Executive Summary

• Under Armour reported 4Q16 adjusted EPS of $0.23, down from $0.24 in the year-ago quarter and missing the consensus estimate by $0.02. Revenues were $1.31 billion, up 11.7% year over year but also missing the consensus estimate, which called for revenues of $1.41 billion. Management commented that numerous challenges and disruptions in North American retail had tempered the company’s results.
• Footwear revenues increased by 36.4%, to $228 million, driven by accelerated growth in the running and basketball categories. Apparel revenues increased by 7.4%, to $929 million, driven by strength in the golf and basketball categories.
• For 2017, Under Armour expects revenue to grow by 11%–12%, to nearly $5.4 billion, which is below the consensus estimate of $6.06 billion. Separately, the company announced that its CFO, Chip Molloy, has decided to leave the company due to personal reasons and that David Bergman, SVP, Corporate Finance, will serve as acting CFO.