Financial Data and Key Metrics Changes - The third quarter revenue declined by 6% to $1.4 billion, which was better than the previously expected decline of approximately 10% [50] - Gross margin increased by 240 basis points year-over-year to 47.5%, driven by supply chain benefits and reduced discounting [55][56] - Adjusted diluted earnings per share was $0.08 for the quarter, while reported diluted earnings per share broke even [60] Business Line Data and Key Metrics Changes - Direct-to-consumer revenue declined by 9%, primarily due to a 20% decrease in eCommerce sales [53] - Apparel revenue was down 5%, while footwear declined by 9%, and accessories revenue increased by 6% [54] - The company is focusing on reducing SKUs across all assortments by 25% to enhance product presentation [19] Market Data and Key Metrics Changes - North America experienced an 8% revenue decline, mainly due to lower eCommerce sales [51] - EMEA revenue increased by 5%, while APAC revenue fell by 5% [51] - Latin America saw a revenue decline of 16%, primarily due to lower distributor sales [52] Company Strategy and Development Direction - The company is transitioning to a consumer-focused category management model to enhance accountability and performance [20][22] - A new marketing strategy aims to connect more authentically with young athletes, moving away from traditional performance marketing [24][35] - The company plans to centralize its marketing budget to fuel brand activation and improve engagement with athletes [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the brand's repositioning and the potential for improved growth trajectories in the long term [46][68] - The company is addressing challenges in the APAC region and is focused on stabilizing its trajectory there [44][93] - Management acknowledged that while the fourth quarter may face headwinds, there are signs of improvement in profitability and brand strength [66][67] Other Important Information - The company has gained 4 million new loyalty program members, raising the total to 17 million in North America [40] - A significant portion of the marketing budget will be redeployed to enhance brand activation and storytelling [34][105] - The company is committed to maintaining its premium positioning in the market while navigating competitive pressures [42] Q&A Session Questions and Answers Question: Can you elaborate on balancing storytelling while achieving more by doing less? - The company is focusing on a growth by constraint model, empowering teams to be agile and intentional in their product offerings [75] Question: What percentage of eCommerce is still on discounts? - The company has made progress in reducing discounts but still has work to do in this area [78] Question: Are you beginning to see results from brand strengthening strategies? - Management noted increased interest from retail partners and a growing sense of energy within the company [86] Question: What is the outlook for North America? - The company is optimistic about its position in North America and is focused on reducing promotions to unlock growth [98] Question: How is the North America reset working? - Management believes they are in a better position than in years past and are working towards growth [99]

Under Armour (UAA) reported $1.4 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 5.7%. EPS of $0.08 for the same period compares to $0.19 a year ago.The reported revenue represents a surprise of +4.73% over the Zacks Consensus Estimate of $1.34 billion. With the consensus EPS estimate being $0.03, the EPS surprise was +166.67%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Core Insights - Under Armour's shares increased by 5% following the release of its third-quarter sales and adjusted profit, which exceeded estimates [1][5] - The company reported third-quarter revenue of $1.40 billion, a 6% decline year-over-year, but above the Visible Alpha estimate of $1.34 billion [1] - Net income for the quarter was $1.2 million, falling short of the consensus estimate of $2.1 million [1] Financial Performance - Under Armour's adjusted profit was $0.08 per share, which was double the expectations after accounting for restructuring costs [2] - The company has revised its fiscal 2025 outlook, now expecting a per-share loss of $0.48 to $0.50, narrowed from a previous range of $0.48 to $0.51 [3] - Adjusted EPS is projected to be between $0.28 and $0.30, an increase from the prior estimate of $0.24 to $0.27 [3] - Revenue is anticipated to decline by about 10% year-over-year, an improvement from the earlier expectation of a low-double-digit percentage drop [3] Analyst Expectations - Prior to the earnings report, analysts had forecasted a full-year loss of $0.29 per share, adjusted EPS of $0.29, and a revenue decline of 10.6% [4]

Core Insights - Under Armour reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.19 per share a year ago, representing an earnings surprise of 166.67% [1] - The company achieved revenues of $1.4 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.73%, although this is a decrease from $1.49 billion in the same quarter last year [2] - Under Armour has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Under Armour's stock price movement will largely depend on management's commentary during the earnings call [3] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $1.17 billion, and for the current fiscal year, it is $0.27 on revenues of $5.09 billion [7] Industry Context - The Textile - Apparel industry, to which Under Armour belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - Revenue for Q3 Fiscal 2025 decreased by 6% to $1.4 billion, with North America revenue down 8% to $844 million and international revenue down 1% to $558 million[3]. - The company expects a revenue decline of approximately 10% for Fiscal 2025, with a projected 12-13% decline in North America[7]. - Net revenues for the three months ended December 31, 2024, were $1,401,039, a decrease of 5.7% compared to $1,486,043 in the same period of 2023[20]. - North America segment revenues decreased by 7.8% to $843,620 for the three months ended December 31, 2024, compared to $915,335 in 2023[20]. - Total net revenue for the nine months ended December 31, 2024, declined by 8.8% on a GAAP basis, with currency-neutral net revenue growth also declining by 8.7%[33]. - North America experienced a net revenue decline of 11.6% on a GAAP basis, with currency-neutral net revenue growth declining by 11.5%[33]. Profitability Metrics - Gross margin increased by 240 basis points to 47.5%, attributed to reduced direct-to-consumer discounting and lower product and freight costs[3]. - Operating income was reported at $14 million, with adjusted operating income at $60 million after excluding certain charges[3]. - Net income for the quarter was $1 million, while adjusted net income stood at $35 million[3]. - Gross profit for the three months ended December 31, 2024, was $665,155, representing 47.5% of net revenues, compared to $670,639 or 45.1% in 2023[20]. - The company reported a net income of $1,234 for the three months ended December 31, 2024, compared to a net income of $110,753 in 2023[20]. - Adjusted net income for the nine months ended December 31, 2024, was $169.77 million, compared to a GAAP net loss of $133.81 million[41]. Expenses and Costs - Selling, general, and administrative expenses rose by 6% to $638 million, primarily due to increased marketing investments[3]. - Selling, general and administrative expenses increased to $637,701, accounting for 45.5% of net revenues, up from 40.3% in the prior year[20]. Future Projections - Gross margin is anticipated to improve by approximately 160 basis points, driven by reduced discounting and lower costs[7]. - Operating loss for Fiscal 2025 is expected to be between $179 million and $189 million, with adjusted operating income projected at $185 million to $195 million[7]. - The company plans for a GAAP loss from operations in the fiscal year ending March 31, 2025, estimated between $179 million and $189 million[47]. - The adjusted diluted earnings per share for the fiscal year ending March 31, 2025, is projected to be between $0.28 and $0.30[48]. Cash Flow and Financial Position - The company's cash flows from operating activities generated $142.88 million, a decrease from $476.86 million in the prior year[30]. - Cash and cash equivalents decreased to $726,877 as of December 31, 2024, from $858,691 as of March 31, 2024[28]. - Under Armour's cash and cash equivalents decreased to $745.17 million from $1,057.22 million year-over-year[30]. - Total liabilities as of December 31, 2024, were $2,646,242, compared to $2,607,448 as of March 31, 2024[28]. Inventory and Receivables - Inventories increased to $1,100,530 as of December 31, 2024, compared to $958,495 as of March 31, 2024[28]. - The company reported a significant increase in accounts receivable, totaling $136.66 million, compared to $58.04 million in the previous year[30]. Shareholder Actions - Under Armour repurchased $25 million of Class C common stock, retiring 2.8 million shares as part of a $500 million share buyback program[4]. Direct-to-Consumer and Licensing Revenue - The company experienced a decline in direct-to-consumer revenues by 9.1% to $672,948 for the three months ended December 31, 2024[22]. - Licensing revenues decreased by 17.8% to $23,904 for the three months ended December 31, 2024, compared to $29,069 in 2023[22]. Store Count - Under Armour's total company-owned and operated doors decreased from 440 in December 2023 to 448 in December 2024, with North America total doors decreasing from 200 to 196[50].

BALTIMORE, Feb. 6, 2025 /PRNewswire/ -- Under Armour, Inc. (NYSE: UAA, UA) announced its unaudited financial results for the third quarter of the fiscal year 2025, which ended on December 31, 2024. The company reports its financial performance in accordance with accounting principles generally accepted in the United States ("GAAP"). This press release includes references to "currency neutral" and "adjusted" amounts, which are non-GAAP financial measures detailed in the "Non-GAAP Financial Information" secti ...

The consumer discretionary sector continues to be an attractive space for investors seeking growth opportunities. While companies in this category are sensitive to economic cycles, many have shown remarkable adaptability, innovation and a strong focus on customer engagement. Among the standouts, Under Armour, Inc. (UAA) shines with its strong brand presence and strategic growth initiatives.Under Armour’s Strategy for GrowthUnder Armour is strategically positioning itself for sustained growth by refining its ...

Strategic Focus - The company is focusing on premium product offerings, operational efficiency, and global expansion to drive growth and market differentiation [1] - Under Armour is refining core products, enhancing direct-to-consumer (DTC) channels, and strengthening customer loyalty through its membership program [1] - The company is leveraging athlete partnerships and data-driven marketing to elevate its global presence and competitive positioning [2] Product and Operational Strategy - Under Armour is investing $40 million in brand-building marketing efforts across the Americas, EMEA, and Asia-Pacific regions [5] - The company is simplifying its product line, reducing SKU complexity, and adopting a selective promotional approach to boost profitability [6] - Under Armour is targeting young athletes and team sports in the Americas, premium distribution in EMEA, and brand equity in the Asia-Pacific region [8] Global Expansion and E-Commerce - The company is expanding its international footprint with high-profile athlete endorsements, such as Stephen Curry in China and De'Aaron Fox's signature shoe launch [9] - Under Armour opened a 24,000-square-foot flagship store in Baltimore, offering a premium retail experience and setting a standard for future stores [10] - Full-price e-commerce sales now account for 50% of online revenues, up from 30% a year ago, with DTC sales increasing 7.6% year-over-year to $550.3 million in Q2 FY25 [11] Customer Loyalty and Membership Growth - The loyalty program has nearly 13 million members in the U.S. and 28 million globally, with 6 million new members added in Q2 FY25 [12] - Active members contribute to approximately 50% of U.S. DTC revenues, generating 50% more revenue per customer and nearly doubling the repurchase rate compared to non-members [12] Financial Performance and Outlook - Gross margin increased by 200 basis points to 49.8% in Q2 FY25, driven by reduced promotional activities, optimized product costs, and favorable channel mix [13] - Adjusted SG&A expenses decreased by 13% year-over-year to $530.1 million, aided by lower marketing expenses, headcount reductions, and insurance recovery [14] - The company expects a gross margin increase of 125-150 basis points for FY25, with adjusted SG&A expenses decreasing in the low to mid-single-digit percentage range [15] Industry Comparison - Under Armour's stock has gained 3.3% in the past six months, outperforming the Zacks Textile – Apparel industry's 4.2% decline [17] - Other top-ranked stocks in the industry include The Gap, Inc. (GAP), Abercrombie & Fitch Co. (ANF), and Deckers Outdoor Corporation (DECK) [18][19][20][21]

Under Armour (UAA) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since ...

Under Armour, Inc.’s (UAA) focus on premiumization, operational efficiency and global expansion is positioning it for sustained growth and market differentiation. The company’s emphasis on refining core product offerings, expanding its direct-to-consumer (DTC) channels, and strengthening brand loyalty through its membership program is fostering deeper consumer engagement and increasing revenue potential. Strong athlete partnerships and data-driven marketing efforts are enhancing Under Armour’s global presen ...