Core Insights - Under Armour reported a revenue of $1.33 billion for Q3 of fiscal year 2026, representing a 5% year-over-year decline [1] - The gross margin decreased by 3.1 percentage points to 44.4% [1] - North American market revenue fell by 10% year-over-year, while international market revenue increased by 3%, indicating resilience in global operations [1] - The Asia-Pacific region, including China, generated $190 million in revenue during the quarter [1] - The company plans to enhance long-term growth potential through strategic focus and innovation investments [1]

Group 1 - The article emphasizes the importance of preparing for a rotation in market leadership away from certain industries in the choppy market of 2026 [1] - Gary Alexander has extensive experience in covering technology companies and advising startups, contributing to the understanding of current industry themes [1] Group 2 - The article does not provide any specific stock recommendations or investment advice [2][3]

Core Insights - Under Armour reported earnings per share of $0.09, exceeding the estimated loss of $0.015, and revenue of approximately $1.33 billion, surpassing the estimated $1.16 billion [1][5] Group 1: Financial Performance - The company's third-quarter revenue decline was smaller than anticipated due to successful turnaround efforts aimed at simplifying its product assortment [3] - Under Armour's adjusted operating results for the third quarter surpassed expectations, indicating positive progress [3] Group 2: Revenue Expectations - Despite positive earnings, Under Armour has adjusted its revenue expectations for fiscal 2026, anticipating a decline at the milder end of its forecast [2][5] - The company faces challenges such as weak demand in North American and Asia-Pacific markets and ongoing tariff pressures [2][5] Group 3: Valuation Metrics - The price-to-sales ratio is about 0.60, indicating investors pay 60 cents for every dollar of sales [4] - The enterprise value to sales ratio is approximately 0.90, reflecting the company's valuation relative to its revenue [4] - The debt-to-equity ratio is about 1.02, suggesting slightly more debt than equity, while the current ratio is approximately 1.69, indicating good liquidity to cover short-term liabilities [4]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Under Armour reported a revenue of $1.33 billion for Q3 of fiscal year 2026, reflecting a 5% year-over-year decline, with a gross margin decrease of 3.1 percentage points to 44.4% [1] Revenue Performance - North American market revenue declined by 10% year-over-year [1] - International market revenue increased by 3% year-over-year [1] - Revenue in the Asia-Pacific region, including China, reached $190 million for the quarter [1] Strategic Initiatives - Under Armour launched a winter training series and the UA NEXT COMBINE innovative fitness testing system in the Chinese market [1] - The company introduced two new professional running shoes: UA Velociti Elite3 and Velociti Distance [1] - Under Armour opened its first smart sports social space globally and partnered with the Chinese flag football national team to provide equipment and technical support [1] Future Outlook - The CEO expressed confidence in the company's ability to stabilize global business growth and acknowledged the positive results from the brand revitalization efforts [1] - The company aims to enhance long-term growth potential in the Chinese market through strategic focus and innovation investments [1]

Financial Data and Key Metrics Changes - Revenue declined 5% to $1.3 billion, slightly better than the outlook shared in November, with a timing shift of some wholesale deliveries contributing approximately 1 percentage point of growth [27] - Third quarter gross margin declined 310 basis points year-over-year to 44.4%, primarily due to supply chain headwinds and higher U.S. tariffs [30] - Reported diluted loss per share was $1.01, influenced by a non-cash valuation allowance against certain U.S. federal deferred tax assets [33] Business Line Data and Key Metrics Changes - Apparel revenue decreased 3%, largely due to softness in training, golf, and running categories, while sportswear remained flat [29] - Footwear revenue decreased 12%, reflecting declines across most categories, partially offset by growth in outdoor [29] - Accessories revenue decreased 3%, driven largely by declines in golf, outdoor, and team sports [29] Market Data and Key Metrics Changes - North America revenue declined 10%, primarily due to a decrease in wholesale [28] - EMEA revenue increased 6% on a reported basis and 2% on a currency-neutral basis, with growth in both wholesale and direct-to-consumer [28] - APAC revenue decreased 5% on both reported and currency-neutral bases, marking a sequential improvement from earlier declines [28] Company Strategy and Development Direction - The company is focused on execution and has made leadership changes to enhance speed and accountability [9][10] - A disciplined strategy is being implemented to simplify operations, reduce SKUs, and improve product mix and pricing [11][12] - The company aims to stabilize its footwear business by exiting low productivity styles and concentrating on fewer, higher-impact franchises [14][15] Management's Comments on Operating Environment and Future Outlook - Management believes the most disruptive phase of the reset is behind, with a focus on execution and stabilization [25] - There is growing confidence in the North American market, with expectations for stabilization in FY 2027 [45][49] - The company anticipates a decline in full-year revenue of approximately 4%, with expectations for improvement in fourth-quarter revenue trends [37] Other Important Information - The company recorded $75 million in restructuring charges and $3 million in transformation-related expenses during the third quarter [31] - Inventory was down 2% year-over-year to just over $1 billion, indicating improved inventory management [36] - The company is prioritizing balance sheet strength, ending the quarter with no amounts outstanding under its revolving credit facility [36] Q&A Session Questions and Answers Question: Can you speak to what makes you confident about stabilization in North America? - Management expressed confidence in the leadership team and the clarity of the operational model, indicating that they are addressing the right issues and seeing positive order book trends [45][46][49] Question: Are you seeing progress in Europe and APAC as well? - Management noted that EMEA has been a strong performer with 9% growth, while APAC is viewed as a critical long-term growth opportunity [61][64] Question: How are you thinking about segmentation in footwear? - The company is focusing on clear segmentation of good, better, and best products, aiming to concentrate growth at the better and best levels [68][70]

Financial Data and Key Metrics Changes - Revenue declined 5% to $1.3 billion, slightly better than the outlook shared in November, with a timing shift of some wholesale deliveries contributing approximately 1 percentage point of growth [27] - Third quarter gross margin declined 310 basis points year-over-year to 44.4%, primarily due to supply chain headwinds and higher U.S. tariffs [30] - Reported diluted loss per share was $1.01, influenced by a non-cash valuation allowance against certain U.S. federal deferred tax assets [33] Business Line Data and Key Metrics Changes - Apparel revenue decreased 3%, largely due to softness in training, golf, and running categories, while sportswear remained flat [29] - Footwear revenue decreased 12%, reflecting declines across most categories, partially offset by growth in outdoor [29] - Accessories revenue decreased 3%, driven largely by declines in golf, outdoor, and team sports [29] Market Data and Key Metrics Changes - North America revenue declined 10%, primarily due to a decrease in wholesale [27] - EMEA revenue increased 6% on a reported basis and 2% on a currency-neutral basis, with growth in both wholesale and direct-to-consumer [28] - APAC revenue decreased 5% on both reported and currency-neutral bases, marking a sequential improvement from earlier declines [28] Company Strategy and Development Direction - The company is focused on execution and has made real progress with a disciplined strategy and structure in place [5][6] - Leadership changes have been made to accelerate speed and improve product mix, pricing, and margin performance [9][10] - The strategy emphasizes intentional product segmentation and storytelling to enhance consumer engagement and brand relevance [18][19] Management's Comments on Operating Environment and Future Outlook - Management believes the most disruptive phase of the reset is behind them, with a focus on execution and stabilization [25][39] - There is growing confidence in the North American market, with expectations for stabilization in FY 2027 [45][49] - The company anticipates a decline in full-year revenue of approximately 4%, with expectations for improvement in fourth-quarter revenue trends [37] Other Important Information - The company recorded $75 million in restructuring charges and $3 million in transformation-related SG&A expenses during the third quarter [31] - Inventory was down 2% year-over-year to just over $1 billion, indicating improved inventory management [35] - The company is prioritizing balance sheet strength, ending the quarter with no amounts outstanding under its revolving credit facility [36] Q&A Session Questions and Answers Question: Can you speak to what makes you confident about stabilization in North America? - Management expressed confidence due to improved relationships with partners and a positive order book shaping up [45][49] Question: Are you seeing progress in Europe and APAC as well? - EMEA has shown strong growth, while APAC is expected to stabilize over the next 12 months [60][64] Question: How are you thinking about segmentation in footwear? - The company aims to concentrate growth at the better and best levels, focusing on clear segmentation and premiumization [68][70]

Financial Data and Key Metrics Changes - Revenue declined 5% to $1.3 billion, slightly better than the outlook shared in November, with a timing shift of some wholesale deliveries contributing approximately 1 percentage point of growth [27][28] - Gross margin declined 310 basis points year-over-year to 44.4%, primarily due to supply chain headwinds and higher U.S. tariffs [30][31] - Adjusted operating income was $26 million, exceeding expectations, while reported diluted loss per share was $1.01, influenced by non-cash valuation allowances and other charges [33][34] Business Line Data and Key Metrics Changes - Apparel revenue decreased 3%, driven by softness in training, golf, and running categories, while sportswear remained flat [30] - Footwear revenue decreased 12%, reflecting declines across most categories, although outdoor footwear showed some growth [30] - Accessories revenue decreased 3%, largely due to declines in golf, outdoor, and team sports [30] Market Data and Key Metrics Changes - North America revenue declined 10%, primarily due to a decrease in wholesale, while direct-to-consumer business saw a smaller decline [27][28] - EMEA revenue increased 6% on a reported basis, with growth in both wholesale and direct-to-consumer [28] - APAC revenue decreased 5%, marking a sequential improvement from earlier declines, driven mainly by the full-price wholesale business [28] Company Strategy and Development Direction - The company is focused on execution and simplifying its operating model, with a renewed go-to-market strategy and a clearly articulated business plan [4][6] - Leadership changes have been made to enhance speed and accountability, with key positions filled to support product mix and pricing strategies [8][9] - The strategy emphasizes intentional product segmentation and storytelling to strengthen brand identity and consumer engagement [18][19] Management's Comments on Operating Environment and Future Outlook - Management believes the most disruptive phase of the reset is behind, with a focus on execution and stabilization [26][41] - There is growing confidence in the North American market, with expectations for stabilization in FY 2027 [46][50] - The company anticipates a decline in full-year revenue of approximately 4%, with expectations for improved trends in the fourth quarter [38] Other Important Information - The company recorded $75 million in restructuring charges and $3 million in transformation-related expenses during the quarter [32] - Inventory was down 2% year-over-year to just over $1 billion, indicating improved inventory management [35] - The company is prioritizing balance sheet strength, ending the quarter with no outstanding amounts under its revolving credit facility [37] Q&A Session Summary Question: Can you speak to what makes you confident about stabilization in North America? - Management highlighted the internal talent and leadership changes that have contributed to improved relationships with partners and a more consistent order book [46][50] Question: Are you seeing progress in Europe and APAC as well? - EMEA has shown strong growth, while APAC is expected to stabilize over the next 12 months, with ongoing efforts to manage inventory and enhance the retail experience [62][65] Question: How are you thinking about segmentation in footwear? - The company is focusing on clear segmentation of products into good, better, and best categories, aiming to concentrate growth at the better and best levels [69][70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ Form 10-Q ______________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 or Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33202 __________________________ ...

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for being a forward-looking technology adopter, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]