Revenue Performance - Revenue for Q3 Fiscal 2025 decreased by 6% to $1.4 billion, with North America revenue down 8% to $844 million and international revenue down 1% to $558 million[3]. - Net revenues for the three months ended December 31, 2024, were $1,401,039, a decrease of 5.7% compared to $1,486,043 in the same period of 2023[20]. - North America segment revenues decreased by 7.8% to $843,620 for the three months ended December 31, 2024, from $915,335 in 2023[20]. - Under Armour's total net revenue growth for the nine months ended December 31, 2024, was a decline of 8.8% according to GAAP, with a currency-neutral net revenue growth of -8.7%[33]. Profitability Metrics - Gross margin increased by 240 basis points to 47.5%, attributed to reduced direct-to-consumer discounting and lower product and freight costs[3]. - Operating income was reported at $14 million, with adjusted operating income at $60 million after excluding certain charges[3]. - Net income for the quarter was $1 million, while adjusted net income stood at $35 million[3]. - Gross profit for the three months ended December 31, 2024, was $665,155, representing a gross margin of 47.5%, compared to $670,639 and 45.1% in 2023[20]. - The company reported a net income of $1,234 for the three months ended December 31, 2024, compared to a net income of $110,753 in 2023[20]. - For the nine months ended December 31, 2024, Under Armour reported a net loss of $133.81 million compared to a net income of $225.47 million for the same period in 2023[30]. - The adjusted diluted earnings per share for the nine months ended December 31, 2024, was $0.39, while the GAAP diluted net loss per share was $(0.31)[43]. Expenses and Charges - Selling, general, and administrative expenses rose by 6% to $638 million, primarily due to increased marketing investments[3]. - Selling, general and administrative expenses increased to $637,701, accounting for 45.5% of net revenues, up from 40.3% in the prior year[20]. - The company recognized $42 million in restructuring and impairment charges, with total incurred charges thus far amounting to $57 million[5]. - The company experienced a significant increase in restructuring charges, totaling $13,945 for the three months ended December 31, 2024[20]. Cash Flow and Assets - Cash and cash equivalents decreased to $726,877 as of December 31, 2024, from $858,691 as of March 31, 2024[28]. - The company's cash flows from operating activities for the nine months ended December 31, 2024, were $142.88 million, a decrease from $476.86 million in the prior year[30]. - Under Armour's cash, cash equivalents, and restricted cash decreased from $1.06 billion at the end of December 2023 to $745.17 million at the end of December 2024[30]. - Total assets decreased to $4,630,965 as of December 31, 2024, down from $4,760,734 as of March 31, 2024[28]. - The company reported a significant increase in accounts receivable, totaling $136.66 million for the nine months ended December 31, 2024, compared to $58.04 million in the previous year[30]. Future Outlook - The updated fiscal 2025 outlook anticipates a revenue decline of approximately 10%, with a gross margin increase of about 160 basis points expected[7]. - Operating loss is projected to be between $179 million and $189 million, with adjusted operating income expected to be between $185 million and $195 million[7]. - Capital expenditures are forecasted to be between $170 million and $180 million, a decrease from previous estimates[12]. - The company plans for a GAAP loss from operations in the fiscal year ending March 31, 2025, to be between $179 million and $189 million, with adjusted income from operations estimated between $185 million and $195 million[47]. Share Repurchase - Under Armour repurchased $25 million of its Class C common stock, retiring 2.8 million shares during Q3[4]. - The company repurchased $65 million in common shares during the nine months ended December 31, 2024, compared to $75 million in the same period of the previous year[30]. Store Operations - Under Armour's total company-owned and operated doors decreased from 440 in December 2023 to 448 in December 2024, with North America total doors decreasing from 200 to 196[50].

Earnings Release and Conference Call - Under Armour Inc plans to release its third-quarter fiscal 2025 results for the period ended December 31 2024 on February 6 2025 [1] - The company will hold a conference call at approximately 8:30 am ET on February 6 2025 to discuss the results following the news release at around 6:55 am ET [1] - The conference call will be webcast live and archived on the company's investor relations website [1] Company Overview - Under Armour Inc is headquartered in Baltimore Maryland [2] - The company is a leading inventor marketer and distributor of branded athletic performance apparel footwear and accessories [2] - Under Armour's products and experiences are designed to empower human performance and make athletes better [2]

Group 1 - Under Armour, Inc. reported Q2 2025 results that exceeded both their guidance and market expectations despite poor year-over-year topline and bottom-line results [1] - The market reacted positively to the earnings beat and the optimistic tone of the report [1] Group 2 - The investment approach focuses on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - The strategy emphasizes holding companies for the long term, with a preference for a small fraction of companies being considered for buy recommendations [1]

Revenue Performance - Total net revenues decreased by 10.7% for the three months ended September 30, 2024, compared to the same period in 2023[124] - Wholesale revenue decreased by 12.1%, while direct-to-consumer revenue decreased by 7.6% during the same period[124] - Net revenues decreased by $167.7 million, or 10.7%, to $1,399.0 million for the three months ended September 30, 2024, compared to $1,566.7 million for the same period in 2023[134] - Total net revenues for the six months ended September 30, 2024, decreased by $300.9 million, or 10.4%, to $2,582.7 million compared to $2,883.6 million in 2023[134] - Net revenues in North America decreased by $128.0 million, or 12.9%, driven by declines in both wholesale and direct-to-consumer channels[154] - Net revenues in the Asia-Pacific region decreased by $24.4 million, or 10.5%, primarily due to decreases in both direct-to-consumer and wholesale channels[154] - North America net revenues fell by $245.4 million, or 13.5%, to $1.57 billion, impacted by declines in both wholesale and direct-to-consumer channels[158] - EMEA net revenues decreased by $3.7 million, or 0.7%, to $510.1 million, with a decline in wholesale offset by growth in direct-to-consumer[158] - Asia-Pacific net revenues dropped by $44.8 million, or 10.3%, to $389.5 million, affected by lower revenues in both direct-to-consumer and wholesale channels[158] Sales Breakdown - Apparel revenue decreased by 11.5%, footwear revenue decreased by 10.9%, and accessories revenue increased by 2.1%[124] - Apparel sales decreased by $123.2 million, or 11.5%, to $947.2 million during the three months ended September 30, 2024[134] - Footwear sales decreased by $38.4 million, or 10.9%, to $312.8 million during the three months ended September 30, 2024[134] - Direct-to-consumer sales decreased by $45.5 million, or 7.6%, during the three months ended September 30, 2024[135] - License revenues decreased by $3.9 million, or 13.4%, to $24.8 million during the three months ended September 30, 2024, compared to $28.6 million in 2023[137] Profitability and Margins - Gross margin increased by 200 basis points to 49.8%[124] - Gross profit decreased by $52.4 million to $696.1 million during the three months ended September 30, 2024, with a gross margin increase to 49.8% from 47.8%[138] - Net income for the three months ended September 30, 2024, was $170.4 million, compared to $104.7 million in the same period in 2023[132] - Net income increased to 12.2% of net revenues for the three months ended September 30, 2024, compared to 6.7% in the same period of 2023[133] - Total operating income increased by $33.6 million, or 24.1%, to $173.1 million for the three months ended September 30, 2024, compared to the same period in 2023[155] Expenses and Cost Management - Selling, general and administrative expenses decreased by 14.6%[124] - Selling, general and administrative expenses as a percentage of net revenues decreased to 37.2% for the three months ended September 30, 2024, from 38.9% in the same period of 2023[133] - Marketing costs decreased by $29.2 million or 18.8%, as a percentage of net revenues, marketing costs decreased to 9.0% from 9.9%[141] - Other costs decreased by $60.1 million or 13.2%, primarily due to higher recovery of insurance proceeds and lower salaries expense[141] - Restructuring charges increased by $3.2 million during the three months ended September 30, 2024, primarily due to $1.4 million of employee-related charges[143] Restructuring and Future Plans - The 2025 restructuring plan was approved with an estimated cost of $140 million to $160 million, including up to $75 million in cash-related charges[125] - Total costs recorded in restructuring charges for the three months ended September 30, 2024, amounted to $3.2 million[126] - The company is focused on long-term growth through increased sales in apparel, footwear, and accessories, as well as expansion in direct-to-consumer channels[122] - The company expects trends in gross margin improvements to continue through the remainder of Fiscal 2025, albeit to a lesser extent[138] Cash Flow and Financing - Cash flows from operating activities decreased by $223.9 million, primarily due to a decrease in net income before non-cash items of $292.2 million[167] - Cash flows used in financing activities increased by $78.9 million compared to the previous year, including $40 million for share repurchases[169] - The company repaid $80.9 million of Convertible Senior Notes using cash on hand during the six months ended September 30, 2024[169] - As of September 30, 2024, the company had approximately $530.7 million in cash and cash equivalents, with plans for a $500 million share repurchase program authorized by the Board of Directors[162] - The Board of Directors authorized a share repurchase program of up to $500 million for Class C Common Stock, effective until May 31, 2027[165] Debt and Capital Expenditures - Total capital expenditures for the six months ended September 30, 2024, were $91.5 million, representing approximately 4% of net revenues, an increase of $16.1 million from the previous year[168] - The company incurred $64.9 million in capital expenditures related to the construction of its new global headquarters during the six months ended September 30, 2024[168] - The company’s 3.25% Senior Notes have an aggregate principal amount of $600 million, due June 15, 2026, with interest payable semi-annually[174] - The amended credit agreement requires a consolidated EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.0, and the company was in compliance as of September 30, 2024[172] - As of September 30, 2024, the company had no amounts outstanding under its $1.1 billion revolving credit facility[170]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [2][3] - Proactive focuses on various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - The company utilizes technology to enhance workflows and has a team with decades of expertise [3] - Proactive employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [4]

Revenue Performance - Revenue for Q2 fiscal 2025 decreased by 11% to $1.4 billion, with North America down 13% to $863 million and international revenue down 6% to $538 million[4] - For the three months ended September 30, 2024, Under Armour reported net revenues of $1,399,023, a decrease of 10.7% compared to $1,566,674 in the same period of 2023[14] - Under Armour's total net revenues for the six months ended September 30, 2024, were $2,582,688, down 10.4% from $2,883,639 in the same period last year[14] - The company's total net revenue growth for the six months ended September 30, 2024, was a decline of 10.4% on a GAAP basis, with currency-neutral net revenue growth also declining by 10.1%[21] Profitability Metrics - Net income for the quarter was $170 million, while adjusted net income was $131 million[4] - Under Armour's net income for the three months ended September 30, 2024, was $170,382, or $0.39 per diluted share, compared to a net income of $104,711, or $0.23 per diluted share, in the prior year[13] - For the six months ended September 30, 2024, Under Armour reported a net loss of $135,044, compared to a net income of $114,721 for the same period in 2023[19] - Adjusted net income for the six months ended September 30, 2024, was $134,770, compared to a loss of $135,044 on a GAAP basis[25] Cost Management - Gross margin increased by 200 basis points to 49.8%, driven by lower product and freight costs and reduced discounting levels[4] - Selling, general, and administrative expenses decreased by 15% to $520 million, with adjusted expenses down 13% to $530 million[4] - Gross profit for the three months ended September 30, 2024, was $696,132, representing a gross margin of 49.8%, up from 47.8% in the prior year[13] - The company incurred selling, general, and administrative expenses of $519,840, which accounted for 37.2% of net revenues, compared to 38.9% in the same period last year[13] Future Outlook - The company expects a low double-digit percentage decline in revenue for fiscal 2025, including a 14-16% decline in North America[7] - Gross margin is projected to increase by 125 to 150 basis points, up from a previous expectation of 75 to 100 basis points[7] - Operating loss is anticipated to be between $176 million and $196 million, an improvement from prior expectations of $220 million to $240 million[7] - Under Armour's outlook for the year ending March 31, 2025, includes an estimated adjusted income from operations ranging from $165 million to $185 million[28] Restructuring Efforts - The restructuring plan's total charges are expected to range from $140 million to $160 million, with $28 million recognized in restructuring and impairment charges to date[6] - The company plans to incur restructuring charges under its 2025 restructuring plan, estimated between $140 million and $160 million[29] - The estimated impact of charges under the 2025 restructuring plan is $33 million for the quarter ending December 31, 2024[31] - The company continues to focus on restructuring efforts to improve operational efficiency and financial performance[31] Asset and Liability Management - As of September 30, 2024, Under Armour's total assets decreased to $4,494,593, down from $4,760,734 as of March 31, 2024, representing a decline of approximately 5.6%[18] - Under Armour's total liabilities decreased to $2,509,392 as of September 30, 2024, from $2,607,448 as of March 31, 2024, a decrease of approximately 3.8%[18] - Under Armour's cash and cash equivalents decreased to $530,701 as of September 30, 2024, from $858,691 as of March 31, 2024, a decrease of approximately 38%[18] - The company experienced a significant increase in inventories, which rose to $1,105,884 as of September 30, 2024, compared to $958,495 as of March 31, 2024, an increase of about 15.4%[18] Shareholder Metrics - Diluted earnings per share was $0.39, with adjusted diluted earnings per share at $0.30[5] - For the three months ended September 30, 2024, the GAAP diluted net income per share was $0.39, while the adjusted diluted net income per share was $0.30[26] - The GAAP diluted net income per share is projected to be between $(0.07) and $(0.05) for the quarter ending December 31, 2024[32] - The adjusted diluted net income per share is projected to be between $0.02 and $0.04 for the same quarter[32] Operational Metrics - North America segment revenues decreased by 12.9% to $863,345 for the three months ended September 30, 2024, from $991,357 in 2023[14] - The EMEA region saw a slight decline of 1.4% in revenues, totaling $283,178 for the three months ended September 30, 2024, compared to $287,091 in the same period last year[14] - Direct-to-consumer sales decreased by 7.6% to $550,336 for the three months ended September 30, 2024, from $595,811 in the prior year[15] - Apparel sales decreased by 11.5% to $947,188 for the three months ended September 30, 2024, compared to $1,070,401 in the same period of 2023[16] Store Operations - As of September 30, 2024, Under Armour operates 196 total doors in North America, a slight decrease from 197 doors in 2023[33] - The total international doors decreased from 253 in 2023 to 250 in 2024[33] - The total number of doors operated by Under Armour is 446, down from 450 in the previous year[33] - The company has seen a decrease in the number of Brand House locations in North America from 19 in 2023 to 16 in 2024[33]

Core Viewpoint - Under Armour's stock has shown volatility, with significant movements following news releases, particularly related to the return of founder Kevin Plank and the company's financial updates [1][2]. Group 1: Leadership and Strategy - The return of Kevin Plank as founder is seen as a pivotal moment for Under Armour, potentially driving innovation and a clearer vision for the company [2]. - Historical data suggests that companies led by founders tend to perform better in terms of innovation and financial results, with founder CEOs showing 3.1 times better performance over a 15-year period [2]. Group 2: Financial Performance and Market Reaction - Under Armour announced higher FY25 restructuring charges of $140 to $160 million, which negatively impacted stock performance despite only a slight increase in operating loss expectations to $220 to $240 million [3]. - The adjusted EPS target was updated to $0.19 to $0.22, aligning with original estimates, indicating that the company is meeting prior expectations despite the restructuring news [3]. Group 3: Market Position and Valuation - Under Armour's stock trades at a significant discount compared to competitors like Lululemon and Nike, suggesting potential upside if the brand can regain its strength [4][6]. - The company has improved its gross margin to 47.5% by shifting towards premium pricing, which could enhance its valuation multiple [5]. Group 4: Future Outlook - The hiring of Eric Liedtke is expected to boost brand value, leveraging his experience in brand strategy and sustainable products [3]. - Investors are encouraged to view any stock weakness as a buying opportunity, with the potential for a turnaround under Plank's leadership to yield substantial returns [7].

You have to spend money to save money.Shares of Under Armour (UA -10.79%) slumped 9.6% on Tuesday as of 12:17 p.m. ET.The athletic apparel and shoe company has had a tough few years, as growth stalled out and profits have taken a hit, with operating profits swinging to losses in 2024 for the first time since the pandemic.But Under Armour would have actually been profitable this past quarter if not for large transformation and restructuring expenses taken, as CEO Kevin Plank attempts to reposition the busine ...

Core Viewpoint - Under Armour is undergoing a strategic repositioning to restore its premium brand status, which has led to a decline in sales volume and expected losses in the short term, but improvements in gross margins are noted [1][3][4]. Financial Performance - Under Armour's stock has decreased by 6% year-to-date, currently trading at around $8, while peer Nike has seen a 24% decline [1]. - The company's revenue for Q1 was down 10% year-over-year to $1.2 billion, with North American sales dropping 14% and Asia Pacific sales down 10% [1]. - Gross margins have decreased from approximately 50% post-COVID to 47.5% in Q1 2025, although this represents a year-over-year increase of 110 basis points [1]. - For fiscal year 2025, revenue is forecasted to decline by 10% year-over-year, with a projected revenue of $5.1 billion [2][3]. Market Comparison - Under Armour's stock has underperformed the S&P 500 over the past three years, with returns of 21% in 2021, -51% in 2022, and -6% in 2023, compared to the S&P's respective returns of 27%, -19%, and 24% [2]. - The company's stock price is currently valued at $8 per share based on a revenue per share forecast of $11.33 and a 0.7x price-to-sales multiple for fiscal year 2025 [2]. Strategic Initiatives - The company is focusing on reducing inventory, which has decreased by 15% to $1.1 billion, and cutting back on online discounts to improve profitability [1]. - Under Armour expects to incur an operating loss of $194 million to $214 million for the full year due to higher expenses and restructuring charges related to its repositioning plan [3]. Consumer Behavior - There is a challenge in regaining premium brand status as consumers have become accustomed to lower prices, which may hinder the company's long-term profitability goals [4].

Revenue Performance - Total net revenues decreased by 10.1% for the three months ended June 30, 2024, compared to the same period in 2023[127]. - Wholesale revenue decreased by 8.3%, while direct-to-consumer revenue decreased by 11.8% during the same period[127]. - Total net revenues decreased by $133.3 million, or 10.1%, to $1,183.7 million for the three months ended June 30, 2024, compared to $1,316.9 million for the same period in 2023[138]. - Net sales decreased by $125.4 million, or 9.8%, to $1,160.7 million, primarily due to lower unit sales across all product categories[140]. - License revenues decreased by $3.4 million, or 13.6%, to $21.7 million, mainly due to lower revenues from licensing partners in North America and Japan[141]. - North America segment revenues decreased by $117.3 million, or 14.2%, to $709.3 million, while Latin America segment revenues increased by $8.7 million, or 15.6%[155]. - Total net revenues for the three months ended June 30, 2024, decreased by $117.3 million, or 14.2%, in North America, driven by declines in both wholesale and direct-to-consumer channels[156]. - EMEA region net revenues increased slightly by $0.3 million, or 0.1%, to $226.9 million, with growth in the direct-to-consumer channel[156]. - Asia-Pacific region net revenues decreased by $20.4 million, or 10.1%, to $181.8 million, impacted by lower revenues in both direct-to-consumer and wholesale channels[156]. - Latin America region net revenues increased by $8.7 million, or 15.6%, to $64.4 million, driven by growth in both wholesale and direct-to-consumer channels[156]. Profitability and Expenses - Gross margin increased by 110 basis points to 47.5%[127]. - Selling, general and administrative expenses increased by 42.1%, primarily due to a $274 million increase in litigation expenses related to a class action settlement[127]. - Selling, general and administrative expenses increased by $248.2 million, or 42.1%, to $837.3 million, driven by higher litigation reserves and transformational charges[145]. - Net income loss for the three months ended June 30, 2024, was $305.4 million, compared to a profit in the same period last year[135]. - Total operating loss for the three months ended June 30, 2024, was $299.7 million, a significant decline of 1,436.7% compared to an operating income of $22.4 million in the same period last year[157]. Restructuring and Charges - The company expects to incur total estimated pre-tax restructuring charges of approximately $70 million to $90 million during Fiscal 2025[129]. - Total costs recorded in restructuring charges for the three months ended June 30, 2024, amounted to $25.1 million[130]. - Restructuring charges amounted to $25.1 million, primarily due to employee-related charges and non-cash impairment charges[146]. Cash Flow and Capital Management - Cash flows from operating activities increased by $159.0 million, primarily due to a $467.0 million increase in working capital[169]. - Capital expenditures for the three months ended June 30, 2024, were $45.7 million, representing approximately 4% of net revenues, an increase of $13.1 million from the previous year[170]. - The company authorized a share repurchase program of up to $500 million through May 2027, with $40.0 million repurchased during the three months ended June 30, 2024[166]. - As of June 30, 2024, the company had approximately $884.6 million in cash and cash equivalents, sufficient to meet liquidity needs for at least the next twelve months[162]. Debt and Credit Facilities - The amended credit agreement provides for an aggregate $1.1 billion of revolving credit commitments, with a $50 million tranche maturing on December 3, 2026, and a $1.05 billion tranche maturing on December 3, 2027[172]. - As of June 30, 2024, there were no amounts outstanding under the revolving credit facility, and $4.2 million of letters of credit were outstanding[172]. - The company repaid $80.9 million of 1.50% convertible senior notes upon maturity, along with $0.6 million of accrued interest, using cash on hand[174]. - The company issued $600.0 million of 3.250% senior unsecured notes due June 15, 2026, with interest payable semi-annually[175]. - The amended credit agreement implemented SOFR as the benchmark interest rate for U.S. dollar borrowings, with applicable margins ranging from 1.00% to 1.75%[172]. - The company entered into an amendment to the credit agreement in July 2024 to exclude certain charges related to the settlement of Class Action Securities litigation from the definition of consolidated EBITDA[172]. - The company is required to maintain a consolidated EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.0 and a consolidated total indebtedness to consolidated EBITDA ratio not greater than 3.25 to 1.0[172]. Market and Economic Factors - The company continues to monitor macroeconomic factors, including inflation and foreign currency fluctuations, that may impact financial results[133]. - The company has no significant changes to its market risk since March 31, 2024[177]. Accounting and Reporting - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that may significantly differ from actual results[176].