Under Armour experienced a dramatic financial reversal, swinging from $232M profit to a $201M loss while burning through $357M in cash and operations.
This represents a complete deterioration in Under Armour's financial performance, with the company moving from profitable operations to significant losses while consuming rather than generating cash. The magnitude of these changes suggests fundamental operational challenges that extend beyond normal business volatility and warrant immediate investor attention.
Under Armour's financial position deteriorated severely across all key metrics, with the company swinging from $232M in net income to a $201M loss and operating cash flow turning deeply negative from $354M positive to -$59M. Despite the poor performance, management continued aggressive share buybacks at $90M (up 20% from prior year) while cash reserves declined 42% to $501M, suggesting potential concerns about capital allocation discipline during a period of financial distress. The combination of major losses, negative cash generation, and continued shareholder distributions creates a concerning financial picture that signals operational challenges and potential liquidity pressures.
Net income declined 186.7% — review whether driven by operations, interest costs, or non-recurring items.
Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.
Operating cash flow fell 116.8% — earnings quality concerns; investigate working capital changes and non-cash items.
Cash declined 41.6% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.
Share repurchases increased 20% — management returning capital, signals confidence in intrinsic value.
Current assets declined 18.7% — monitor working capital adequacy and short-term liquidity.
Equity decreased 12.2% — buybacks or losses reducing book value, monitor solvency ratios.
Debt reduced 11.9% — deleveraging strengthens balance sheet and reduces financial risk.
Receivables declined — improved collection efficiency or conservative revenue recognition.
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