to a 2 percent increase in eCommerce revenue, which represented 35 percent of the total direct-to-consumer business in the quarter, and a 4 percent increase in owned and operated store revenue.

–North America revenue decreased 2 percent to $991 million, and international revenue increased 5 percent to $573 million (up 3 percent currency neutral). In the international business, revenue increased 9 percent in EMEA (up 4 percent currency neutral) and 3 percent in Asia-Pacific (up 7 percent currency neutral). Revenue declined 8 percent in Latin America (down 19 percent currency neutral).

–Apparel revenue increased 3 percent to $1.1 billion. Footwear revenue was down 7 percent to $351 million. Accessories revenue increased 3 percent to $114 million.

•Gross margin increased 260 basis points to 48.0 percent, driven primarily by supply chain benefits related to lower freight expenses, partially offset by a channel mix impact related to a normalization of off-price sales.

•Selling, general & administrative expenses increased 2 percent to $606 million.

•Operating income was $146 million.

•Net Income was $110 million.

•Diluted earnings per share was $0.24.

•Inventory was up 6 percent to $1.1 billion.

•Cash and Cash Equivalents were $656 million at the end of the quarter, and no borrowings were outstanding under the company's $1.1 billion revolving credit facility.

Under Armour repurchased $50 million of its Class C common stock during the second quarter, reflecting 7.6

million shares retired. As of September 30, 2023, 42.5 million shares for $475 million had been repurchased under its two-year, $500 million program, which the Board of Directors approved in February 2022.

Key points related to Under Armour's fiscal year 2024 outlook include:

•Revenue is expected to be down 2 to 4 percent versus the previous expectation of "flat to up slightly."

•Gross margin is expected to be up 100 to 125 basis points versus the previous expectation of up 25 to 75 basis points.

•Selling, general & administrative expenses are expected to be "flat to down slightly" versus the previous expectation of "flat to up slightly."

•Operating income remains unchanged from the previous expectation of $310 million to $330 million.

•Effective tax rate remains unchanged from the previous expectation of a low twenties percentage range.

•Diluted earnings per share remain unchanged from the previous expectation of between $0.47 and $0.51.

•Capital expenditures are now expected to reach between $230 million and $250 million.

Under Armour will hold its second quarter fiscal 2024 conference call today at approximately 8:30 a.m. Eastern Time. The call will be webcast live at https://about.underarmour.com/investor-relations/financials and will be archived and available for replay about three hours after the live event.

This press release refers to “currency-neutral” results. Management believes this information is helpful to investors to compare the company’s results of operations period-over-period because it enhances visibility into its actual underlying results, excluding these impacts. Currency-neutral financial information is calculated to exclude changes in foreign currency exchange rates. These supplemental non-GAAP financial measures should not be considered in isolation. They should be contemplated in addition to, and not as an alternative to, the company’s reported results prepared per GAAP. Additionally, the company’s non-GAAP financial information may not be comparable to similarly titled measures reported by other companies.

Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories. Designed to empower human performance, Under Armour’s innovative products and experiences are engineered to make athletes better. For further information, please visit http://about.underarmour.com.

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, such as statements regarding our share repurchase program, our future financial condition or results of operations, our prospects and strategies for future growth, expectations regarding promotional activities, freight, product cost pressures, and foreign currency impacts, the impact of global economic conditions and inflation on our results of operations, the development and introduction of new products, the implementation of our marketing and branding strategies, the future benefits and opportunities from significant investments, and the impact of litigation or other proceedings.

In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “outlook,” “potential” or the negative of these terms or other comparable terminology. The forward-looking statements in this press release reflect our current views about future events. They are subject to risks, uncertainties, assumptions, and 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 the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, activity levels, 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 these forward-looking statements, including, but not limited to: changes in general economic or market conditions, including inflation, that could affect overall consumer spending in our industry; the impact of the COVID-19 pandemic on our industry and our business, financial condition and results of operations, including impacts on the global supply chain; failure of our suppliers, manufacturers or logistics providers to produce or deliver our products in a timely or cost-effective manner; labor or other disruptions at ports or our suppliers or manufacturers; increased competition causing us to lose market share or reduce the prices of our products or to increase our marketing efforts significantly; fluctuations in the costs of raw materials and commodities we use in our products and costs related to our supply chain (including labor); changes to the financial health of our customers; our ability to successfully execute our long-term strategies; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer shopping and engagement preferences and consumer demand for our products and manage our inventory in response to changing demands; loss of key customers, suppliers or manufacturers; our ability to effectively market and maintain a positive brand image; 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 manage the increasingly complex operations of our global business; the impact of global events beyond our control, including military conflicts; our ability to successfully manage or realize expected results from significant transactions and investments; our ability to effectively meet the expectations of our stakeholders with respect to environmental, social and governance practices; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; any disruptions, delays or deficiencies in the design, implementation or application of our global operating and financial reporting information technology system; our ability to attract key talent and retain the services of our senior management and other key employees; our ability to effectively drive operational efficiency in our business; our ability to access capital and financing required to manage our business on terms acceptable to us; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; risks related to foreign currency exchange rate fluctuations; our ability to comply with existing trade and other regulations, and the potential impact of new trade, tariff and tax regulations on our profitability; risks related to data security or privacy breaches; and our potential exposure to litigation and other proceedings. The forward-looking statements here 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 statement’s date or to reflect unanticipated events.

(1) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the Company’s operating segments but managed through the Company’s central foreign exchange risk management program, as well as subscription revenues from the Company's MapMyRun and MapMyRide platforms (collectively "MMR") and revenue from other digital business opportunities.

(1) Corporate Other primarily includes net revenues from foreign currency hedge gains and losses generated by entities within the Company’s operating segments but managed through the Company’s central foreign exchange risk management program, as well as subscription revenues from the Company's MapMyRun and MapMyRide platforms (collectively "MMR") and revenue from other digital business opportunities. Corporate Other also includes expenses related to the Company's central supporting functions.

(2) The percentage of operating income (loss) is calculated based on total segment net revenues. The operating income (loss) percentage for Corporate Other is not presented as a meaningful metric (NM).

As of September 30, 2023, and March 31, 2023

For the Six Months Ended September 30, 2023 and 2022

For the Three and Six Months Ended September 30, 2023

As of September 30, 2023, and 2022