Core Viewpoint - Under Armour's Q1 FY2026 earnings report indicates operational progress with improved gross margins and adjusted operating income, despite a decline in GAAP revenue and adjusted EPS falling short of expectations [1][2][3] Financial Performance - GAAP revenue for Q1 FY2026 was $1,134 million, a decrease of 4.2% year-over-year and 2.0% below analyst expectations of $1,155 million [1][3] - Adjusted EPS was $0.02, below Wall Street's estimate of $0.03, reflecting ongoing sales declines and an uncertain outlook [2][3] - Adjusted operating income increased to $24 million from $8 million in the prior year, while GAAP net income improved to -$2.6 million from -$305 million [10][11] Revenue Trends - North America, Under Armour's largest market, saw a 5.5% revenue decline to $670 million, while international revenue fell 1% to $467 million [6] - EMEA revenue grew by 9.6% to $248.6 million, contrasting with declines in Asia-Pacific (down 10.1%) and Latin America (down 15.3%) [6] - Direct-to-consumer (DTC) sales contracted by 3.5%, with e-commerce revenue shrinking by 12% [7][13] Product and Market Dynamics - Apparel revenue decreased by 1.5%, while footwear revenue dropped 14.3%, indicating competitive challenges [8] - Accessories revenue increased by 8.1%, showcasing some product category resilience [8] - The company is focusing on premiumization and brand strength through high-profile partnerships and innovative product launches [5][12] Strategic Focus Areas - Under Armour is prioritizing digital engagement and expanding its DTC and e-commerce channels, despite a deliberate pullback on discounting [5][13] - Supply chain management remains critical, with ongoing risks related to sourcing and tariffs [14] - The company aims to streamline operations and cut costs through a transformation plan, expecting annual savings of $75 million by the end of FY2026 [11][12] Future Outlook - For Q2 FY2026, management anticipates a revenue decline of 6-7%, with gross margin projected to drop by 3.4-3.6 percentage points [16] - Adjusted operating income is expected to be in the range of $30-40 million, with adjusted diluted EPS forecasted between $0.01 and $0.02 [16] - There is significant uncertainty regarding tariffs, cost inflation, and consumer demand, leading to no full-year guidance [16][17]

[Executive Summary & Business Overview](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Overview) This section outlines Under Armour's Q1 FY2026 performance, emphasizing management's strategic focus on brand strengthening and product innovation [Management Commentary](index=1&type=section&id=Management%20Commentary) Under Armour's CEO reported Q1 results met expectations amid transformation, focusing on premium products and brand strengthening despite market uncertainty - Quarterly results met or exceeded expectations while the company undergoes a significant transformation[2](index=2&type=chunk) - Strategic focus is on enhancing brand positioning with premium products, increasing average selling prices through innovation, and optimizing top-volume programs[2](index=2&type=chunk) [First Quarter Fiscal 2026 Financial Performance](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Financial%20Performance) Under Armour's Q1 FY2026 saw a 4% revenue decline to $1.1 billion, with mixed financial results and an increase in cash and inventories [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Q1 FY2026 saw a 4% revenue decline to $1.1 billion, with GAAP operating income of $3 million and net loss of $3 million, while gross margin improved to 48.2% Q1 FY2026 Key Financial Metrics | Metric | Q1 FY2026 | Change (YoY) | | :--- | :--- | :--- | | **Revenue** | $1.1 billion | -4% | | **Gross Margin** | 48.2% | +70 bps | | **Operating Income** | $3 million | N/A (vs. loss) | | **Adjusted Operating Income** | $24 million | +204.5% | | **Net Loss** | $3 million | N/A (vs. larger loss) | | **Adjusted Net Income** | $9 million | +148.0% | | **Diluted EPS** | -$0.01 | N/A (vs. -$0.70) | | **Adjusted Diluted EPS** | $0.02 | +100% | - Gross margin increased to **48.2%** primarily due to favorable foreign exchange, pricing, and product mix, which was partially offset by unfavorable channel mix and higher supply chain costs[3](index=3&type=chunk) - SG&A expenses decreased significantly by **37% to $530 million**, mainly because the prior year included a large legal reserve expense, with adjusted SG&A decreasing by 6%[3](index=3&type=chunk) [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Total revenue declined 4% to $1.1 billion, with North America down 5% and international down 1%, driven by decreases in wholesale, DTC eCommerce, and footwear Q1 FY2026 Revenue Breakdown by Geography | Region | Revenue (USD) | Change (YoY) | Currency Neutral Change | | :--- | :--- | :--- | :--- | | **North America** | $670 million | -5% | -5% | | **International** | $467 million | -1% | -2% | | *EMEA* | $249 million | +10% | +6% | | *Asia-Pacific* | $163 million | -10% | -10% | | *Latin America* | $55 million | -15% | -8% | Q1 FY2026 Revenue Breakdown by Channel & Product | Category | Revenue (USD) | Change (YoY) | | :--- | :--- | :--- | | **Wholesale** | $649 million | -5% | | **Direct-to-Consumer** | $463 million | -3% | | **Apparel** | $747 million | -1% | | **Footwear** | $266 million | -14% | | **Accessories** | $100 million | +8% | - Within the Direct-to-Consumer segment, revenue from owned and operated stores increased by **1%**, but this was offset by a **12% decline in eCommerce revenue**[3](index=3&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of June 30, 2025, cash and equivalents reached $911 million, inventories rose to $1.1 billion, and operating cash flow was $49 million, with no credit facility borrowings Key Balance Sheet Items (as of June 30, 2025) | Item | Amount (USD) | Change from Mar 31, 2025 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $911.0 million | +$409.6 million | | **Inventories** | $1,141.8 million | +$196.0 million | | **Total Assets** | $4,865.2 million | +$564.3 million | | **Total Liabilities** | $2,990.8 million | +$580.2 million | - The company raised **$400 million in senior notes** during the quarter, intending to use the proceeds to retire $600 million in senior notes due June 2026[5](index=5&type=chunk) - Net cash provided by operating activities was **$48.9 million**, a decrease from $153.0 million in the prior year's quarter, primarily due to changes in operating assets and liabilities[26](index=26&type=chunk) [Fiscal 2025 Restructuring Plan](index=2&type=section&id=Fiscal%202025%20Restructuring%20Plan) This section details the Fiscal 2025 Restructuring Plan, outlining its estimated costs and the charges incurred to date by Q1 FY2026 [Restructuring Plan Update](index=2&type=section&id=Restructuring%20Plan%20Update) The Fiscal 2025 Restructuring Plan, estimated at $140-$160 million, has incurred $110 million in charges by Q1 FY2026, with remaining charges expected by end of FY2026 Restructuring Plan Costs (as of Q1 FY2026) | Metric | Amount (USD) | | :--- | :--- | | **Total Estimated Cost** | $140M - $160M | | **Total Charges Incurred to Date** | $110 million | | *Restructuring & Impairment Charges* | $71 million | | *Other Transformational Expenses* | $39 million | | **Cash-Related Charges Incurred** | $65 million | | **Non-Cash-Related Charges Incurred** | $45 million | - The company anticipates recognizing the remaining charges associated with the restructuring plan by the end of fiscal 2026[4](index=4&type=chunk) [Second Quarter Fiscal 2026 Outlook](index=2&type=section&id=Second%20Quarter%20Fiscal%202026%20Outlook) This section provides Under Armour's Q2 FY2026 guidance, projecting revenue decline, gross margin compression, and an operating loss due to market headwinds [Q2 FY2026 Guidance](index=2&type=section&id=Q2%20FY2026%20Guidance) Q2 FY2026 outlook projects a 6-7% revenue decline, a 340-360 bps gross margin drop due to tariffs, and a GAAP operating loss of $10 million to breakeven Q2 FY2026 Outlook | Metric | Guidance | | :--- | :--- | | **Revenue** | Decline 6% to 7% | | **Gross Margin** | Decline 340 to 360 bps | | **Operating Income (Loss)** | ($10) million to $0 million | | **Adjusted Operating Income** | $30 million to $40 million | | **Diluted Loss Per Share** | ($0.07) to ($0.08) | | **Adjusted Diluted EPS** | $0.01 to $0.02 | - The expected gross margin decline is primarily attributed to supply chain headwinds from tariffs and an unfavorable channel mix[6](index=6&type=chunk) - Adjusted SG&A is expected to grow at a high-single-digit rate, driven by higher marketing investments compared to the prior year when spending was shifted to the second half[6](index=6&type=chunk) [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents Under Armour's Q1 FY2026 consolidated financial statements, including income, balance sheet, cash flow, non-GAAP reconciliations, and store count [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2026 net revenues were $1.134 billion, with gross profit at $546.5 million, resulting in an operating income of $3.3 million and a net loss of $2.6 million Q1 FY2026 Income Statement (in thousands) | Line Item | Q1 2025 (ended Jun 30) | Q1 2024 (ended Jun 30) | | :--- | :--- | :--- | | **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 net income (loss) per share** | $(0.01) | $(0.70) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets reached $4.87 billion, with cash at $911 million and inventories at $1.14 billion, while total liabilities increased to $2.99 billion Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $910,985 | $501,361 | | **Inventories** | $1,141,829 | $945,836 | | **Total current assets** | $2,902,858 | $2,329,097 | | **Total assets** | $4,865,191 | $4,300,871 | | **Total current liabilities** | $1,895,375 | $1,109,143 | | **Total liabilities** | $2,990,762 | $2,410,593 | | **Total stockholders' equity** | $1,874,429 | $1,890,278 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY2026 saw $48.9 million in operating cash, $35.4 million used in investing, and $387.3 million provided by financing, leading to a $410.1 million net cash increase Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended June 30, 2025 | | :--- | :--- | | **Net cash provided by operating activities** | $48,852 | | **Net cash used in investing activities** | $(35,362) | | **Net cash provided by financing activities** | $387,303 | | **Net increase in cash** | $410,107 | | **Cash at end of period** | $925,158 | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) Q1 FY2026 non-GAAP reconciliations show adjusted operating income of $24.4 million, adjusted net income of $8.6 million, and adjusted diluted EPS of $0.02, primarily excluding restructuring charges - Currency-neutral net revenue declined **4.4%** in Q1, slightly worse than the GAAP decline of 4.2%, indicating a small positive impact from foreign exchange[28](index=28&type=chunk) Q1 FY2026 GAAP to Non-GAAP Reconciliation | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | **Operating Income** | $3.3M | +$21.1M | $24.4M | | **Net Income (Loss)** | ($2.6M) | +$11.2M | $8.6M | | **Diluted EPS** | ($0.01) | +$0.03 | $0.02 | Q2 FY2026 Outlook GAAP to Non-GAAP Reconciliation | Metric | GAAP Outlook | Adjustments | Non-GAAP Outlook | | :--- | :--- | :--- | :--- | | **Operating Income** | ($10M) - $0M | +$40M | $30M - $40M | | **Diluted EPS** | ($0.08) - ($0.07) | +$0.09 | $0.01 - $0.02 | [Company-Owned & Operated Door Count](index=14&type=section&id=Company-Owned%20%26%20Operated%20Door%20Count) As of June 30, 2025, Under Armour operated 442 stores globally, a net increase of one, with North American stores decreasing and international stores increasing Store Count as of June 30 | Region | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **North America** | 195 | 200 | -5 | | **International** | 247 | 241 | +6 | | **Total Doors** | **442** | **441** | **+1** |

作为合作的重要内容，今年夏天，由AUBL选拔出的球员将前往重庆，与四届NBA总冠军斯蒂芬· 库里会面，并将在由库里品牌与安德玛联袂举办的表演赛上崭露头角。 安德玛首席执行官Kevin Plank表示，"AUBL不仅是一个联赛，更是一场与安德玛品牌使命——'让 你变得更强'同频共振的革新，期待能在未来共同创造无限可能。" "安德玛一直致力于提升亚洲篮球生态系统，并对此投入颇丰，"安德玛亚太区营销副总裁兼中国及 韩国区总经理Simon Pestridge表示，"亚洲高校篮球呈现出了爆发式的增长潜力，AUBL为培育这一新兴 市场提供了绝佳的平台。很高兴我们能在联赛成立之初以官方高性能运动装备及比赛用球合作伙伴的身 份参与其中。" AUBL首席执行官李锦天表示，此次合作将极大地帮助AUBL进一步在亚洲构建真正的大学体育文 化，并扩大联赛在全球篮球受众面前的影响力。 亚洲大学生篮球联赛（AUBL）近期宣布与安德玛达成战略合作，后者正式成为联赛官方高性能运 动装备及比赛用球合作伙伴。 AUBL首次赛事将于8月18日-24日在杭州开赛，届时亚洲12支男子大学篮球队将展开角逐。作为官 方合作伙伴，安德玛不仅将为所有参赛球队提 ...

Core Insights - Under Armour is launching the 2025 CURRY brand Asian tour themed "Opening a Big Scene" [1] - The tour will be led by CURRY brand president and NBA star Stephen Curry along with signed player De'Aaron Fox [1] - The CURRY CON sports gathering and CURRY CAMP training camp will debut in China in August [1] Company Overview - CURRY brand is a collaboration between Under Armour and Stephen Curry aimed at providing equal sports opportunities for youth globally [1] - The brand focuses on offering effective solutions for under-resourced youth sports communities, including professional sports gear, advanced coaching concepts, and safe sports venues [1] - CURRY brand features multiple product lines, including basketball and golf, covering sports apparel, footwear, and related equipment [1]

Core Viewpoint - The collaboration between sports brands and fashion designers has become increasingly common, but the market is nearing saturation, leading to consumer fatigue and challenges in maintaining brand identity [1][5][13] Group 1: Collaboration Trends - Sports brands have increasingly partnered with fashion and luxury brands to reach younger consumers and inject new design inspiration [1][4] - The initial collaborations, such as Nike with Sacai in 2015, were well-received and showcased innovative designs that blended fashion with sports [2][4] - The pandemic and the rise of athleisure have prompted sports brands to further penetrate the fashion industry, seeking to attract a broader consumer base [4][6] Group 2: Challenges in Collaboration - As collaborations proliferate, issues of product homogeneity arise, with many joint products lacking a true sports essence [5][6] - Fashion brands often dominate the design process, which can lead to sports brands being perceived as secondary players in these partnerships [7][8] Group 3: Emotional Connection and Storytelling - Emotional value and storytelling behind sports products are crucial for engaging consumers, as seen in Puma's collaboration for special edition jerseys that reflect team histories [8][11] - The design of these jerseys not only caters to fans but also appeals to fashion-conscious consumers, differentiating them from typical logo-heavy collaborations [11] Group 4: Future Outlook - The global sports leisure market is projected to reach $540 billion by 2027, indicating a significant opportunity for brands [13] - To stand out in a crowded market, sports brands must assert control over product design and leverage cultural narratives and emotional connections [13] - Successful future collaborations will hinge on effectively conveying the spirit of sports and the stories behind products, achieving a synergistic effect [13]

Core Viewpoint - The Beijing Consumer Association conducted a comparative test on children's clothing, revealing that approximately 14.1% of the 78 samples tested were found to be non-compliant with safety standards [2] Group 1: Test Results - A total of 78 samples from various brands, including FILA, LEE, and Jordan, were tested, with 11 samples from brands like ZARA and Dickies identified as problematic [5] - Four samples were noted for non-compliance in product usage instructions, including discrepancies in durability labels and missing safety category numbers [8] - Issues related to fiber content were highlighted, with certain products exceeding allowable deviation limits and lacking proper labeling, potentially misleading consumers and posing health risks [8] Group 2: Safety Concerns - Specific products, such as those from JELLYBABY and GMIFAMILY, were found to have safety hazards due to improper cord lengths and protruding cords, which could directly endanger children [8] - Color fastness issues were also reported, with nine samples failing to meet standards for wet rubbing fastness, raising concerns about potential health risks from dye absorption through the skin [9] Group 3: Regulatory Standards - The comparative test was conducted based on multiple standards, including GB 31701-2015 and GB/T 5296.4-2012, which outline safety technical requirements and labeling for children's textile products [9]

Revenue Breakdown - In Fiscal 2025, net revenues from apparel, footwear, and accessories represented 67%, 23%, and 8% of total revenues, respectively, with licensing arrangements contributing 2%[22]. - North America accounted for approximately 60% of net revenues, with U.S. sales reaching $2.8 billion in Fiscal 2025[39][40]. - Direct-to-consumer sales comprised 40% of net revenues, while wholesale sales accounted for 58% in Fiscal 2025[36]. - In Fiscal 2025, sales through the wholesale channel represented approximately 58% of the company's net revenues[96]. - Total net revenues for Fiscal 2025 decreased by 9.4% to $5,164.3 million compared to $5,701.9 million in Fiscal 2024[190]. - Total net revenues decreased by $537.6 million, or 9.4%, to $5.2 billion during Fiscal 2025 from $5.7 billion in Fiscal 2024[196]. - Net sales decreased by $509.9 million, or 9.1%, to $5.1 billion during Fiscal 2025, primarily due to lower unit sales in apparel and footwear[198]. - License revenues decreased by $16.7 million, or 15.0%, to $94.6 million during Fiscal 2025, mainly due to lower revenues from North American licensing partners[199]. Manufacturing and Sourcing - The top five suppliers provided approximately 38% of the fabric used in apparel and accessories, primarily sourced from Taiwan, China, Malaysia, and Vietnam[51]. - In Fiscal 2025, 67% of apparel and accessories were manufactured in Jordan, Vietnam, Cambodia, and Indonesia, with ten manufacturers producing 69% of these products[52]. - The company is exploring ways to diversify sourcing in response to global trade policy changes[52]. - The company evaluates all manufacturers for quality systems, social compliance, and financial strength before selection and on an ongoing basis[53]. - The company generated approximately 69% of its apparel and accessories products from ten manufacturers in Fiscal 2025, with nine manufacturers producing nearly all footwear products[109]. Digital Strategy and Consumer Engagement - The company aims to enhance consumer engagement through a digital strategy that includes multiple digital touchpoints[19]. - The company is investing significantly in enhancing digital shopping capabilities and consumer loyalty programs to adapt to evolving consumer preferences[101]. Marketing and Brand Strategy - The marketing strategy focuses on high-performing athletes and teams, leveraging sponsorships and grassroots events to drive brand awareness[31][30]. - The company owns major trademarks, including UA Logo® and UNDER ARMOUR®, and actively protects its intellectual property[56][57]. - The competitive landscape includes major brands like NIKE, adidas, and PUMA, with challenges from both global and regional competitors[59][60]. Financial Performance and Challenges - Net income for Fiscal 2025 was a loss of $201.27 million, compared to a net income of $232.04 million in Fiscal 2024[195]. - The company incurred restructuring charges of $57.97 million in Fiscal 2025, with total estimated charges expected to be between $140 million and $160 million[187][188]. - Selling, general and administrative expenses increased by 8.4% to $2,601.99 million[190]. - The company faces significant pricing pressure due to intense competition, which may negatively impact margins and profitability[91]. - Fluctuations in raw material costs and supply chain disruptions can adversely affect the company's profit margins and financial results[93]. - The company must successfully execute its long-term strategies, including expanding its direct-to-consumer business and enhancing digital offerings, to achieve growth objectives[99]. - A decline in sales to key customers could result in a material loss of net revenues, negatively impacting growth prospects[102]. Operational Efficiency and Management - Inventory management is crucial, with a focus on improving efficiency and reducing lead times to meet consumer demand[54]. - The company is executing a restructuring plan aimed at improving financial and operational efficiencies, but may not fully realize the expected benefits, potentially impacting profitability[127]. - The company has faced significant changes in its executive management team, which could disrupt operations and affect business goals[125]. - The company relies heavily on information technology, and any failure or interruption could harm its operational effectiveness[121]. - The company experienced operational disruptions due to cyberattacks, which could lead to delays in product fulfillment and reduced operational efficiency[122]. Sustainability and Compliance - The sustainability strategy aims to drive performance through sustainable innovations across product, home field, and team pillars[62]. - Climate change and increased regulatory focus on sustainability may adversely affect the company's brand, product sales, and operational results[117]. - Legal and regulatory compliance is critical, as failure to adhere to laws could lead to significant penalties and reputational damage[135]. Workforce and Culture - The workforce consists of approximately 14,400 teammates, with about 6,500 being full-time employees[64]. - The company emphasizes a culture of engagement and ethical practices, supported by various training and development programs[65][66]. - Total rewards strategy includes competitive pay and benefits, with a focus on pay equity and performance-based compensation[68][69]. - The company is committed to enhancing its leadership capabilities through mentoring and training programs[67]. Cash Flow and Financial Position - As of March 31, 2025, the company's cash and cash equivalents totaled $501 million, indicating a need for additional capital to manage and grow the business[130]. - The company anticipates no cash dividends will be declared or paid in the foreseeable future[175]. - The company is actively monitoring macroeconomic factors, including inflation and global trade policies, which may materially impact results in Fiscal 2026[192][193]. Risks and Vulnerabilities - The company relies heavily on consumer discretionary spending, which can decline during economic downturns, impacting sales and growth expectations[82]. - The company has limited brand recognition and operational experience in certain international markets, which may hinder its growth strategy and operational efficiency[105]. - The company relies on a limited number of distribution facilities, making it vulnerable to disruptions from natural disasters or operational difficulties[120]. - The company has experienced challenges with maintaining quality control standards, risking loss of net revenues and brand reputation[113]. - The company has historically provided supply chain finance support, but disruptions in financial markets could impact cash flow and liquidity for its partners[111].

Core Viewpoint - Under Armour, Inc. (NYSE: UAA) is at a critical juncture where its stock performance could vary significantly based on investor sentiment and market conditions [1]. Company Analysis - The investment thesis emphasizes a blend of value investing principles and a focus on long-term growth potential, suggesting that Under Armour may be undervalued [1]. - The strategy involves purchasing quality companies at a discount to their intrinsic value and holding them for long-term gains, which aligns with the company's growth trajectory [1].

Core Viewpoint - Under Armour's performance continues to decline, with a 9% revenue drop to $5.2 billion and a net loss of $201 million for the fiscal year 2025, despite management's positive outlook on restructuring efforts [2][3]. Financial Performance - For fiscal year 2025, Under Armour reported a revenue decrease of 9% to $5.2 billion and a net loss of $201 million [2]. - In Q4, revenue fell 11% year-over-year to $1.2 billion, with a net loss of $67 million [2]. - In fiscal year 2024, revenue declined 3% to $5.7 billion, with a net income of $232 million, down $142 million from the previous year [2]. Restructuring and Strategic Initiatives - Under Armour initiated a turnaround plan in June 2024, led by returning CEO Kevin Plank, focusing on eliminating excessive discounting and enhancing product exclusivity for members [3]. - The plan emphasizes a return to the core men's apparel business and the revival of the Flow technology with the Curry shoe series [3]. - A key strategy involves focusing on the Asia-Pacific market, particularly China, which is seen as a growth driver [3]. Market Position and Competition - Under Armour has increased its store count and localized marketing efforts in China, including a series of fan events featuring Stephen Curry [3]. - The company plans to invest more in marketing within the Asia-Pacific region, recognizing China's significant contribution to regional revenue [3]. - Despite the restructuring efforts, Under Armour faces stiff competition from both international brands like Nike and Adidas and domestic brands such as Anta and Li Ning in the Chinese market [4]. Future Outlook - Under Armour forecasts a revenue decline of 4% to 5% for Q1 of fiscal year 2026 compared to the same period in fiscal year 2025 [4].

Core Insights - Bombas founder David Heath is stepping down as CEO, with Jason LaRose taking over to lead the company through its next growth phase [1][2] - The company has experienced significant revenue growth, with a 22% increase in the current fiscal year and over $2 billion in lifetime sales [3] - Bombas aims to expand its wholesale presence from approximately 7% of sales to between 10% and 20% to sustain growth [4][5] Company Strategy - The footwear segment is the fastest-growing area, with expected revenue growth of over 70% this year, while sock sales have increased by 17% year-over-year [3] - Bombas is exploring physical store options and expanding its assortment with current partners, avoiding Amazon as a wholesale channel [5][6] - The company emphasizes the importance of storytelling and brand integrity in its expansion strategy, focusing on partnerships that align with its values [8][9] Industry Context - The shift from a direct-to-consumer model to wholesale is seen as necessary for sustainable growth, as many digitally native brands face challenges in profitability [7] - Brands that have successfully transitioned to wholesale have recognized the need for strategic partnerships to maintain brand integrity while scaling [8][10]