Executive Summary

• Under Armour reported 1Q17 EPS of $(0.01), ahead of expectations of $(0.04).
• Total revenues for 1Q17 were $1.12 billion versus expectations of $1.11 billion, and were up 6.6% year over year, driven by a 4% increase in wholesale revenues and a 13% increase in direct-to-consumer revenues. Apparel revenues increased by 7%, while footwear revenues were up 2% and accessories revenues were up 12%. North American revenues were down 1%, as new distribution was more than offset by a lack of business related to bankruptcies in 2016.
• Management reiterated its guidance for net revenues to increase by 11%–12% for the year, to reach nearly $5.4 billion; consensus calls for revenues of $5.36 billion. The company’s gross margin is expected to be down slightly from the 46.4% rate in 2016.