Core Insights - Under Armour Inc. reported second-quarter fiscal 2026 results that exceeded Wall Street expectations for earnings per share but fell short on full-year earnings guidance, leading to a more than 5% decline in share price during intra-day trading [1] Financial Performance - Earnings per share for the quarter were $0.04, surpassing consensus estimates of $0.02 [1] - Revenue for the quarter was $1.33 billion, slightly above the forecast of $1.31 billion, but represented a 5% decline year over year, or a 6% decline on a currency-neutral basis [1] - Gross margin decreased by 250 basis points to 47.3%, impacted by supply chain costs, higher tariffs, and an unfavorable product and regional mix [2] - Adjusted operating income, excluding transformation and restructuring expenses, was reported at $53 million [2] Future Guidance - For fiscal 2026, Under Armour projected earnings per share between $0.03 and $0.05, which is below the consensus estimate of $0.06 [3] - The company expects revenue to decline by 4% to 5%, with high-single-digit sales declines anticipated in North America and Asia-Pacific, partially offset by similar growth in EMEA [3] - Gross margin is expected to contract by 190 to 210 basis points, primarily due to increased U.S. tariffs, although favorable pricing and currency effects may mitigate some of the downside [3]

Revenue Performance - Total net revenues decreased by 4.7% compared to the same period last year[174] - Wholesale revenue decreased by 6.2%, while direct-to-consumer revenue decreased by 2.2%[174] - Apparel revenue decreased by 1.1%, footwear revenue decreased by 15.7%, and accessories revenue decreased by 2.8%[174] - Net revenues for the three months ended September 30, 2025, decreased by $65.6 million, or 4.7%, to $1.33 billion compared to $1.40 billion in the same period of 2024[180] - Net sales decreased by $63.1 million, or 4.6%, to $1.31 billion during the three months ended September 30, 2025, primarily due to lower average selling prices and unfavorable channel mix[181] - For the six months ended September 30, 2025, net revenues decreased by $115.2 million, or 4.5%, to $2.47 billion compared to $2.58 billion in the same period of 2024[180] - North America net revenue decreased by 8.3%, while EMEA increased by 12.2%[174] - North America net revenues decreased by $71.8 million or 8.3% during the three months ended September 30, 2025[211] - EMEA net revenues increased by $34.5 million or 12.2% during the three months ended September 30, 2025[214] - Asia-Pacific net revenues decreased by $28.5 million or 13.7% during the three months ended September 30, 2025[216] - Latin America net revenues increased by $6.9 million or 14.6% during the three months ended September 30, 2025[218] - Corporate Other net revenues decreased by $6.7 million during the three months ended September 30, 2025, primarily due to foreign currency hedge losses[220] Profitability and Expenses - Gross margin decreased by 250 basis points to 47.3%[174] - Gross profit decreased by $65.5 million to $630.6 million during the three months ended September 30, 2025, with a gross margin decline to 47.3% from 49.8%[187] - Gross profit for the six months ended September 30, 2025, decreased by $81.7 million to $1.18 billion, with a gross margin decline to 47.7% from 48.7%[188] - Selling, general and administrative expenses increased by 11.9%[174] - Selling, general and administrative expenses increased by $61.8 million, or 11.9%, to $581.6 million during the three months ended September 30, 2025, representing 43.6% of net revenues[192] - Selling, general and administrative expenses decreased by $245.2 million, or 18.1%, during the six months ended September 30, 2025, representing 45.1% of net revenues[192] - Restructuring charges increased significantly by 893.3% to $31.9 million during the three months ended September 30, 2025, compared to $3.2 million in the same period of 2024[194] - Marketing and advertising costs increased by $28.4 million or 22.6%, rising to 11.5% of net revenues from 9.0%[195] - Other costs increased by $33.4 million or 8.5%, rising to 32.1% of net revenues from 28.2%[195] Financial Position and Cash Flow - Cash and cash equivalents as of September 30, 2025, were approximately $396 million[235] - Net cash used in operating activities was $(20,978) million for the six months ended September 30, 2025, a decrease of $147.4 million compared to the previous year[245] - Total capital expenditures during the six months ended September 30, 2025, were $55.9 million, representing a $35.7 million decrease from the previous year[247] - The company repurchased $25 million of Class C Common Stock during the three months ended September 30, 2025, totaling 5.2 million shares[241] - Approximately $650 million of additional current and prior foreign earnings were repatriated, including a $250 million cash dividend in Fiscal 2026[238] - The company has a share repurchase program authorized for up to $500 million through May 31, 2027, with approximately $385 million remaining[243] - Cash flows from financing activities increased by $689.9 million, primarily due to the issuance of $400 million in Senior Notes due 2030 and $200 million in borrowings under the revolving credit facility[248] - The company repurchased $25 million of Class C Common Stock during the six months ended September 30, 2025, compared to $40 million repurchased in the same period of 2024[248] - As of September 30, 2025, there was a total of $200 million outstanding under the revolving credit facility, with no amounts outstanding as of March 31, 2025[251] Debt and Financing - The company issued $400 million in Senior Notes due 2030, bearing interest at a fixed rate of 7.25% per annum, payable semi-annually starting January 15, 2026[262] - The company satisfied and discharged the Senior Notes due 2026 using net proceeds from the Senior Notes due 2030, along with borrowings and cash on hand[260] - The company is required to maintain a consolidated EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.0[256] - As of September 30, 2025, the company was in compliance with all applicable covenants under the amended credit agreement[256] - The amended credit agreement provides for $1.1 billion in revolving credit commitments, expiring on June 16, 2030, with a springing maturity of 91 days prior if Senior Notes due 2030 are not refinanced[250] - The amended credit agreement contains negative covenants that limit the company's ability to incur additional indebtedness and engage in certain transactions[255] - The company has $45.6 million of letters of credit outstanding as of September 30, 2025[253] Strategic Initiatives - The 2025 restructuring plan is expected to incur up to $160 million in pre-tax charges, including $90 million in cash-related charges[173] - Estimated negative impact of approximately $100 million to cost of goods sold in Fiscal 2026 due to increased tariffs, affecting gross profit by approximately 200 basis points[176] - The company plans to enhance consumer engagement through a digital strategy aimed at long-term growth[172] - The company is actively monitoring macroeconomic factors, including inflation and foreign currency fluctuations, that may impact financial results[177] Income and Tax - Interest expense, net increased by $6.9 million to $8.6 million during the three months ended September 30, 2025, primarily due to the issuance of Senior Notes due 2030[200] - Income tax expense increased by $28.1 million to $25.9 million during the three months ended September 30, 2025, with an effective tax rate of 345.9%[205]

Core Insights - Under Armour, Inc. (UAA) reported second-quarter fiscal 2026 results with both revenue and earnings exceeding Zacks Consensus Estimates, although both metrics decreased year over year [1][3][10] - Management noted positive brand momentum in North America, indicating progress in the company's turnaround strategy [1] Financial Performance - Adjusted earnings were four cents per share, surpassing the consensus estimate of three cents, but down from 30 cents per share in the prior year [3] - Net revenues reached $1,333.4 million, exceeding the consensus estimate of $1,308 million, but down 5% year over year, with a 6% decline on a currency-neutral basis [3] - Wholesale revenues fell 6.2% to $775.1 million, while direct-to-consumer revenues dipped 2.2% to $538.1 million [4] Revenue Breakdown - Apparel revenues decreased 1.1% to $936.5 million, exceeding the consensus estimate of $907 million [5] - Footwear revenues dropped 15.7% to $263.6 million, missing the consensus estimate of $267 million [5] - International revenues rose 2% to $551 million, with EMEA revenues increasing 12.2% to $317.7 million [6][7] Margin Analysis - Gross profit was $630.6 million, down 9.4% year over year, with gross margin contracting 250 basis points to 47.3% [8] - Adjusted selling, general and administrative expenses grew 9% to $577.2 million, excluding transformation costs [9] Future Outlook - For fiscal 2026, revenues are projected to decline 4-5%, with significant decreases expected in North America and Asia-Pacific [15] - Gross margin is anticipated to contract by 190-210 basis points due to elevated tariffs and unfavorable regional mix [15] - Operating income is forecasted between $19-$34 million, with adjusted operating income estimated at $90-$105 million [17]

Under Armour swung to a fiscal second-quarter loss as sales of its sportswear fell, a trend it warned is likely to continue during the balance of its fiscal year, as it struggles to regain a foothold in the key North America market https://t.co/9a3EpKkhTC ...

分组1 - Under Armour reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, compared to earnings of $0.3 per share a year ago, representing an earnings surprise of +33.33% [1] - The company posted revenues of $1.33 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.98%, although this is a decrease from year-ago revenues of $1.4 billion [2] - Under Armour has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed, losing about 44.3% since the beginning of the year, while the S&P 500 has gained 15.6% [3] - The current consensus EPS estimate for the coming quarter is $0.05 on revenues of $1.33 billion, and for the current fiscal year, it is $0.06 on revenues of $4.94 billion [7] - The Zacks Industry Rank for Textile - Apparel is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Revenue Performance - Revenue decreased 5 percent to $1.3 billion, with North American revenue declining 8 percent to $792 million and international revenue growing 2 percent to $551 million[3] - Net revenues for the three months ended September 30, 2025, were $1,333,380, a decrease of 4.7% compared to $1,399,023 in the same period of 2024[17] - North America segment revenues decreased by 8.3% to $791,502 for the three months ended September 30, 2025, compared to $863,345 in 2024[17] - EMEA segment revenues increased by 12.2% to $317,679 for the three months ended September 30, 2025, compared to $283,178 in 2024[17] - Total net revenue growth (decline) for the six months ended September 30, 2025, was (4.5)%, with a currency-neutral net revenue decline of (5.2)%[29] Profitability Metrics - Gross margin declined by 250 basis points to 47.3 percent, primarily due to supply chain headwinds and increased tariffs[3] - Gross profit for the three months ended September 30, 2025, was $630,584, representing 47.3% of net revenues, down from 49.8% in 2024[17] - Operating income was $17 million, while adjusted operating income, excluding transformation expenses and restructuring charges, was $53 million[3] - Projected operating income for fiscal 2026 is expected to range from $19 million to $34 million, with adjusted operating income forecasted between $90 million and $105 million[7] - Adjusted income from operations for the six months ended September 30, 2025, was $77,806 thousand, compared to $174,077 thousand for the same period in 2024[33] Net Income and Loss - Net loss was $19 million, with adjusted net income reported at $15 million[3] - Net income for the three months ended September 30, 2025, was a loss of $18,814, compared to a net income of $170,382 in 2024[17] - For the six months ended September 30, 2025, the net income was $(21,426) thousand, compared to $(135,044) thousand for the same period in 2024, indicating an improvement[27] - The company reported an adjusted net income of $23,854 thousand for the six months ended September 30, 2025, compared to $134,770 thousand for the same period in 2024[35] Expenses - Selling, general, and administrative (SG&A) expenses increased 12 percent to $582 million, with adjusted SG&A expenses rising 9 percent to $577 million[3] - The company reported a restructuring charge of $31,906 for the three months ended September 30, 2025, compared to $3,212 in 2024[17] - Adjusted selling, general and administrative expenses for the six months ended September 30, 2025, were $1,099,274 thousand, compared to $1,084,730 thousand for the same period in 2024[31] Cash Flow and Financial Position - Cash and cash equivalents totaled $396 million, with inventory declining 6 percent to $1.0 billion[6] - Total current assets increased to $2,943,783 as of September 30, 2025, from $2,329,097 as of March 31, 2025[25] - Total liabilities rose to $3,043,800 as of September 30, 2025, compared to $2,410,593 as of March 31, 2025[25] - Cash flows from operating activities for the six months ended September 30, 2025, were $(20,978) thousand, an improvement from $(168,409) thousand in the same period of 2024[27] - Net cash provided by financing activities for the six months ended September 30, 2025, was $560,462 thousand, compared to $(129,392) thousand for the same period in 2024[27] Shareholder Actions and Future Outlook - The company repurchased $25 million of its Class C common stock, retiring 5.2 million shares as part of a $500 million share buyback program[4] - Fiscal 2026 outlook projects revenue to decrease 4 to 5 percent, with anticipated declines in North America and Asia-Pacific, and a high-single-digit percentage increase in EMEA[7] - Expected gross margin decline of 190 to 210 basis points, mainly due to higher U.S. tariffs and unfavorable channel mix[7] - The outlook for the year ending March 31, 2026, estimates adjusted income from operations to be between $90 million and $105 million[40] - The adjusted diluted net income per share for the year ending March 31, 2026, is projected to be between $0.03 and $0.05[41] Operational Metrics - The company maintained a total of 447 doors as of September 30, 2025, compared to 446 doors as of September 30, 2024[43] - Direct-to-consumer revenues decreased by 2.2% to $538,136 for the three months ended September 30, 2025, compared to $550,336 in 2024[19]

Core Insights - Under Armour reported its unaudited financial results for Q2 of fiscal 2026, showing a revenue decline of 5% to $1.3 billion, with a 6% decrease on a currency-neutral basis [9][14] - The company is experiencing brand momentum in North America, which is seen as a positive sign for its turnaround strategy [2][5] - The restructuring plan initiated in May 2024 has led to significant charges, with $147 million incurred so far, including $103 million in restructuring and impairment charges [5][10] Financial Performance - Revenue decreased by 5% to $1.3 billion, with North American revenue down 8% to $792 million, while international revenue grew 2% to $551 million [9][14] - Gross margin declined by 250 basis points to 47.3%, primarily due to supply chain challenges and increased tariffs [9][12] - Selling, general, and administrative (SG&A) expenses rose by 12% to $582 million, with adjusted SG&A expenses increasing by 9% to $577 million [9][21] Share Buyback and Cash Management - Under Armour repurchased $25 million of its Class C common stock in Q2, retiring 5.2 million shares, totaling 18 million shares repurchased for $115 million under a $500 million program [4][10] - Cash and cash equivalents stood at $396 million, with the company using proceeds from issuing Senior Notes to discharge $600 million in Senior Notes due 2026 [9][16] Outlook for Fiscal 2026 - The company expects revenue to decrease by 4% to 5%, with anticipated declines in North America and Asia-Pacific, but a slight increase in EMEA [10][19] - Gross margin is projected to decline by 190 to 210 basis points, mainly due to higher U.S. tariffs [10][19] - SG&A expenses are expected to decrease by a mid-teens percentage rate, with adjusted SG&A projected to decline at a mid-single-digit rate [10][19]

Core Insights - Under Armour, Inc. announced the appointment of Reza Taleghani as Executive Vice President and Chief Financial Officer, effective February 2026, succeeding David Bergman, who will remain with the company until the end of Q1 fiscal 2027 for a smooth transition [1][2]. Group 1: Leadership Transition - David Bergman has been with Under Armour for 21 years and has played a crucial role in the company's success and resilience [2]. - Reza Taleghani brings over 25 years of global financial and operational leadership experience, previously serving as EVP and CFO at Samsonite Group S.A. [3][4]. - Taleghani expressed enthusiasm about joining Under Armour at a pivotal moment, emphasizing the company's strong foundation and focus on performance and innovation [2][3]. Group 2: Reza Taleghani's Background - At Samsonite, Taleghani oversaw global finance, accounting, investor relations, treasury, internal audit, and mergers and acquisitions, leading to record gross and EBITDA margins [3]. - Prior to Samsonite, he held senior roles at Brightstar Corp. and spent over 15 years at J.P. Morgan in various financial sectors [4]. - Taleghani holds a JD/MBA from Villanova University and dual bachelor's degrees from Brown University [4]. Group 3: Company Overview - Under Armour, headquartered in Baltimore, Maryland, is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories [5]. - The company aims to empower human performance through innovative products designed to enhance athletic capabilities [5].

Core Viewpoint - Analysts forecast a significant decline in Under Armour's quarterly earnings and revenues, indicating ongoing challenges for the company in the current market environment [1][2]. Financial Projections - Expected earnings per share (EPS) for Under Armour is $0.02, reflecting a year-over-year decline of 93.3% [1]. - Anticipated revenues are projected at $1.31 billion, down 6.7% compared to the same quarter last year [1]. Earnings Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised downward by 4.3%, indicating a reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions and short-term stock price movements [3]. Revenue Breakdown by Product - Apparel revenues are estimated at $906.68 million, showing a decrease of 4.3% year-over-year [4]. - Footwear revenues are projected at $267.49 million, down 14.5% from the prior year [5]. - Accessories revenues are expected to be $108.58 million, reflecting a decline of 6.7% [5]. - Total net sales are estimated at $1.28 billion, indicating a decrease of 6.8% [5]. Regional Revenue Estimates - North America revenues are expected to reach $774.76 million, down 10.3% year-over-year [6]. - Asia-Pacific revenues are projected at $180.85 million, reflecting a decline of 12.9% [6]. - EMEA revenues are forecasted to be $303.60 million, showing an increase of 7.2% [7]. - Latin America revenues are expected at $46.10 million, down 1.8% [7]. Store Count Projections - Total doors are estimated to be 444, slightly down from 446 in the same quarter last year [7]. - International total doors count is projected at 249, compared to 250 a year ago [8]. - North America total doors count is expected to be 195, down from 196 in the previous year [8]. Stock Performance - Under Armour shares have declined by 7.6% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [8].

Core Viewpoint - Under Armour, Inc. is undergoing a brand and product reset due to soft consumer demand and is facing significant tariff-related cost pressures in fiscal 2026, which may adversely impact earnings [1][2]. Group 1: Company Challenges - The company is implementing a product overhaul in response to weak consumer confidence, increased competition, and rising tariff-driven costs [2]. - Under Armour has reduced promotions, streamlined SKUs, cut expenses, and hired new talent, but demand has not significantly improved [2]. Group 2: Financial Projections - Analyst Cristina Fernández estimates an EPS of 2 cents for the second quarter, aligning with FactSet consensus and guidance of 1 to 2 cents, with projected sales contracting by 6.5% [4]. - For fiscal 2026, Fernández forecasts an EPS of 6 cents, slightly above the 5-cent FactSet view, with revenue expected to decline by 4.3% [4]. Group 3: Upcoming Focus Areas - The upcoming second-quarter call is expected to address direct-to-consumer and wholesale demand, updated net tariff cost estimates, and consumer responses to new products [3]. - Additional details sought include promotional levels, holiday plans, wholesale order books for spring and summer 2026, and guidance for the third quarter with updated commentary on fiscal 2026 [3].