For the full year 2021, revenue was up 27% to reach $5.7 billion, which is a record.
Versus 2019, revenue is up 8%.
Wholesale revenue increased 36% to $3.2 billion in 2021.
On a two-year basis, wholesale is up 3%.
As detailed in previous calls, this performance has been tempered by the strategic decisions we've made to improve brand health by reducing our sales to the off-price channel and exiting approximately 2,500 undifferentiated retail doors in North America, an effort which is now concluded.
Our direct-to-consumer business was up 26% to $2.3 billion in 2021.
Versus 2019, direct-to-consumer is up 29%, with strong momentum in our owned and operated stores and our e-commerce business.
Following a 40% increase in 2020, our e-commerce business was up 4% in 2021, equating to 45% growth on a two-year stack.
2021 gross margin was up 210 basis points to a record 50.3%.
Versus 2019, gross margin is up 340 basis points, so excellent progress over two years, driven by benefits from pricing and a more favorable channel mix being offset by supply chain headwinds related to COVID-19 and the absence of MyFitnessPal, which we sold at the end of 2020.
Our full year operating income reached $486 million, net income was $360 million, and our diluted earnings per share was $0.77, all three of which are records.
We also realized strong balance sheet and cash flow performances with inventory down 9% to an absolute dollar value that is only slightly higher than in 2015 when we were a $4 billion business.
And finally, one more record having ended the year with $1.7 billion in cash.
There are too many to list, but a few standouts on the apparel side include RUSH, Iso-Chill, Rival Fleece, Crossback, Infinity, Unstoppable and Meridian, all names that delivered a 33% increase in revenue we achieved.
On the footwear side, franchises like HOVR Sonic, Machina and Infinite; UA Flow Velociti Wind; Charged Pursuit, Assert, Aurora; Curry; and Project Rock contributed nicely to 35% growth, validating one of our largest long-term growth opportunities.
As we lay the foundation for our Access to Sport initiative, we are excited to share more in the years ahead as we build opportunities for millions of youth to engage in sport by 2030, ensuring that the next generations of focused performers are inspired even more holistically than those before them.
That said, let's look at how our regions performed in 2021, starting with North America, where revenue was up 29% to $3.8 billion or up 4% since 2019.
Revenue in EMEA was up 41%, driven by nearly 50% growth in our wholesale business and continued momentum in direct-to-consumer.
Our two-year performance is strong as well, with revenue in EMEA up 36% versus 2019.
Next up is Asia Pacific, where revenue was up 32% in 2021, driven by nearly 50% growth in our wholesale business and a strong increase in direct-to-consumer sales.
Clearly, the story here is about a more challenging environment that has developed in China as of late as evidenced by a 6% decline in our fourth quarter APAC revenue.
Versus 2019, revenue in Asia Pacific was up 31%, so strong growth on a two-year basis.
And finally, revenue in our Latin America region in 2021 was up 18%, driven by strength in our full-price wholesale and distributor businesses.
Compared to the prior year, revenue was up 9% to $1.5 billion.
From a channel perspective, fourth quarter wholesale revenue was up 16%, driven by strong performance in our full-price business, partially offset by lower year-over-year sales to the off-price channel.
Our direct-to-consumer business increased 10%, led by 14% growth in our owned and operated retail stores and 4% growth in our e-commerce business.
In addition, our e-commerce business is up more than 30% on a two-year basis.
And licensing revenue was down 33%, driven primarily by the recognition timing of minimum royalty payments.
By product type, apparel revenue was up 18%, with strength in our training and outdoor businesses.
Footwear was up 17%, driven primarily by our running and training categories.
And our accessories business was down 27% due to planned lower sales of our SPORTSMASKs compared to last year's fourth quarter.
From a regional and segment perspective, fourth quarter revenue in North America was up 15% to $1.1 billion, driven by premium growth in our full-price wholesale and direct-to-consumer businesses.
Compared to 2019, North American revenue was up 8% in the fourth quarter, driven by higher quality revenue than two years ago.
In our international business, EMEA revenue was up 24%, driven primarily by strength in our wholesale business.
Compared to the fourth quarter of 2019, revenue in EMEA was up 11%.
Next up is APAC, where the business was down 6% in the quarter, driven by softer demand in our wholesale business, which more than offset DTC growth.
Compared to 2019, total APAC revenue was up 19%.
And finally, in line with expectations, Latin America revenue was down 22% due to the change in our business model as we moved certain countries to distributors, an effort which is now completed.
Versus the fourth quarter of 2019, Latin America was down 20%.
Related to gross margin, our fourth quarter improved 130 basis points to 50.7%.
This expansion was driven by 350 basis points of pricing improvements due primarily to lower promotional activity within our DTC business, favorable pricing related to sales to the off-price channel and lower promotions and markdowns across our wholesale business.
And 90 basis points of benefit related to lower restructuring charges.
These improvements were partially offset by 190 basis points of COVID-related supply chain impacts, driven by higher freight costs, which meaningfully offset product cost benefits during the quarter; 80 basis points related to the absence of MyFitnessPal; and 50 basis points of unfavorable product mix, related primarily to lower SPORTSMASK sales, which carry a higher gross margin.
SG&A expenses were up 15% to $676 million, primarily due to increased marketing investments, incentive compensation and nonsalaried workforce wages.
Related to our 2020 restructuring plan, we recorded $14 million of charges in the fourth quarter.
So we now expect to recognize total planned charges ranging from $525 million to $550 million.
Thus far, we've realized $514 million of pre-tax restructuring and related charges.
We expect to recognize any remaining charges related to this plan by the end of the first quarter of our fiscal year 2023.
Moving on, our fourth quarter operating income was $86 million.
Excluding restructuring and impairment charges, adjusted operating income was $100 million.
After tax, we realized a net income of $110 million or $0.23 of diluted earnings per share during the quarter.
Excluding restructuring charges, income related to our first year of the MyFitnessPal divestiture earnout and the noncash amortization of debt discount on our senior convertible notes, our adjusted net income was $67 million or $0.14 of adjusted diluted earnings per share.
From a balance sheet perspective, inventory was down 9% to $811 million, driven by continued improvements in our operating model and inbound shipping delays due to COVID-related supply chain pressures.
Our cash and cash equivalents were $1.7 billion at the end of the quarter, and we had no borrowings under our $1.1 billion revolving credit facility.
Finally, following last year's convertible bond exchanges, we are proud to share that our cash position less debt of $663 million nearly doubled to $1 billion by the end of the fourth quarter.
From a revenue perspective, we now expect our transition period to be up at a mid-single-digit rate compared to the previous expectation of a low single-digit rate increase.
This includes approximately 10 points of revenue headwinds related to reductions in our spring/summer 2022 wholesale order book from supply constraints associated with ongoing COVID-19 pandemic impacts.
At this time, we do expect these uncertainties to cause material impacts and variability in our future results.
We expect our transition quarter rate to be down approximately 200 basis points against our Q1 2021 adjusted gross margin, which includes approximately 240 basis points of negative impact from higher freight expenses related to ongoing COVID-19 supply chain challenges in addition to an unfavorable sales mix, partially offset by pricing benefits.
With that, we expect operating income to reach approximately $30 million to $35 million and diluted earnings per share to be approximately $0.02 to $0.03.

Summary:
Compared to the prior year, revenue was up 9% to $1.5 billion.
Related to gross margin, our fourth quarter improved 130 basis points to 50.7%.
Related to our 2020 restructuring plan, we recorded $14 million of charges in the fourth quarter.
So we now expect to recognize total planned charges ranging from $525 million to $550 million.
We expect to recognize any remaining charges related to this plan by the end of the first quarter of our fiscal year 2023.
After tax, we realized a net income of $110 million or $0.23 of diluted earnings per share during the quarter.
Excluding restructuring charges, income related to our first year of the MyFitnessPal divestiture earnout and the noncash amortization of debt discount on our senior convertible notes, our adjusted net income was $67 million or $0.14 of adjusted diluted earnings per share.
From a balance sheet perspective, inventory was down 9% to $811 million, driven by continued improvements in our operating model and inbound shipping delays due to COVID-related supply chain pressures.
From a revenue perspective, we now expect our transition period to be up at a mid-single-digit rate compared to the previous expectation of a low single-digit rate increase.
At this time, we do expect these uncertainties to cause material impacts and variability in our future results.
We expect our transition quarter rate to be down approximately 200 basis points against our Q1 2021 adjusted gross margin, which includes approximately 240 basis points of negative impact from higher freight expenses related to ongoing COVID-19 supply chain challenges in addition to an unfavorable sales mix, partially offset by pricing benefits.
With that, we expect operating income to reach approximately $30 million to $35 million and diluted earnings per share to be approximately $0.02 to $0.03.