Group 1 - Jim Cramer discussed Under Armour, Inc. (NYSE:UA) in the context of potential earnings reporting changes and the impact on long-term business planning [2] - Cramer indicated that Under Armour's turnaround is not expected to happen in the current quarter, highlighting the focus on short-term performance by investors and analysts [2][3] - Cramer expressed support for Under Armour's CEO Kevin Plank but noted the intense competition in the industry from major players like Nike and New Balance, which poses challenges for the company [3] Group 2 - The article suggests that while Under Armour has potential, there are other investment opportunities, particularly in AI stocks, that may offer higher returns with lower risk [3]

Group 1 - Adidas has signed NBA star Anthony Edwards for his first promotional tour in China, following previous visits by other NBA players, indicating a strong push in marketing and brand engagement in the Chinese market [2] - The influx of NBA stars to China is part of a broader strategy by sports brands like Adidas, Li Ning, and Under Armour to leverage celebrity endorsements for new product launches and to connect with local fans [2] - Despite claims that the sneaker market is declining, major sports brands continue to invest heavily in basketball, suggesting confidence in the long-term viability of this segment [2][4] Group 2 - Adidas has recently signed a lifetime contract with NBA star Damian Lillard, highlighting the brand's commitment to basketball and its strategy to secure long-term partnerships with key athletes [4] - The basketball business for Adidas saw significant success in the 1980s and 1990s, but the brand is now focused on identifying new star players to maintain its market presence [4] - Under Armour has successfully built its basketball brand around Stephen Curry, demonstrating the potential for growth through strategic athlete partnerships [4] Group 3 - The sneaker market has experienced a cooling trend, with only 47% of sneakers on the StockX platform expected to sell above retail price in 2024, down from 58% in 2020, indicating a shift in consumer behavior [8] - The rise of marathon running has led to increased competition from new brands like ON and HOKA, prompting traditional brands to diversify their offerings towards running shoes [9] - Despite the market cooling, basketball shoes remain a crucial segment for sports brands, with companies like Li Ning emphasizing the importance of basketball in their overall strategy [9][11] Group 4 - High-end basketball shoes are viewed as a premium segment within the sneaker market, representing the pinnacle of technology and trendsetting in athletic footwear [11] - The era of extreme sneaker speculation may be over, leading to more rational pricing and increased accessibility for consumers, provided that brands continue to innovate and offer attractive products [11]

Core Insights - Under Armour's 2025 CURRY brand Asia tour, themed "Opening a Big Scene," successfully attracted over 10,000 fans and consumers during the event held in Chongqing [1] Group 1: Event Highlights - The CURRY CON sports gathering, a brand-first initiative, was a significant highlight of the Asia tour [1] - The event featured a strong participation from basketball fans and consumers, indicating a successful engagement strategy [1] Group 2: Social Responsibility Initiatives - During the Asia tour, the CURRY brand partnered with the Yao Foundation to launch the "Basketball Without Borders" charity program [1] - This initiative aims to provide facilities and equipment support to rural areas and organize girls' basketball leagues in rural primary schools, promoting equal opportunities for girls in basketball [1] - The project includes building facilities, donating equipment, and providing scientific training to help break down participation barriers and promote healthy growth among youth [1]

Core Viewpoint - The U.S. consumer spending is weak due to trade policy uncertainties and macroeconomic conditions, significantly impacting the performance of North American footwear and apparel brands [1][2]. Group 1: Company Performance - Under Armour reported a 4% year-over-year decline in revenue for Q1 of fiscal year 2026, totaling $1.1 billion, with a projected 6% decline for Q2 [1]. - Crocs, known for its "Croc" shoes, reported a net loss of approximately $428 million for Q2, with North American revenue down 6.5% year-over-year, and expects a further decline of 9% to 11% in Q3 [1]. Group 2: Impact of Tariffs - The U.S. tariffs on imports from countries like Vietnam and Indonesia have raised costs for major brands such as Nike, which estimates an additional $1 billion in costs due to tariffs [2]. - Gap anticipates an increase in costs between $250 million to $300 million due to the tariffs [2]. - Retailers may need to raise prices by 10% to 12% to offset these costs, which will ultimately affect U.S. consumers, particularly those with lower incomes [2]. Group 3: Consumer Behavior and Market Dynamics - U.S. consumers are cautious with non-essential spending, leading to decreased foot traffic in stores and a preference for cheaper alternatives [3]. - The footwear and apparel industry faces a dilemma: raise prices to maintain profit margins or absorb costs, which would severely impact profitability [3]. - A letter signed by 76 footwear brands, including Nike and Adidas, was sent to the White House, indicating that tariffs pose a "survival threat" to the industry [3].

Group 1 - The article reflects on a visit to a sporting goods store in Europe, highlighting the presence of a prominent Under Armour logo, suggesting a nostalgic connection to the brand [1] - The author emphasizes a belief in the efficiency of financial markets, indicating that most stocks generally reflect their true current value [1] - The best investment opportunities are identified as those in stocks that are less followed by average investors or those that do not accurately represent existing market opportunities [1]

Core Viewpoint - Under Armour Inc (UAA) has potential for a long-term turnaround but faces near-term margin pressure due to tariffs and wholesale uncertainty [1] Group 1: Analyst Ratings and Price Target - Analyst Lorraine Hutchinson from BofA Securities reiterated a Neutral rating and reduced the price target from $8 to $6.50 [1] - The company is expected to generate weaker sales and lower margins through fiscal years 2026 and 2027 primarily due to tariffs [1] Group 2: Financial Performance and Guidance - Under Armour reported adjusted earnings in line with expectations for the first quarter, with softer sales offset by cost control [2] - Management guided for second-quarter sales and margins to fall short of market expectations, anticipating a 6%-7% decline in sales and a gross margin contraction of 340-360 basis points [2] Group 3: Market Behavior and Stock Performance - Management noted that both consumers and wholesale partners have shown hesitance in purchasing behavior, with the second quarter expected to be the weakest sales growth quarter of the year [3] - At the time of publication, shares of Under Armour had declined by 4.50% to $5.20 [3]

Group 1 - Jian Sheng Group reported H1 2025 revenue, net profit attributable to shareholders, net profit excluding non-recurring items, and operating cash flow of 1.17 billion, 142 million, 136 million, and 252 million yuan respectively, with year-on-year growth of 0.19%, -14.46%, -15.84%, and 146.96% [1] - The decline in net profit is attributed to fluctuating tariffs, a weak market, and overstaffing, compounded by increased management expenses due to new executive hires [1] - In Q2 2025, revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 610 million, 82 million, and 75 million yuan respectively, with year-on-year declines of 1.52%, 2.23%, and 8.39% [1] Group 2 - Under Armour reported FY2026 Q1 revenue, operating profit, and net loss of 113.4 million, 3 million, and -3 million USD respectively, with year-on-year changes of -4.2%, a turnaround to profit, and a 99.1% increase in losses [2] - By product category, revenue from apparel, footwear, and accessories was 74.7 million, 26.6 million, and 10 million USD respectively, with year-on-year changes of -1.5%, 14.3%, and 8.1% [2] - The company expects FY2026 Q2 revenue to decline by 6% to 7%, considering ongoing uncertainties in trade policies and macroeconomic conditions [2] Group 3 - Huali Group reported H1 2025 revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 12.661 billion, 1.664 billion, and 1.677 billion yuan respectively, with year-on-year changes of 10.36%, -11.42%, and -9.12% [3] - In Q2 2025, revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 7.308 billion, 902 million, and 926 million yuan respectively, with year-on-year changes of 9.0%, -17.3%, and -13.3% [3] - The company is adjusting its customer structure and resource allocation to ensure timely delivery of orders amid macroeconomic pressures and rising costs due to trade disputes [3] Group 4 - The textile and apparel industry is experiencing weak brand consumption, with home textiles performing slightly better than clothing due to online sales and subsidies [4] - Manufacturing orders were poor from April to May, and Q3 is expected to remain pessimistic, prompting recommendations for companies with strong profit certainty and growth recovery logic [4] - Online sales data from Taobao and Tmall in July 2025 showed improvements in the growth rate of sports and leisure apparel, with notable increases in specific categories [4] Group 5 - As of August 7, the China Cotton 3128B Index was 15,191 yuan/ton, with a 0.25% increase, while the medium import cotton price index was 13,420 yuan/ton, also up by 0.25% [6] - The domestic cotton price is higher than the foreign cotton price by 1,771 yuan/ton, with the China Cotton 3128B Index up 3.27% year-to-date [6]

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 news team delivers insights across various sectors including 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 its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Financial Data and Key Metrics Changes - First quarter revenue declined 4% to $1.1 billion, with regional results showing a 5% decline in North America, a 10% increase in EMEA, a 10% decline in APAC, and a 15% decline in Latin America [40][41] - Gross margin increased by 70 basis points year over year to 48.2%, driven by favorable foreign currency impacts and pricing benefits [43] - SG&A expenses decreased by 37% to $530 million, reflecting lower marketing and savings from restructuring efforts [44] Business Line Data and Key Metrics Changes - Apparel revenue declined 1%, footwear revenue decreased by 14%, while accessories grew by 8% [41][43] - The company is focusing on reducing SKUs by 25% and cutting materials by 30% for 2025 products to streamline operations and improve pricing [10][11] Market Data and Key Metrics Changes - North America is expected to see a low double-digit revenue decline, while EMEA is projected to deliver high single-digit growth [50] - APAC revenue is anticipated to decline at a low teen rate due to weak consumer sentiment [50] Company Strategy and Development Direction - The company is undergoing a transformation to become a more focused brand, emphasizing sports, style, and innovation while maintaining financial discipline [4][6] - A two-lever strategy is being implemented to address tariff impacts and improve brand health through premium product offerings and better pricing [57][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging environment due to tariffs and limited consumer spending but remains optimistic about brand health and future growth [7][38] - The company expects operating income for fiscal 2026 to be roughly half of fiscal 2025 levels due to increased costs and demand pressures [49] Other Important Information - The company is focusing on building deeper connections with consumers and enhancing brand authenticity [6][7] - A renewed partnership with the NFL and various influencer collaborations are part of the strategy to engage younger demographics [31][34] Q&A Session Summary Question: How are tariffs impacting demand from wholesale partners? - Management noted that the tariff environment is challenging but emphasized that their strategy remains focused on creating desirable products and improving pricing power [56][57] Question: Can you elaborate on brand health improvements? - Management highlighted improvements in brand perception, particularly among the 18 to 34 demographic, and noted positive trends in sell-through rates for key products [60][62] Question: What is the outlook for the order book for the holiday season? - Management indicated that while there is some uncertainty due to tariffs, there is positive momentum with new product launches and retailer engagement [90][91]

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported a **net loss of $2.6 million** for Q1 FY2026, a substantial improvement from the prior year, with total assets increasing to **$4.87 billion** and positive operating cash flow of **$48.9 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total Current Assets** | $2,902,858 | $2,329,097 | | Cash and cash equivalents | $910,985 | $501,361 | | Inventories | $1,141,829 | $945,836 | | **Total Assets** | **$4,865,191** | **$4,300,871** | | **Total Current Liabilities** | $1,895,375 | $1,109,143 | | Current maturities of long-term debt | $599,757 | $— | | **Total Liabilities** | **$2,990,762** | **$2,410,593** | | **Total Stockholders' Equity** | **$1,874,429** | **$1,890,278** | Condensed Consolidated Statement of Operations Highlights (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net revenues | $1,134,068 | $1,183,665 | | Gross profit | $546,496 | $562,675 | | Income (loss) from operations | $3,323 | $(299,728) | | **Net income (loss)** | **$(2,612)** | **$(305,426)** | | **Diluted EPS** | **$(0.01)** | **$(0.70)** | Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $48,852 | $152,975 | | Net cash used in investing activities | $(35,362) | $4,319 | | Net cash provided by (used in) financing activities | $387,303 | $(128,220) | | **Net increase in cash** | **$410,107** | **$26,244** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Disclosures detail the **2025 restructuring plan** incurring **$12.8 million** in charges, a **$400 million** new senior note issuance, and an **$8.9 million** litigation settlement payment - The company issued **$400.0 million** in 7.25% senior unsecured notes due 2030, with proceeds intended to redeem or discharge the **$600.0 million** 3.25% senior notes due 2026 during the second quarter of Fiscal 2026[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - A settlement was reached in the Derivative Actions, including the company implementing various corporate governance measures for three years and receiving a payment of **$8.9 million**, funded by insurance proceeds, on behalf of the defendants[73](index=73&type=chunk) 2025 Restructuring Plan Charges (in thousands) | Charge Category | Three Months Ended June 30, 2025 | Estimated Charges Remaining | | :--- | :--- | :--- | | Costs in restructuring charges | $12,828 | $30,203 | | Costs in SG&A expenses | $8,259 | $19,548 | | **Total restructuring & related charges** | **$21,087** | **$49,751** | Net Revenues by Product Category (in thousands) | Product Category | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Apparel | $746,592 | $757,792 | | Footwear | $265,855 | $310,389 | | Accessories | $100,078 | $92,545 | | **Total Net Sales** | **$1,112,525** | **$1,160,726** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Quarterly revenue declined **4.2%** due to market challenges, yet gross margin improved to **48.2%** and SG&A decreased **36.7%**, with **$911 million** in cash bolstering liquidity [Overview and Quarterly Results](index=38&type=section&id=Overview%20and%20Quarterly%20Results) Total net revenues decreased **4.2%** due to challenging market conditions, with Footwear revenue down **14.3%**, while gross margin improved **70 basis points** to **48.2%** - Key financial highlights for the quarter ended June 30, 2025 compared to the prior year include: total net revenues decreased **4.2%**, wholesale revenue decreased **4.6%**, direct-to-consumer revenue decreased **3.5%**, Footwear revenue decreased **14.3%**, and gross margin increased **70 basis points** to **48.2%**[156](index=156&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Net revenues decreased **4.2%** to **$1.13 billion**, primarily from a **14.3%** drop in Footwear, while gross margin improved to **48.2%** and SG&A expenses fell **36.7%** Revenue Breakdown and Change (in thousands) | Category | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | **By Product** | | | | | Apparel | $746,592 | $757,792 | (1.5)% | | Footwear | $265,855 | $310,389 | (14.3)% | | Accessories | $100,078 | $92,545 | 8.1% | | **By Channel** | | | | | Wholesale | $649,050 | $680,513 | (4.6)% | | Direct-to-consumer | $463,475 | $480,213 | (3.5)% | - Gross margin increased by **70 basis points**, driven by favorable foreign exchange (**+55 bps**), product mix (**+30 bps**), and pricing benefits (**+30 bps**), partially offset by unfavorable channel mix (**-30 bps**) and supply chain costs (**-15 bps**)[169](index=169&type=chunk) - SG&A expenses decreased by **$307.0 million** (**36.7%**), primarily due to lower litigation reserve expense compared to the prior year, which included costs for settling the Consolidated Securities Action litigation[171](index=171&type=chunk)[172](index=172&type=chunk) [Segment Results of Operations](index=44&type=section&id=Segment%20Results%20of%20Operations) North America revenue declined **5.5%**, while EMEA revenue grew **9.6%** with operating income surging **93.8%**, and Corporate Other's operating loss significantly narrowed Net Revenues by Geographic Segment (in thousands) | Region | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | North America | $670,319 | $709,260 | (5.5)% | | EMEA | $248,607 | $226,892 | 9.6% | | Asia-Pacific | $163,386 | $181,836 | (10.1)% | | Latin America | $54,575 | $64,409 | (15.3)% | Operating Income (Loss) by Geographic Segment (in thousands) | Region | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | North America | $121,437 | $147,889 | (17.9)% | | EMEA | $39,643 | $20,456 | 93.8% | | Asia-Pacific | $14,703 | $9,935 | 48.0% | | Latin America | $6,606 | $15,171 | (56.5)% | | Corporate Other | $(179,066) | $(493,179) | 63.7% | [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds **$911 million** in cash, with operating cash flow at **$48.9 million**, and issued **$400 million** in new senior notes while retaining **$410 million** for share repurchases - The company had approximately **$911 million** of cash and cash equivalents as of June 30, 2025[188](index=188&type=chunk) - On June 23, 2025, the company issued **$400 million** in aggregate principal amount of 7.25% senior unsecured notes due 2030[196](index=196&type=chunk)[207](index=207&type=chunk) - No shares were repurchased during the three months ended June 30, 2025, with approximately **$410 million** remaining under the current share repurchase program[192](index=192&type=chunk)[224](index=224&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No significant changes to market risk have occurred since March 31, 2025, with further details available in the Fiscal 2025 Annual Report - There have been no significant changes to the company's market risk since March 31, 2025[214](index=214&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed ineffective due to a material weakness in balance sheet account reconciliations, with remediation efforts ongoing through Fiscal 2026 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were not effective due to a material weakness in internal control over financial reporting[215](index=215&type=chunk) - The material weakness relates to the company not designing and maintaining effective controls over the review and execution of certain balance sheet account reconciliations[216](index=216&type=chunk) - Remediation efforts are underway, including implementing a new account reconciliation policy, enhancing controls, and training process owners, with these efforts expected to continue throughout Fiscal 2026[217](index=217&type=chunk)[219](index=219&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with specific details on certain matters referenced in Note 8 of the financial statements - The company refers to Note 8 of the Condensed Consolidated Financial Statements for information on certain legal proceedings[221](index=221&type=chunk) [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) No new risk factors are disclosed in this report, with comprehensive details available in the Fiscal 2025 Annual Report on Form 10-K - The company refers readers to the risk factors discussed in Part I, Item 1A of its Annual Report on Form 10-K for Fiscal 2025[222](index=222&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares of Class C Common Stock were repurchased during the quarter, leaving approximately **$410.0 million** available under the repurchase program Issuer Purchases of Equity Securities (Q1 FY2026) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining Under Program (in millions) | | :--- | :--- | :--- | :--- | | April 2025 | — | $— | $410.0 | | May 2025 | — | $— | $410.0 | | June 2025 | — | $— | $410.0 | [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or officer of the Company adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[225](index=225&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including indentures, credit agreement amendments, and officer certifications