Under Armour (UAA, UA) will report fiscal 2Q17 earnings on the first day of August. The announcement will be pivotal as I expect the company to provide further insight on the company’s expense landscape. Q2 costs could come in on the rich side, as ”timing shifts including headcount additions and demand creation expenses […] have moved into future quarters based on execution needs.”
First, the Street's expectations for the quarter suggest a revenue estimate of $1.08 billion, a YOY increase of 7.6% that would be about about 100 bps above the company's top-line growth from fiscal 1Q17. EPS consensus of -$0.07 (net loss) would be significantly lower than last year's $0.04 (net profit), reflecting the increase in demand creation expenses in the direct-to-consumer, international and footwear businesses, as well as expense shifts from Q1, including the hiring of new President Patrick Frisk.
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