BALTIMORE, July 25, 2025 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) will report its first quarter fiscal 2026 results for the period ended June 30, 2025, on Friday, August 8, 2025, at approximately 7:00 a.m. Eastern Time (ET). Following the release, the company will host a conference call and webcast at 8:30 a.m. ET to review its results and strategic progress.About Under Armour, Inc.Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor, marketer, and distributor of branded ...

Core Insights - Deckers Outdoor Corporation (DECK) is experiencing significant growth driven by its brands HOKA and UGG, while Under Armour, Inc. (UAA) is transforming into a premium athletic brand [1] - The competitive landscape raises questions about which stock offers better upside potential for investors [1] Deckers Outdoor Corporation (DECK) - Deckers is focusing on high-margin markets, with fiscal 2025 net sales reaching $4.98 billion, a 16.3% year-over-year increase [2] - Projected first-quarter revenues for fiscal 2026 are between $890 million and $910 million, with HOKA expected to grow in low-double digits and UGG in mid-single digits [2] - Product innovation is key, with strong demand for updated HOKA models and new UGG hybrid products [3] - The company is expanding its omni-channel presence, balancing growth between wholesale and direct-to-consumer (DTC) channels, with international markets outperforming [4] - Despite record results in fiscal 2025, DECK faces challenges from new tariffs potentially adding costs of up to $150 million in fiscal 2026 [5] - Gross margin is expected to decline from 57.9% in fiscal 2025, with a projected contraction of 210 basis points for fiscal 2026 [6] - SG&A costs are anticipated to grow faster than revenues, leading to a decline in earnings per share to 62-67 cents from 75 cents in the prior year [8] - DECK's stock has dropped 13.6% over the past three months due to margin pressures and cautious guidance [20] Under Armour, Inc. (UAA) - Under Armour is enhancing its DTC channel by focusing on premium pricing, resulting in double-digit growth in average unit retail in fiscal 2025 [10] - The brand's loyalty program, with 28 million members, significantly contributes to U.S. DTC revenues [11] - EMEA region is a strong performer, with plans for expansion into France, Spain, and Germany in fiscal 2026 [12] - UAA recorded a 170-basis-point increase in gross margin in fiscal 2025, with expectations for further margin gains in fiscal 2026 [13][14] - The company is targeting $75 million in annualized savings by the end of fiscal 2026 through cost optimization [15] - Despite expected revenue declines of 4-5% in the first quarter of fiscal 2026, UAA is focused on long-term brand elevation and operational discipline [16][17] - UAA's stock has gained 5.5% over the past three months, driven by improving margins and premiumization efforts [20] Comparative Analysis - The Zacks Consensus Estimate for DECK suggests a 7.6% growth in sales but a 4.4% decline in earnings per share for fiscal 2026 [18] - UAA's estimates indicate a 2.1% decline in sales but a 9.7% growth in earnings per share for fiscal 2026 [19] - DECK is trading at a forward P/S multiple of 2.77, while UAA's is at 0.57, indicating UAA may offer better value [22] - Under Armour is viewed as a better investment case due to its strategic shift towards premiumization and disciplined cost control [25][26]

Core Viewpoint - Under Armour, Inc. has announced a private offering of $400 million in Senior Notes with a 7.250% interest rate due in 2030, expected to close on June 23, 2025 [1][2] Group 1: Offering Details - The Senior Notes will be senior, unsecured obligations of Under Armour, with interest paid semiannually [2] - The offering is exempt from registration under the Securities Act of 1933 [1][4] Group 2: Use of Proceeds - Under Armour plans to use the net proceeds from the offering, along with other funds, to redeem or retire $600 million of its outstanding 3.25% Senior Notes due in 2026 within 60 days of the offering's closing [3][6] Group 3: Company Overview - Under Armour, Inc. is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories, aimed at enhancing human performance [8]

Core Insights - Under Armour, Inc. (UAA) reported a gross margin of 46.7% for Q4 fiscal 2025, a year-over-year increase of 170 basis points, driven by lower product and freight costs, reduced discounting, and improved royalty terms [1][2][3] Financial Performance - For fiscal 2025, the gross margin was 47.9%, up 180 basis points from the previous year, attributed to reduced supply-chain costs and strategic discount reductions [3] - The company anticipates a gross margin expansion of 40-60 basis points in Q1 fiscal 2026, supported by favorable product mix and continued supply-chain efficiencies [5] Strategic Initiatives - Under Armour is focusing on "higher quality revenue" and regaining pricing power by reducing reliance on markdowns, which is central to its brand elevation strategy [4] - The ongoing restructuring program has led to $89 million in transformation charges but yielded $35 million in savings for fiscal 2025, with expectations of reaching a $75 million annualized cost-saving run-rate by the end of fiscal 2026 [7][9] Cost Management - Selling, general and administrative (SG&A) expenses are projected to decline by 40% from the prior-year quarter, reflecting disciplined spending and enhanced productivity [8][9] - The combination of restructuring-driven savings and tighter cost control positions Under Armour to support gross margin gains and improve overall profitability [9] Market Performance - UAA shares gained 0.8% in the past month, outperforming the Zacks Textile – Apparel industry's decline of 16.5% and the broader Consumer Discretionary sector's performance [10]

Group 1 - Under Armour intends to offer $400 million aggregate principal amount of Senior Notes due 2030 in a private offering [1][2] - The Notes will be senior, unsecured obligations and will bear interest semiannually [2] - The net proceeds from the Proposed Offering will be used to redeem all $600 million of outstanding 3.25% Senior Notes due 2026 [3] Group 2 - The offering is exempt from registration under the Securities Act of 1933 and will be made only to qualified institutional buyers [4][5] - The announcement does not constitute a notice of redemption for the 2026 Notes [6] - Under Armour is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories [8]

Core Viewpoint - Under Armour's shares have increased by approximately 11.8% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Estimates Movement - Estimates for Under Armour have been revised upward over the past month, with the consensus estimate shifting by 1218.18% due to these changes [2] VGM Scores - Under Armour currently holds a poor Growth Score of F and a similar score of F for momentum, while receiving a D grade for value, placing it in the bottom 40% for this investment strategy; the overall aggregate VGM Score is F [3] Outlook - The upward trend in estimates appears promising, with Under Armour holding a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return from the stock in the coming months [4]

Revenue and Sales Performance - 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 total net revenues, with $2.8 billion generated from sales in the United States[39][40]. - Direct-to-consumer sales represented 40% of net revenues, while wholesale sales accounted for 58%[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[195]. - Direct-to-consumer revenue decreased by 10.5%, while wholesale revenue decreased by 8.1%[190]. - North America net revenue decreased by 11.4%, while EMEA increased by 0.4%[190]. - Total net revenues decreased by $537.6 million, or 9.4%, to $5.16 billion during Fiscal 2025 from $5.70 billion in Fiscal 2024[196]. - Net sales decreased by $509.9 million, or 9.1%, to $5.07 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]. Operational and Strategic Initiatives - The company aims to enhance consumer engagement through a digital strategy that strengthens brand connectivity[19]. - The company is focused on expanding its wholesale distribution and increasing direct-to-consumer sales channels for long-term growth[19]. - The company has a license agreement with partners in Japan and Australia to expand its market presence in those regions[46]. - The company is investing significantly in enhancing digital shopping capabilities and consumer loyalty programs to adapt to evolving consumer preferences[101]. - The company plans to enhance its digital strategy to improve consumer engagement and brand connectivity[185]. - The company has invested in expanding its network of Brand and Factory House stores and enhancing its digital strategy, which requires substantial cash investments[116]. 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]. - Gross profit decreased by $155.5 million to $2.5 billion during Fiscal 2025, while gross margin increased to 47.9% from 46.1%[202]. - Selling, general and administrative expenses increased by $201.5 million, or 8.4%, to $2.60 billion during Fiscal 2025, representing 50.4% of net revenues[205][206]. - 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][190]. - Restructuring charges increased by $58.0 million during Fiscal 2025, primarily due to employee-related and facility-related charges[208]. - Interest expense, net increased by $6.4 million to $6.1 million during Fiscal 2025, primarily due to a decrease in interest income[210]. - Other expense, net increased by $45.5 million to $13.4 million during Fiscal 2025, primarily due to an earn-out recorded in connection with the sale of MyFitnessPal[214]. - Income tax expense decreased by $32.9 million to a tax benefit of $2.9 million during Fiscal 2025, with an effective tax rate of 1.4%[215]. Market and Competitive Landscape - The competitive landscape includes major brands like NIKE, adidas, and PUMA, with the company focusing on brand image and product quality to differentiate itself[59]. - The company operates in a highly competitive market, with competitors having greater resources and brand recognition, which may lead to a loss of market share[88]. - The company faces intense competition for employees and regularly collects feedback to improve the teammate experience[71]. - The company faces significant pricing pressure due to intense competition, which may negatively impact margins and profitability[91]. Supply Chain and Manufacturing - 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 products were manufactured in Jordan, Vietnam, Cambodia, and Indonesia[52]. - The company generated approximately 69% of its apparel and accessories products from ten manufacturers in Fiscal 2025, with nine manufacturers producing nearly all of its footwear products[109]. - The company relies on third-party suppliers for raw materials, and disruptions in supply could adversely affect its ability to meet consumer demand and result in lower revenues[110]. - Labor disruptions at ports or suppliers could create significant risks for the company's operations, leading to canceled orders and increased expenses[114]. - The company evaluates all manufacturers for quality systems, social compliance, and financial strength before selection and on an ongoing basis[53]. Human Capital and Organizational Structure - As of March 31, 2025, the company had approximately 14,400 teammates worldwide, with about 6,500 being full-time employees[64]. - The total rewards strategy aims to provide competitive pay and benefits, with approximately 64% of the workforce located in the United States[69]. - The company has a human capital management strategy focused on creating an engaging workplace and retaining talent through development opportunities[63]. - The leadership team includes experienced executives, with Kevin Plank serving as President and CEO since April 2024[72]. - The company has experienced significant changes in its executive management team, which could disrupt business operations and customer relationships[125]. Risks and Regulatory Compliance - Global events, including public health emergencies, can disrupt operations and negatively affect financial results[94]. - Fluctuations in the cost of raw materials and transportation can adversely affect profit margins and financial condition[93]. - Economic downturns or inflation can materially impact consumer discretionary spending, affecting sales and growth expectations[82]. - The company may not be able to mitigate cost increases from tariffs and trade restrictions, which could adversely impact financial results[87]. - Compliance with evolving regulatory standards and data privacy laws could result in significant costs and impact profitability[138]. - The company is exposed to currency exchange rate fluctuations, which could materially impact financial results[134]. - The company has identified a material weakness in its internal control over financial reporting as of March 31, 2025, which could lead to material misstatements in financial statements and a decline in stock price[149]. - The company is actively engaged in remediation efforts to address the identified material weakness, but there is no guarantee of success in promptly resolving it[151]. - The company has significant ongoing legal proceedings that could adversely affect its business, reputation, financial condition, and stock price[147]. Cybersecurity and Technology - The company has implemented a cybersecurity program aligned with its enterprise risk management program to mitigate data security threats[156]. - The company engages independent third parties for regular penetration testing and cybersecurity audits to enhance its information security[157]. - The company maintains cyber liability insurance to help cover financial losses from cybersecurity incidents, although it may not cover all types of incidents[156]. - The company depends heavily on information technology for its operations, and any failure or interruption could harm its business effectiveness[121]. Real Estate and Facilities - The company leases approximately 3.5 million square feet of distribution facilities across Maryland, Tennessee, and California, with plans to exit the Rialto, California facility by March 2026[165]. - The company operates 441 Brand and Factory House retail stores across various countries, with lease termination dates extending through 2038[166]. - The company has moved its principal executive and administrative offices to a newly owned complex in Baltimore, Maryland, while evaluating options for its previous office space[164].

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].

Shares of athletic wear name Under Armour Inc (NYSE:UAA) are up 0.8% to trade at $6.26 this morning, enjoying a post-earnings lift on the charts. The company posted a narrower-than-expected fiscal fourth-quarter loss and topped revenue estimates. CEO Kevin Plank said turnaround efforts are paying off, despite the "complex macroeconomic backdrop" with tariff tensions. UAA is facing off with its 80-day moving average and remains 24.5% lower for 2025. May has had a strong start however, with the shares up near ...

Core Insights - Under Armour reported revenue of $1.18 billion for the quarter ended March 2025, reflecting an 11.4% decline year-over-year, with an EPS of -$0.08 compared to $0.11 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.16 billion by 1.52%, while the EPS surpassed the consensus estimate of -$0.09 by 11.11% [1] Financial Performance Metrics - Total Doors: 441, below the two-analyst average estimate of 465 [4] - North America Net Revenues: $689.40 million, exceeding the average estimate of $664.36 million, but down 10.7% year-over-year [4] - Asia-Pacific Net Revenues: $164.83 million, below the average estimate of $174.60 million, representing a 27.3% decline year-over-year [4] - Latin America Net Revenues: $45.09 million, below the average estimate of $50.19 million, reflecting a 10.3% decrease year-over-year [4] - EMEA Net Revenues: $278.62 million, slightly above the average estimate of $274.97 million, with a year-over-year change of -1.9% [4] - Footwear Net Revenues: $281.85 million, below the average estimate of $300.17 million, showing a 16.6% decline year-over-year [4] - Apparel Net Revenues: $780.37 million, above the average estimate of $765.79 million, but down 11.1% year-over-year [4] - Total Net Sales: $1.15 billion, slightly above the average estimate of $1.13 billion, with an 11.6% year-over-year decline [4] - Accessories Net Revenues: $91.50 million, exceeding the average estimate of $80.22 million, with a year-over-year increase of 2.3% [4] - License Revenues: $24.22 million, slightly below the average estimate of $24.53 million, reflecting a 14.9% decline year-over-year [4] - Wholesale Net Revenues: $767.60 million, above the average estimate of $742.17 million, but down 9.7% year-over-year [4] - Direct to Consumer Net Revenues: $386.11 million, below the average estimate of $405.57 million, representing a 15.1% decline year-over-year [4] Stock Performance - Under Armour shares have returned +14.2% over the past month, outperforming the Zacks S&P 500 composite's +9.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]