Latest news with #Footwear
Yahoo
2 days ago
- Business
- Yahoo
Under Armour Inc (UAA) Q1 2026 Earnings Call Highlights: Navigating Revenue Declines and ...
Revenue: Declined 4% to $1.1 billion. North America Revenue: Declined 5% due to decreased full price wholesale and lower e-commerce sales. EMEA Revenue: Increased 10% (6% adjusted for currency), with growth across all channels. APAC Revenue: Decreased 10% on both reported and currency-neutral basis. Latin America Revenue: Declined 15%, 8% on a currency-neutral basis. Wholesale Revenue: Declined 5% with lower full price and distributor sales. Direct-to-Consumer Revenue: Declined 3%, with a 12% decline in e-commerce sales. Licensing Revenues: Increased 12%. Apparel Revenue: Declined 1%. Footwear Revenue: Down 14% across all categories. Accessories Revenue: Grew 8%. Gross Margin: Increased by 70 basis points to 48.2%. SG&A Expenses: Decreased 37% to $530 million. Operating Income: $3 million; adjusted operating income was $24 million. Adjusted Diluted EPS: $0.02 for the quarter. Inventory: $1.1 billion, a 2% increase year-over-year. Cash Balance: $911 million. Tariff Costs: Estimated $100 million in additional costs for fiscal '26. Warning! GuruFocus has detected 3 Warning Sign with UAA. Release Date: August 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Under Armour Inc (NYSE:UAA) is undergoing a bold reinvention to become a sharper, more focused brand, blending sports, style, and innovation with financial discipline. The company is seeing brand health improvements, with cultural relevance returning and increased interest from talent wanting to join. EMEA is outperforming, and North America and APAC are on paths toward better stability, with team sports heating up and digital engagement increasing. Under Armour Inc (NYSE:UAA) has achieved significant progress in realigning its product engine, simplifying operations, and positioning itself to better serve athletes, customers, and shareholders. The company is on track to meet its goal of reducing SKUs by 25%, which is expected to lead to sharper execution and better pricing. Negative Points Under Armour Inc (NYSE:UAA) is facing challenges from limited spending, higher promotions, and a dynamic domestic tariff policy. The company reported a 4% decline in first-quarter revenue, with North America revenue declining 5% due to decreased full-price wholesale business and lower e-commerce sales. APAC revenue decreased 10% due to weak consumer confidence amid a highly competitive and promotional market. Footwear revenue was down 14% in the quarter, reflecting a challenging consumer demand environment and deliberate work to optimize the business. The company is facing approximately $100 million in additional tariff-related costs, which, along with softer-than-expected demand, is projected to reduce profitability to about half of last year's levels. Q & A Highlights Q: How are tariffs impacting demand from your wholesale channel partners, and what are some signs of improving brand health in North America? A: Kevin A. Plank, President and CEO, explained that while the tariff environment is challenging, Under Armour is focusing on creating unique products that only UA can make, which helps mitigate tariff impacts. He noted that brand health is improving, with increased traction in base layer products and rising brand perception among 18 to 34-year-olds. Retailer confidence is also growing, with positive comps in men's and women's apparel at key retailers. Q: Can you discuss the SKU cleanup and promotional strategy in the context of the Q2 revenue guide? A: David Bergman, CFO, stated that Q2 is expected to be the toughest quarter, with North America facing a low double-digit decline due to order book challenges and traffic issues. While progress was made last year in reducing promotions, the current environment makes further progress difficult. The focus remains on maintaining discipline and not regressing in promotional strategies. Q: How is Under Armour engaging the 16 to 24-year-old demographic, and what improvements are being seen? A: Kevin A. Plank highlighted that brand perception is improving among 18 to 34-year-olds, with increased brand awareness. The company is seeing positive engagement with new sportswear styles and partnerships with influencers, which are helping to give the brand more relevance and permission among younger consumers. Q: What are the key factors contributing to the North America sales decline in Q2, and are there any cancellations tied to price increases? A: David Bergman noted that the decline is due to a challenging Spring/Summer '25 order book, traffic challenges, and a promotional e-commerce environment. There have been no significant cancellations tied to price increases, but footwear is facing more headwinds than apparel. The company expects improvement in the back half of the year as new products are introduced. Q: How is Under Armour addressing the current macroeconomic challenges in North America, and what actions are being taken in DTC channels? A: Kevin A. Plank expressed confidence in the brand's momentum, particularly with core products like base layers. David Bergman added that the company is maintaining discipline in e-commerce promotions and enhancing product assortments in Factory House stores to drive conversion despite traffic declines. The focus is on improving sales quality and creating a premium marketplace. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
Crocs's (NASDAQ:CROX) Q2 Earnings Results: Revenue In Line With Expectations But Stock Drops 27.3%
Footwear company Crocs (NASDAQ:CROX) met Wall Street's revenue expectations in Q2 CY2025, with sales up 3.4% year on year to $1.15 billion. On the other hand, next quarter's revenue guidance of $956 million was less impressive, coming in 10.7% below analysts' estimates. Its non-GAAP profit of $4.23 per share was 5.3% above analysts' consensus estimates. Is now the time to buy Crocs? Find out in our full research report. Crocs (CROX) Q2 CY2025 Highlights: Revenue: $1.15 billion vs analyst estimates of $1.15 billion (3.4% year-on-year growth, in line) Adjusted EPS: $4.23 vs analyst estimates of $4.02 (5.3% beat) Adjusted EBITDA: $329 million vs analyst estimates of $315.8 million (28.6% margin, 4.2% beat) Revenue Guidance for Q3 CY2025 is $956 million at the midpoint, below analyst estimates of $1.07 billion Operating Margin: -37.2%, down from 29.3% in the same quarter last year due to noncash impairment charges related to the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill of $430 million and $307 million, respectively, during the three months ended June 30, 2025 Free Cash Flow Margin: 23.4%, down from 34.6% in the same quarter last year Constant Currency Revenue rose 2.7% year on year (4.8% in the same quarter last year) Market Capitalization: $5.9 billion Company Overview Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Crocs's 28.3% annualized revenue growth over the last five years was exceptional. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Crocs's recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.2% over the last two years was well below its five-year trend. We can better understand the company's sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 3.6% year-on-year growth. Because this number aligns with its normal revenue growth, we can see that Crocs has properly hedged its foreign currency exposure. This quarter, Crocs grew its revenue by 3.4% year on year, and its $1.15 billion of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 10% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 1.8% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will face some demand challenges. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Crocs's operating margin has shrunk over the last 12 months, but it still averaged 15.9% over the last two years, solid for a consumer discretionary business. This shows it generally manages its expenses well, and its elite historical revenue growth also suggests its margin dropped because it ramped up investments to capture market share. We'll keep a close eye to see if this strategy pays off. In Q2, Crocs generated an operating margin profit margin of negative 37.2%, down 66.5 percentage points year on year due to noncash impairment charges related to the indefinite-lived HEYDUDE trademark and HEYDUDE Brand reporting unit goodwill of $430 million and $307 million, respectively, during the three months ended June 30, 2025. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Crocs's EPS grew at an astounding 47.4% compounded annual growth rate over the last five years, higher than its 28.3% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its operating margin didn't improve. In Q2, Crocs reported adjusted EPS at $4.23, up from $4.01 in the same quarter last year. This print beat analysts' estimates by 5.3%. Over the next 12 months, Wall Street expects Crocs's full-year EPS of $13.35 to shrink by 4.5%. Key Takeaways from Crocs's Q2 Results It was encouraging to see Crocs beat analysts' adjusted operating income expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its revenue guidance for next quarter missed and its constant currency revenue fell slightly short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 27.3% to $76.55 immediately after reporting. Is Crocs an attractive investment opportunity at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. 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Hindustan Times
02-08-2025
- Business
- Hindustan Times
Yogi Adityanath reviews UP's draft leather policy amid push for 22 lakh jobs
Chief minister Yogi Adityanath on Friday reviewed a draft of the Uttar Pradesh Footwear, Leather and Non-Leather Sector Development Policy 2025 amid a move to adopt a cluster-based development model as a core strategy that could generate 22 lakh new jobs. Uttar Pradesh chief minister Yogi Adityanath has emphasised the importance of identifying regions in the state best suited for industry-specific development (HT FILE PHOTO) He called for a result-driven policy to unlock the full potential of the state's micro, small and medium enterprises (MSMEs). The initiative comes when Uttar Pradesh is taking steps to position its footwear, leather, and non-leather manufacturing sector on the global map. Chairing a meeting of the MSME department, Adityanath emphasized the importance of identifying regions in the state best suited for industry-specific development. He highlighted the state's strong base of skilled artisans, raw materials, and industrial hubs like Agra, Kanpur and Unnao. Currently, India ranks as the second-largest producer and consumer in the world in the leather sector, with the state playing a significant role. Over 200 operational tanneries are located in Kanpur and Unnao, while Agra is recognized as the 'Footwear Capital' of the country. Integrating production, design, research, and training on a single platform could not only attract large-scale investments, but also generate employment opportunities for lakhs of youth, the chief minister said. He stressed on the need to develop key infrastructure like flatted factory complexes to offer modern, efficient workspaces for industrial units. During the meeting, officials apprised the CM that the proposed policy could generate around 22 lakh new jobs in the coming years. The chief minister said the policy should not only promote leather and non-leather footwear manufacturing units, but also extend special incentives to ancillary units producing components like buckles, zips, soles, insoles, laces, dyes, chemicals, heels, threads, tags and labels. He advocated support for units manufacturing specialised machinery for leather stitching, cutting, moulding, and production of non-leather safety shoes. This integrated approach would help establish a complete and localised 'design-to-delivery' ecosystem within the state, the chief minister said. He also underlined the need for robust strategies for skilling, packaging, and marketing to enhance product quality and competitiveness. The meeting also included a discussion on the proposed Uttar Pradesh Industrial Asthan Policy, which aims at streamlining and improving the process of industrial land allotment, lease execution, construction, and production in the state. Officials present at the meeting cited several challenges in the current system, including inefficient land utilisation, lease execution complexities, unauthorised mortgaging and subletting, and idle plots. The new policy aims to eliminate these hurdles by introducing a transparent, streamlined, and time-bound system. Plot allotment will be conducted via e-auctions or other transparent methods, with land prices determined area-wise. However, land rates for anchor units will be set by the state government. 'A clear, simplified, and accountable process—from land allotment to lease execution, construction, and production—would provide confidence to investors and catalyze industrial growth,' the chief minister said. He also suggested the adoption of a 'lease rent model' to ensure optimal utilization of limited industrial land, minimize capital expenditure for investors, and accelerate development. Adityanath also advocated incentives such as capital subsidies, stamp duty exemptions, and electricity and logistics support, along with a single-window approval system. He directed officials to develop an integrated online portal for applications and disbursement of incentives to ensure a fully digital, seamless and trackable policy implementation process.
Indian Express
01-08-2025
- Business
- Indian Express
Yogi Adityanath calls for result-driven UP footwear & leather policy to unlock its full potential
Chief Minister Yogi Adityanath on Friday reviewed the draft of the Uttar Pradesh Footwear, Leather and Non-Leather Sector Development Policy, 2025, and underlined the need for making the document practical and result-driven to unlock its full potential. Chairing a meeting of the MSME Department, the CM instructed officials to adopt a cluster-based development model as a core strategy and emphasised the importance of identifying regions best suited for industry-specific development. Highlighting the state's strong base — skilled artisans, raw materials, and industrial hubs like Agra, Kanpur, and Unnao, he said integrated production, design, research, and training on a single platform will attract large-scale investments. The Chief Minister stressed the need to develop key infrastructure like flatted factory complexes to offer modern, efficient work spaces for industrial units. He was informed by officials that the proposed policy could generate around 22 lakh new jobs in the coming years — marking a potential turning point in Uttar Pradesh's rise as a global hub of footwear and leather manufacturing. Currently, India ranks as the second-largest producer and consumer in the world in the footwear and leather sector, with Uttar Pradesh playing a significant role. Over 200 operational tanneries are located in Kanpur and Unnao, while Agra is recognised as the 'Footwear Capital' of the country. The Chief Minister emphasised that the policy should not only promote leather and non-leather footwear manufacturing units, but also extend special incentives to ancillary units producing components like buckles, zips, soles, insoles, laces, dyes, chemicals, heels, threads, tags, and labels. He also stressed support for units manufacturing specialised machinery for leather stitching, cutting, moulding, and production of non-leather safety shoes. This integrated approach, he said, would help establish a complete and localised 'design-to-delivery' ecosystem within the state. He highlighted the need for robust strategies for skilling, packaging, and marketing to enhance product quality and competitiveness. The meeting also included a discussion on the proposed Uttar Pradesh Industrial Asthan Policy. Officials noted several challenges in the current system, including inefficient land utilisation, lease execution complexities, unauthorised mortgaging and subletting and idle plots. The new policy aims to eliminate these hurdles by introducing a transparent, streamlined, and time-bound system, it was informed. Plot allotment will be conducted via e-auctions or other transparent methods, with land prices determined area-wise. However, land rates for anchor units will be set by the state government, they said. Calling the proposed policy 'practical and forward looking,' the Chief Minister said, 'A clear, simplified and accountable process — from land allotment to lease execution, construction, and production—would provide confidence to investors and catalyze industrial growth.' He also suggested the adoption of a 'lease rent model' to ensure optimal utilisation of limited industrial land, minimise capital expenditure for investors, and accelerate development. To promote private industrial parks, the CM advocated for incentives such as capital subsidies, stamp duty exemptions, and electricity and logistics support, along with a single-window approval system. He directed the officials to develop an integrated online portal for applications and disbursement of incentives to ensure a fully digital, seamless, and trackable policy implementation process.
Hans India
01-08-2025
- Business
- Hans India
New Policy to transform UP into global leather footwear manufacturing hub: CM Yogi
UP's new footwear-leather policy to create 22 lakh jobs Chief Minister directs development of flatted factory complexes for footwear industry Policy to boost footwear-related ancillary units and machinery manufacturing Special focus on buckles, zips, soles, insoles, laces, chemicals, heels etc. New industrial establishment policy will come soon, and the process of land allocation will be transparent and digital Efforts to simplify e-auction, regional rates and lease deed execution Chief Minister proposes 'lease rent model' to lower investors' costs Lease rent model to optimize use of limited industrial land Chief Minister directs formulation of cluster-based industrial development policy Lucknow, August 1 Uttar Pradesh is taking decisive steps to position its footwear, leather, and non-leather manufacturing sector on the global map. Chairing a a meeting of the MSME department on Friday, Chief Minister Yogi Adityanath highlighted the state's strong base—skilled artisans, raw materials, and industrial hubs like Agra, Kanpur, and Unnao—and called for a practical, results-driven policy to unlock its full potential. While reviewing the draft of the Uttar Pradesh Footwear, Leather and Non-Leather Sector Development Policy 2025, the Chief Minister instructed officials to adopt a cluster-based development model as a core strategy. He emphasized the importance of clearly identifying regions in the state best suited for industry-specific development. He further stated that integrating production, design, research, and training on a single platform could not only attract large-scale investments, but also generate employment opportunities for lakhs of youth. The Chief Minister stressed the need to develop key infrastructure like flatted factory complexes to offer modern, efficient workspaces for industrial units. Officials informed him that the proposed policy could generate around 22 lakh new jobs in the coming years—marking a potential turning point in Uttar Pradesh's rise as a global hub for footwear and leather manufacturing. Currently, India ranks as the second-largest producer and consumer in the world in this sector, with Uttar Pradesh playing a significant role. Over 200 operational tanneries are located in Kanpur and Unnao, while Agra is recognized as the 'Footwear Capital' of the country. The Chief Minister emphasized that the policy should not only promote leather and non-leather footwear manufacturing units, but also extend special incentives to ancillary units producing components like buckles, zips, soles, insoles, laces, dyes, chemicals, heels, threads, tags, and labels. He also stressed support for units manufacturing specialised machinery for leather stitching, cutting, moulding, and production of non-leather safety shoes. This integrated approach, he said, would help establish a complete and localized 'design-to-delivery' ecosystem within the state. Additionally, he highlighted the need for robust strategies for skilling, packaging, and marketing to enhance product quality and competitiveness. The meeting also included a discussion on the proposed Uttar Pradesh Industrial Asthan Policy. Officials noted several challenges in the current system, including inefficient land utilisation, lease execution complexities, unauthorised mortgaging and subletting, and idle plots. The new policy aims to eliminate these hurdles by introducing a transparent, streamlined, and time-bound system. Plot allotment will be conducted via e-auctions or other transparent methods, with land prices determined area-wise. However, land rates for anchor units will be set by the state government. Calling the proposed policy 'practical and forward-looking,' the Chief Minister stated. "A clear, simplified, and accountable process—from land allotment to lease execution, construction, and production—would provide confidence to investors and catalyze industrial growth." He also suggested the adoption of a 'lease rent model' to ensure optimal utilization of limited industrial land, minimize capital expenditure for investors, and accelerate development. To promote private industrial parks, the Chief Minister advocated for incentives such as capital subsidies, stamp duty exemptions, and electricity and logistics support, along with a single-window approval system. He directed officials to develop an integrated online portal for applications and disbursement of incentives to ensure a fully digital, seamless, and trackable policy implementation process.
