Answer To: 1. The Sales Revenue of Under Armour for the years 2012, 2013 and 2014 is as under: Particulars 2012...
Sumit answered on Jan 22 2021
A. Manga
MGMT 488
21 January, 2021
Under Armour Financial Analysis
Sales Revenue:
Under Armour has shown progressive increases in sales revenue for the past three years, 2012, 2013, and 2014, with sales revenues of $1,835 (Million), $2,332 (Million), and $3,084 (Million), respectfully, as shown in the Table below. This was the period when the sales growth of the company was at the peak. The Year-on-Year sales for the company was increasing rapidly.
These increases year over year in sales revenue are attributable to two key areas: (1) Under Armor’s yearly revenue increases in Apparel, Footwear, License Revenues, and Connected Fitness, and (2) its yearly international revenue growth in foreign markets. In 2014, Apparel revenue was led by Under Armour’s train category, Footwear revenue was driven by the run category. Similarly, in 2013, Footwear revenue continued to increase as a result of the run category.
While Under Armour’s revenue is increasing in North America, its revenue also increased in its three other international segments: EMEA, Asia-Pacific, and Latin America. Armour’s revenues for these three regions increased for several reasons: (1) EMEA experienced unit sales growth in its wholesale channel, notably in the United Kingdom, Italy, and Spain; (2) Asia-Pacific experienced unit sales growth in its wholesale channel and direct-to-consumer channel, particularly in China; and (3) Latin America experienced unit sales growth in its wholesale channel, primarily in Mexico and Chile.
Earnings Per Share:
For 2012, 2013, and 2014, Under Armour’s Basic EPS were $0.32, $0.39, and $0.47, respectfully, which are shown in the Table below. EPS is based on net income less preferred dividends divided by shares of outstanding stock. Since the sales revenue of the company is increasing each year the EPS is also increasing each year. Sales revenue for the past three years, 2012, 2013, and 2014, with sales revenues of $1,835 (Million), $2,332 (Million), and $3,084 (Million), respectfully. The EPS has not increased in the same proportion as the revenue because the operating margins of the company is decreasing.
Return on Equity:
Like EPS, return on equity (ROE) is based on net income. ROE is calculated by dividing net income by the average total stockholders’ equity. So, for 2012, 2013, and 2014, Under Armour’s ROE was 17.56%, 17.44%, and 17.22%, respectfully as shown in the Table below. Under Armour has shown progressive increases in sales revenue for the past three years, 2012, 2013, and 2014, with sales revenues of $1,835 (Million), $2,332 (Million), and $3,084 (Million), respectfully, as shown in Table 1. For 2012, 2013, and 2014, Under Armour’s Basic EPS were $0.32, $0.39, and $0.47, respectfully, which are shown in the Table below. This was the period when the sales growth of the company was at the peak. The Year-on-Year sales for the company was increasing rapidly. Since the...