Core Insights - Under Armour reported revenue of $1.13 billion for the quarter ended June 2025, a decrease of 4.2% year-over-year, with an EPS of $0.02 compared to $0.01 in the same quarter last year [1] - The revenue matched the Zacks Consensus Estimate, indicating a surprise of +0.2%, while the EPS fell short of expectations by 33.33% [1] Revenue Performance - Total revenue from North America was $670.32 million, below the average estimate of $675.6 million, reflecting a year-over-year decline of 5.5% [4] - Asia-Pacific revenues were reported at $163.39 million, exceeding estimates of $153.59 million, but still down 10.2% year-over-year [4] - Latin America generated $54.58 million, below the average estimate of $57.58 million, marking a 15.3% decline year-over-year [4] - EMEA revenues reached $248.61 million, slightly above the estimate of $244.35 million, showing a year-over-year increase of 9.6% [4] Product Revenue Breakdown - Apparel sales were $746.59 million, surpassing the estimate of $729.4 million, but down 1.5% year-over-year [4] - Footwear revenue was $265.86 million, significantly below the estimate of $286.42 million, representing a 14.4% decline [4] - Accessories generated $100.08 million, exceeding the estimate of $92.39 million, with an 8.1% year-over-year increase [4] - License revenues were reported at $24.36 million, above the estimate of $21.59 million, reflecting a 12.4% increase year-over-year [4] Distribution Channel Performance - Wholesale revenues were $649.05 million, below the average estimate of $663.75 million, indicating a 4.6% decline year-over-year [4] - Direct to Consumer revenues reached $463.48 million, exceeding the estimate of $444.5 million, but down 3.5% year-over-year [4] Stock Performance - Under Armour's stock has returned -6.2% over the past month, contrasting with the S&P 500 composite's +1.9% change, and currently holds a Zacks Rank 4 (Sell) [3]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Under Armour's unaudited condensed consolidated financial statements, including balance sheets, income, comprehensive income, equity, and cash flows, with detailed notes for recent periods [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | | :----- | :--------------------------- | :---------------------------- | | Total Assets | $4,865,191 | $4,300,871 | | Total Liabilities | $2,990,762 | $2,410,593 | | Total Stockholders' Equity | $1,874,429 | $1,890,278 | | Cash and Cash Equivalents | $910,985 | $501,361 | | Inventories | $1,141,829 | $945,836 | | Current Maturities of Long-Term Debt | $599,757 | $0 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (%) | | :----- | :---------------------------------------------- | :---------------------------------------------- | :--------- | | Net Revenues | $1,134,068 | $1,183,665 | -4.2% | | Gross Profit | $546,496 | $562,675 | -2.9% | | Income (Loss) from Operations | $3,323 | $(299,728) | +101.1% | | Net Income (Loss) | $(2,612) | $(305,426) | +99.1% | | Basic Net Income (Loss) per Share | $(0.01) | $(0.70) | +98.6% | | Diluted Net Income (Loss) per Share | $(0.01) | $(0.70) | +98.6% | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----- | :---------------------------------------------- | :---------------------------------------------- | | Net Income (Loss) | $(2,612) | $(305,426) | | Foreign Currency Translation Adjustment | $29,536 | $(16,563) | | Unrealized Gain (Loss) on Cash Flow Hedges, net of tax | $(48,911) | $17,616 | | Total Other Comprehensive Income (Loss) | $(18,523) | $289 | | Comprehensive Income (Loss) | $(21,135) | $(305,137) | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) | Metric | Balance as of March 31, 2025 (in thousands) | Balance as of June 30, 2025 (in thousands) | | :----- | :------------------------------------------ | :----------------------------------------- | | Total Stockholders' Equity | $1,890,278 | $1,874,429 | | Retained Earnings | $746,277 | $736,180 | | Accumulated Other Comprehensive Income (Loss) | $(93,938) | $(112,461) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | | :----- | :---------------------------------------------- | :---------------------------------------------- | :--------- | | Net Cash Provided by (Used in) Operating Activities | $48,852 | $152,975 | $(104,123) | | Net Cash Provided by (Used in) Investing Activities | $(35,362) | $4,319 | $(39,681) | | Net Cash Provided by (Used in) Financing Activities | $387,303 | $(128,220) | $515,523 | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $410,107 | $26,244 | $383,863 | | Cash, Cash Equivalents and Restricted Cash, End of Period | $925,158 | $903,161 | $21,997 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Detailed disclosures for condensed consolidated financial statements, covering business operations, accounting policies, and key financial components [Note 1. Description of Business and Basis of Presentation](index=10&type=section&id=Note%201.%20Description%20of%20Business%20and%20Basis%20of%20Presentation) - Under Armour, Inc. develops, markets, and distributes branded athletic performance apparel, footwear, and accessories globally, aiming to inspire athletes with innovative performance and design solutions[26](index=26&type=chunk) [Note 2. Recent Accounting Pronouncements](index=10&type=section&id=Note%202.%20Recent%20Accounting%20Pronouncements) - The company is evaluating ASU 2024-03 (Disaggregation of Income Statement Expenses), effective for annual periods after December 15, 2026, and ASU 2023-09 (Improvements to Income Tax Disclosures), effective for fiscal years after December 15, 2024, which is expected to expand disclosures but not materially impact financial statements[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 3. Property and Equipment](index=11&type=section&id=Note%203.%20Property%20and%20Equipment) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | | :----- | :--------------------------- | :---------------------------- | | Property and Equipment, net | $613,174 | $645,147 | | Accumulated Depreciation | $(1,071,207) | $(1,123,776) | - Depreciation expense for property and equipment was **$28.6 million** for the three months ended June 30, 2025, a decrease from **$32.5 million** in the prior year period[36](index=36&type=chunk) [Note 4. Leases](index=11&type=section&id=Note%204.%20Leases) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----- | :---------------------------------------------- | :---------------------------------------------- | | Operating Lease Costs | $41,035 | $37,793 | | Variable Lease Costs | $18,289 | $21,501 | | Sublease Income | $3,400 | $1,000 | - As of June 30, 2025, the weighted average remaining lease term was **7.04 years** with a weighted average discount rate of **4.81%**[40](index=40&type=chunk) [Note 5. Goodwill](index=13&type=section&id=Note%205.%20Goodwill) | Segment | Balance as of March 31, 2025 (in thousands) | Effect of Currency Translation Adjustment (in thousands) | Balance as of June 30, 2025 (in thousands) | | :------ | :------------------------------------------ | :------------------------------------------------------- | :----------------------------------------- | | North America | $309,487 | $0 | $309,487 | | EMEA | $103,055 | $7,400 | $110,455 | | Asia-Pacific | $75,090 | $1,163 | $76,253 | | Total | $487,632 | $8,563 | $496,195 | [Note 6. Supply Chain Finance Program](index=15&type=section&id=Note%206.%20Supply%20Chain%20Finance%20Program) - Outstanding payment obligations under the supply chain finance program increased to **$245.7 million** as of June 30, 2025, from **$143.8 million** as of March 31, 2025[47](index=47&type=chunk) [Note 7. Credit Facility and Other Long Term Debt](index=15&type=section&id=Note%207.%20Credit%20Facility%20and%20Other%20Long%20Term%20Debt) | Debt Instrument | As of June 30, 2025 (in thousands) | As of March 31, 2025 (in thousands) | | :-------------- | :--------------------------------- | :---------------------------------- | | 3.25% Senior Notes due 2026 | $600,000 | $600,000 | | 7.25% Senior Notes due 2030 | $400,000 | $0 | | Total Principal Payments Due | $1,000,000 | $600,000 | | Non-current Portion of Long-Term Debt | $389,457 | $595,125 | | Current Portion of Long-Term Debt | $599,757 | $0 | - The company issued **$400.0 million** of 7.25% Senior Notes due July 15, 2030, and intends to use the proceeds, along with other funds, to redeem or retire 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) - The revolving credit facility was amended in June 2025, providing **$1.1 billion** in commitments that has a term ending on June 16, 2030, with no amounts outstanding as of June 30, 2025[49](index=49&type=chunk) [Note 8. Commitments and Contingencies](index=18&type=section&id=Note%208.%20Commitments%20and%20Contingencies) - A proposed settlement for the Consolidated Kenney Derivative Action and Consolidated Paul Derivative Action was reached, including corporate governance measures for three years and an **$8.9 million** payment to the company, funded by insurance proceeds[73](index=73&type=chunk) - The company is in litigation with certain insurance carriers regarding coverage for a previously settled Consolidated Securities Action, with **$90 million** of insurance proceeds recognized as of June 30, 2025, remaining subject to the appeal[85](index=85&type=chunk) [Note 9. Stockholders' Equity](index=22&type=section&id=Note%209.%20Stockholders'%20Equity) - Kevin Plank, the founder, President, and CEO, maintains majority voting control through Class B Convertible Common Stock (10 votes per share), while Class A has one vote per share and Class C has no voting rights (except in limited circumstances)[87](index=87&type=chunk)[88](index=88&type=chunk) - The Board authorized a **$500 million** share repurchase program for Class C Common Stock through May 31, 2027. As of the reporting date, **$90 million** (12.8 million shares) has been repurchased, with **$410 million** remaining. No repurchases occurred in Q1 Fiscal 2026[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [Note 10. Revenues](index=23&type=section&id=Note%2010.%20Revenues) | Revenue Category | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (%) | | :--------------- | :---------------------------------------------- | :---------------------------------------------- | :--------- | | Apparel | $746,592 | $757,792 | -1.5% | | Footwear | $265,855 | $310,389 | -14.3% | | Accessories | $100,078 | $92,545 | +8.1% | | Net Sales | $1,112,525 | $1,160,726 | -4.2% | | License Revenues | $24,362 | $21,671 | +12.4% | | Total Net Revenues | $1,134,068 | $1,183,665 | -4.2% | | Distribution Channel | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (%) | | :------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------- | | Wholesale | $649,050 | $680,513 | -4.6% | | Direct-to-Consumer | $463,475 | $480,213 | -3.5% | [Note 11. Restructuring and Related Charges](index=24&type=section&id=Note%2011.%20Restructuring%20and%20Related%20Charges) - The 2025 restructuring plan is expected to incur **$140 million to $160 million** in pre-tax charges, with **$90 million** cash-related and **$70 million** non-cash, substantially complete by end of Fiscal 2026[98](index=98&type=chunk) | Restructuring Costs | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Estimated Charges Remaining (in thousands) | | :------------------ | :---------------------------------------------- | :---------------------------------------------- | :----------------------------------------- | | Total costs recorded in restructuring charges | $12,828 | $25,086 | $30,203 | | Total costs recorded in SG&A | $8,259 | $8,657 | $19,548 | | Total restructuring and related charges | $21,087 | $33,743 | $49,751 | [Note 12. Stock-Based Compensation](index=26&type=section&id=Note%2012.%20Stock-Based%20Compensation) - Total stock-based compensation expense for employees and non-employee directors was **$10.7 million** for Q1 Fiscal 2026, down from **$14.4 million** in Q1 Fiscal 2025. Unrecognized expense is **$89.1 million** over **2.45 years**[103](index=103&type=chunk) - Awards to marketing and other partners resulted in **$1.8 million** in stock-based compensation expense for Q1 Fiscal 2026, with **$63.0 million** unrecognized expense over **9.14 years**[109](index=109&type=chunk) | Stock Options Activity | Number of Stock Options | Weighted Average Exercise Price | | :--------------------- | :---------------------- | :------------------------------ | | Outstanding at March 31, 2025 | 1,356 | $16.68 | | Granted | 150 | $6.20 | | Outstanding at June 30, 2025 | 1,506 | $15.63 | [Note 13. Fair Value Measurements](index=28&type=section&id=Note%2013.%20Fair%20Value%20Measurements) | Financial Instrument | June 30, 2025 (Level 2, in thousands) | March 31, 2025 (Level 2, in thousands) | | :------------------- | :------------------------------------ | :------------------------------------- | | Derivative foreign currency contracts | $(63,482) | $192 | | Deferred Compensation Plan obligations | $(17,775) | $(16,830) | | TOLI policies held by Rabbi Trust | $9,610 | $8,726 | - The estimated fair value of long-term debt as of June 30, 2025, was **$998.1 million**, compared to **$583.9 million** as of March 31, 2025, classified as Level 2[120](index=120&type=chunk) [Note 14. Risk Management and Derivatives](index=30&type=section&id=Note%2014.%20Risk%20Management%20and%20Derivatives) - The aggregate notional value of outstanding cash flow hedges was **$1,365.5 million** as of June 30, 2025, up from **$1,113.6 million** as of March 31, 2025, with maturities ranging from one to twenty-four months[129](index=129&type=chunk) - The total notional value of outstanding undesignated derivative instruments was **$514.5 million** as of June 30, 2025, compared to **$450.7 million** as of March 31, 2025[133](index=133&type=chunk) [Note 15. Provision for Income Taxes](index=33&type=section&id=Note%2015.%20Provision%20for%20Income%20Taxes) - The effective income tax rate increased significantly to **49.0%** for the three months ended June 30, 2025, from **(1.7)%** for the same period in 2024, primarily due to changes in actual and forecasted annual pre-tax earnings[136](index=136&type=chunk) - The company is assessing the impact of the recently enacted OBBBA (One Big Beautiful Bill Act) on U.S. taxation of foreign earnings, bonus depreciation, and research expensing[137](index=137&type=chunk) [Note 16. Earnings Per Share](index=34&type=section&id=Note%2016.%20Earnings%20Per%20Share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | | Basic Net Income (Loss) per Share | $(0.01) | $(0.70) | | Diluted Net Income (Loss) per Share | $(0.01) | $(0.70) | | Weighted Average Common Shares Outstanding (Basic) | 427,116 | 435,693 | [Note 17. Segment Data](index=34&type=section&id=Note%2017.%20Segment%20Data) - The company's operating segments are North America, EMEA, Asia-Pacific, and Latin America, with operating income (loss) used by the CODM for resource allocation[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) | Segment | Net Revenues (Q2 2025, in thousands) | Net Revenues (Q2 2024, in thousands) | Operating Income (Loss) (Q2 2025, in thousands) | Operating Income (Loss) (Q2 2024, in thousands) | | :------ | :----------------------------------- | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | North America | $670,319 | $709,260 | $121,437 | $147,889 | | EMEA | $248,607 | $226,892 | $39,643 | $20,456 | | Asia-Pacific | $163,386 | $181,836 | $14,703 | $9,935 | | Latin America | $54,575 | $64,409 | $6,606 | $15,171 | | Corporate Other | $(2,819) | $1,268 | $(179,066) | $(493,179) | | Total | $1,134,068 | $1,183,665 | $3,323 | $(299,728) | [Item 2. 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) Management's analysis of financial condition, operations, and liquidity for Q1 Fiscal 2026, discussing key metrics, strategies, and macroeconomic factors [FORWARD LOOKING STATEMENTS](index=37&type=section&id=FORWARD%20LOOKING%20STATEMENTS) - Forward-looking statements cover topics such as share repurchase programs, future financial condition, growth strategies, restructuring efforts, promotional activities, freight, product cost pressures, foreign currency impacts, global economic conditions, and litigation[150](index=150&type=chunk) - Key risk factors include changes in economic/market conditions, global events (e.g., military conflicts, trade policy), increased competition, raw material costs, execution of long-term strategies, customer financial health, product development, inventory management, loss of key partners, global expansion, brand image, significant transactions, talent retention, regulatory compliance, data security, public health emergencies, and litigation[151](index=151&type=chunk)[155](index=155&type=chunk) [OVERVIEW](index=38&type=section&id=OVERVIEW) - Under Armour is focused on driving premium brand-right growth and improved profitability through increased sales in apparel, footwear, and accessories, growth in direct-to-consumer, and expansion of wholesale distribution[154](index=154&type=chunk) - Challenging market conditions persisted in Q1 Fiscal 2026, particularly in North America and Asia-Pacific, due to lower consumer demand across both wholesale and direct-to-consumer channels[155](index=155&type=chunk) - The 2025 restructuring plan, expected to be substantially complete by end of Fiscal 2026, aims to strengthen financial and operational efficiencies with estimated pre-tax charges of **$140 million to $160 million**[157](index=157&type=chunk) - Macroeconomic factors, including global trade policy changes, inflationary pressures, and foreign currency fluctuations, are expected to negatively impact Fiscal 2026 results, with an anticipated **$100 million** impact on cost of goods sold from incremental tariffs[159](index=159&type=chunk)[160](index=160&type=chunk) [RESULTS OF OPERATIONS](index=40&type=section&id=RESULTS%20OF%20OPERATIONS) Analysis of Q1 Fiscal 2026 financial performance, detailing changes in net revenues, gross profit, operating expenses, and net income (loss) [Revenues](index=40&type=section&id=Revenues) | Revenue Category | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | Change (%) | | :--------------- | :---------------------------------------------- | :---------------------------------------------- | :--------- | :--------- | | Total Net Revenues | $1,134,068 | $1,183,665 | $(49,597) | -4.2% | | Net Sales | $1,112,525 | $1,160,726 | $(48,201) | -4.2% | | License Revenues | $24,362 | $21,671 | $2,691 | +12.4% | - Apparel net sales decreased **1.5%** due to lower average selling prices and unfavorable channel mix, while footwear decreased **14.3%** due to lower unit sales and prices. Accessories increased **8.1%** due to higher unit sales[165](index=165&type=chunk) [Gross Profit](index=42&type=section&id=Gross%20Profit) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | Gross Margin (%) 2025 | Gross Margin (%) 2024 | | :----- | :---------------------------------------------- | :---------------------------------------------- | :--------- | :-------------------- | :-------------------- | | Gross Profit | $546,496 | $562,675 | $(16,179) | 48.2% | 47.5% | - Gross margin increased by **70 basis points** to **48.2%**, primarily driven by favorable foreign exchange (**55 bps**), product mix (**30 bps**), and pricing benefits (**30 bps**), partially offset by unfavorable channel mix (**30 bps**) and supply chain (**15 bps**)[169](index=169&type=chunk) [Selling, General and Administrative Expenses](index=42&type=section&id=Selling,%20General%20and%20Administrative%20Expenses) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | Change (%) | SG&A as % of Net Revenues 2025 | SG&A as % of Net Revenues 2024 | | :----- | :---------------------------------------------- | :---------------------------------------------- | :--------- | :--------- | :----------------------------- | :----------------------------- | | Selling, General and Administrative Expenses | $530,345 | $837,317 | $(306,972) | -36.7% | 46.8% | 70.7% | - The decrease in SG&A was primarily due to a **$296.4 million (41.4%)** reduction in "other costs" (mainly lower litigation reserve expense in the prior year) and a **$10.6 million (8.7%)** decrease in marketing and advertising costs[171](index=171&type=chunk) [Restructuring Charges](index=43&type=section&id=Restructuring%20Charges) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | Change (%) | | :----- | :---------------------------------------------- | :---------------------------------------------- | :--------- | :--------- | | Restructuring Charges | $12,828 | $25,086 | $(12,258) | -48.9% | [Interest Income (Expense), net](index=43&type=section&id=Interest%20Income%20(Expense),%20net) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | Change (%) | | :----- | :---------------------------------------------- | :---------------------------------------------- | :--------- | :--------- | | Interest Income (Expense), net | $(4,051) | $2,344 | $(6,395) | -272.8% | [Other Income (Expense), net](index=43&type=section&id=Other%20Income%20(Expense),%20net) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | Change (%) | | :----- | :---------------------------------------------- | :---------------------------------------------- | :--------- | :--------- | | Other Income (Expense), net | $(4,695) | $(2,730) | $(1,965) | -72.0% | [Income Tax Expense (Benefit)](index=43&type=section&id=Income%20Tax%20Expense%20(Benefit)) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | Change (%) | Effective Tax Rate 2025 | Effective Tax Rate 2024 | | :----- | :---------------------------------------------- | :---------------------------------------------- | :--------- | :--------- | :---------------------- | :---------------------- | | Income Tax Expense (Benefit) | $(2,658) | $5,149 | $(7,807) | -151.6% | 49.0% | -1.7% | [SEGMENT RESULTS OF OPERATIONS](index=44&type=section&id=SEGMENT%20RESULTS%20OF%20OPERATIONS) Analysis of net revenues and operating income (loss) across geographic segments and Corporate Other, highlighting regional performance drivers [Net Revenues](index=44&type=section&id=Net%20Revenues) | Segment | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | Change (%) | | :------ | :---------------------------------------------- | :---------------------------------------------- | :--------- | :--------- | | North America | $670,319 | $709,260 | $(38,941) | -5.5% | | EMEA | $248,607 | $226,892 | $21,715 | +9.6% | | Asia-Pacific | $163,386 | $181,836 | $(18,450) | -10.1% | | Latin America | $54,575 | $64,409 | $(9,834) | -15.3% | | Corporate Other | $(2,819) | $1,268 | $(4,087) | -322.3% | | Total Net Revenues | $1,134,068 | $1,183,665 | $(49,597) | -4.2% | - North America revenues decreased **5.5%** due to declines in wholesale and direct-to-consumer. EMEA revenues increased **9.6%** driven by wholesale and owned/operated retail stores, positively impacted by foreign exchange. Asia-Pacific revenues decreased **10.1%** due to wholesale and e-commerce declines. Latin America revenues decreased **15.3%** primarily due to negative foreign exchange impacts[184](index=184&type=chunk) [Operating Income (Loss)](index=46&type=section&id=Operating%20Income%20(Loss)) | Segment | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | Change (%) | | :------ | :---------------------------------------------- | :---------------------------------------------- | :--------- | :--------- | | North America | $121,437 | $147,889 | $(26,452) | -17.9% | | EMEA | $39,643 | $20,456 | $19,187 | +93.8% | | Asia-Pacific | $14,703 | $9,935 | $4,768 | +48.0% | | Latin America | $6,606 | $15,171 | $(8,565) | -56.5% | | Corporate Other | $(179,066) | $(493,179) | $314,113 | +63.7% | | Total Operating Income (Loss) | $3,323 | $(299,728) | $303,051 | +101.1% | - Corporate Other operating loss decreased by **$314.1 million (63.7%)** primarily due to lower net litigation expense in the prior year. EMEA operating income increased **93.8%** due to lower marketing and facility expenses and higher gross profit. North America operating income decreased **17.9%** due to lower gross profit and higher marketing/distribution costs[187](index=187&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=46&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Discussion of cash requirements, funding sources, and capital structure, including cash, share repurchases, cash flow, credit facility, and senior notes - As of June 30, 2025, the company had **$911 million** in cash and cash equivalents and believes its current liquidity sources are adequate for at least the next twelve months[188](index=188&type=chunk) - The company plans to use proceeds from the **$400 million** Senior Notes due 2030, credit facility borrowings, and cash on hand to retire the **$600 million** Senior Notes due 2026 in Q2 Fiscal 2026[188](index=188&type=chunk) [Share Repurchase Program](index=47&type=section&id=Share%20Repurchase%20Program) - The Board authorized a **$500 million** share repurchase program for Class C Common Stock through May 31, 2027. No shares were repurchased in Q1 Fiscal 2026, leaving **$410 million** remaining[191](index=191&type=chunk)[192](index=192&type=chunk) [Cash Flows](index=48&type=section&id=Cash%20Flows) | Cash Flow Activity | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change ($) | | :----------------- | :---------------------------------------------- | :---------------------------------------------- | :--------- | | Operating Activities | $48,852 | $152,975 | $(104,123) | | Investing Activities | $(35,362) | $4,319 | $(39,681) | | Financing Activities | $387,303 | $(128,220) | $515,523 | - Operating cash flows decreased by **$104.1 million**, primarily due to a **$366.4 million** decrease from changes in working capital, partially offset by a **$262.2 million** increase in net income before non-cash items[194](index=194&type=chunk) - Financing cash flows increased by **$515.5 million**, primarily due to the issuance of **$400 million** Senior Notes due 2030[196](index=196&type=chunk) [Capital Resources](index=48&type=section&id=Capital%20Resources) - The amended credit agreement provides **$1.1 billion** in revolving credit commitments until June 16, 2030, with no amounts outstanding as of June 30, 2025. The company was in compliance with all covenants[199](index=199&type=chunk)[204](index=204&type=chunk) - The company issued **$400.0 million** of 7.25% Senior Notes due 2030, intending to use the proceeds to redeem or retire the **$600.0 million** 3.25% Senior Notes due 2026 in Q2 Fiscal 2026[207](index=207&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk) [CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS](index=51&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES%20AND%20ASSUMPTIONS) - Financial statements rely on complex judgments, probabilities, and assumptions that are inherently uncertain, and actual results could differ significantly from these estimates[212](index=212&type=chunk) [Item 3. 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 since March 31, 2025, with further discussion available in the Annual Report on Form 10-K - No significant changes to market risk have occurred since March 31, 2025[214](index=214&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective due to a material weakness in internal control over financial reporting, with remediation efforts ongoing [Evaluation of Disclosure Controls and Procedures](index=51&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The CEO and CFO concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness in internal control over financial reporting[215](index=215&type=chunk) [Material Weakness in Internal Control Over Financial Reporting](index=52&type=section&id=Material%20Weakness%20in%20Internal%20Control%20Over%20Financial%20Reporting) - A material weakness exists in internal control over financial reporting due to ineffective controls over the review and execution of certain balance sheet account reconciliations, which resulted in immaterial errors in prior financial statements[216](index=216&type=chunk) [Remediation Efforts and Status of Remaining Material Weakness](index=52&type=section&id=Remediation%20Efforts%20and%20Status%20of%20Remaining%20Material%20Weakness) - Remediation efforts include developing a new account reconciliation policy, designing and enhancing controls, and engaging third-party consultants, with completion expected throughout Fiscal 2026[217](index=217&type=chunk)[219](index=219&type=chunk) [Changes in Internal Control Over Financial Reporting](index=52&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, other than ongoing remediation efforts for the identified material weakness[218](index=218&type=chunk) [PART II - OTHER INFORMATION](index=53&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from Note 8 to the Condensed Consolidated Financial Statements - Information on legal proceedings is incorporated by reference from Note 8 to the Condensed Consolidated Financial Statements[221](index=221&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) Refers to risk factors in the Annual Report on Form 10-K for Fiscal 2025, noting potential impact from additional unknown or immaterial risks - Readers should consider risk factors from the Annual Report on Form 10-K for Fiscal 2025, as additional unknown or currently immaterial risks could negatively impact the business[222](index=222&type=chunk) [Item 2. 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 repurchases of Class C Common Stock occurred under the authorized share repurchase program during the three months ended June 30, 2025 | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program | Approximately Dollar Value of Shares that May Yet be Purchased Under the Program (in millions) | | :----- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------- | :------------------------------------------------------------------------------------------- | | 04/01/2025 to 04/30/2025 | — | $— | — | $410.0 | | 05/01/2025 to 05/31/2025 | — | $— | — | $410.0 | | 06/01/2025 to 06/30/2025 | — | $— | — | $410.0 | [Item 5. 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 Q1 Fiscal 2026 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[225](index=225&type=chunk) [Item 6. Exhibits](index=54&type=section&id=Item%206.%20Exhibits) Lists exhibits filed as part of the Form 10-Q, including indentures, credit agreement amendments, and certifications - Exhibits include Indentures for Senior Notes, Amendment No. 7 and 8 to the Amended and Restated Credit Agreement, and Section 302 and 906 certifications[226](index=226&type=chunk) [SIGNATURES](index=55&type=section&id=SIGNATURES) - The report was duly signed on behalf of Under Armour, Inc. by David E. Bergman, Chief Financial Officer, on August 8, 2025[229](index=229&type=chunk)

Group 1: Earnings Performance - Under Armour reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.03 per share, representing an earnings surprise of -33.33% [1] - The company posted revenues of $1.13 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.20%, but down from $1.18 billion year-over-year [2] - Over the last four quarters, Under Armour has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Under Armour shares have lost about 19.8% since the beginning of the year, while the S&P 500 has gained 7.8% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $0.26 on $1.36 billion in revenues for the coming quarter and $0.33 on $5.06 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Textile - Apparel industry, to which Under Armour belongs, is currently in the bottom 23% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Under Armour's stock performance [5]

Under Armour forecast worse-than-expected sales for the current quarter, stalling a turnaround plan that was taking hold https://t.co/OmOpQueKtR ...

[Executive Summary & Strategic Overview](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Overview) [Company Overview & Strategic Direction](index=1&type=section&id=Company%20Overview%20%26%20Strategic%20Direction) Under Armour is executing a strategic transformation to enhance brand credibility, innovation, and operational discipline - Under Armour is undergoing a bold transformation to sharpen its brand, emphasizing sports credibility, innovation, style, and operational discipline[2](index=2&type=chunk) - Strategic focus includes strengthening brand positioning with premium products, increasing average selling prices through innovative offerings, optimizing top-volume programs, and creating a more compelling full price-to-value proposition[2](index=2&type=chunk) [First Quarter Fiscal 2026 Financial Review](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Financial%20Review) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) The company's Q1 FY26 revenue declined while gross margin improved, resulting in a significantly reduced net loss compared to the prior year Q1 Fiscal 2026 Key Financial Highlights | Metric | Q1 FY26 (2025) | Q1 FY25 (2024) | Change (YoY) | | :-------------------------------- | :------------- | :------------- | :----------- | | Revenue | $1.1 billion | $1.18 billion | -4% (-4% currency neutral) | | Gross Margin | 48.2% | 47.5% | +70 bps | | Operating Income (GAAP) | $3 million | $(299.7) million | N/A | | Net Loss (GAAP) | $3 million | $(305.4) million | N/A | | Adjusted Net Income | $9 million | $3.7 million | N/A | | Diluted Loss Per Share (GAAP) | $(0.01) | $(0.70) | N/A | | Adjusted Diluted Earnings Per Share | $0.02 | $0.01 | N/A | - Gross margin increase was primarily due to favorable foreign exchange, pricing, and product mix, partially offset by an unfavorable channel mix and higher supply chain costs[3](index=3&type=chunk) [Revenue Breakdown](index=1&type=section&id=Revenue%20Breakdown) Q1 FY26 revenue declined across most segments and channels, with footwear showing the most significant drop [Revenue by Geographic Segment](index=1&type=section&id=Revenue%20by%20Geographic%20Segment) North America and Asia-Pacific revenues declined, while the EMEA region was the only segment to report growth Q1 Fiscal 2026 Revenue by Geographic Segment | Segment | Revenue (2025, in millions) | % Change (YoY) | Currency Neutral % Change (YoY) | | :-------------- | :-------------------------- | :-------------- | :------------------------------ | | North America | $670 | -5% | -5.3% | | International | $467 | -1% | -2.2% | | EMEA | $248.6 | +10% | +6.0% | | Asia-Pacific | $163.4 | -10% | -10.3% | | Latin America | $54.6 | -15% | -7.7% | [Revenue by Distribution Channel](index=1&type=section&id=Revenue%20by%20Distribution%20Channel) Both wholesale and direct-to-consumer channels experienced revenue declines, with a notable drop in eCommerce sales Q1 Fiscal 2026 Revenue by Distribution Channel | Channel | Revenue (2025, in millions) | % Change (YoY) | | :---------------- | :-------------------------- | :-------------- | | Wholesale | $649 | -5% | | Direct-to-consumer | $463 | -3% | | Owned & Operated Stores | N/A | +1% | | eCommerce | N/A | -12% | - eCommerce revenue accounted for **31%** of the total direct-to-consumer business for the quarter[3](index=3&type=chunk) [Revenue by Product Category](index=1&type=section&id=Revenue%20by%20Product%20Category) Footwear revenue declined significantly and apparel saw a slight decrease, while accessories revenue grew Q1 Fiscal 2026 Revenue by Product Category | Product Category | Revenue (2025, in millions) | % Change (YoY) | | :--------------- | :-------------------------- | :-------------- | | Apparel | $747 | -1% | | Footwear | $266 | -14% | | Accessories | $100 | +8% | [Operating Income by Segment](index=7&type=section&id=Operating%20Income%20by%20Segment) Operating income decreased in North America and Latin America but improved in the EMEA and Asia-Pacific segments Q1 Fiscal 2026 Operating Income by Segment | Segment | Operating Income (2025, in thousands) | % of Net Revenues (2025) | Operating Income (2024, in thousands) | % of Net Revenues (2024) | | :-------------- | :------------------------------------ | :----------------------- | :------------------------------------ | :----------------------- | | North America | $121,437 | 18.1% | $147,889 | 20.9% | | EMEA | $39,643 | 15.9% | $20,456 | 9.0% | | Asia-Pacific | $14,703 | 9.0% | $9,935 | 5.5% | | Latin America | $6,606 | 12.1% | $15,171 | 23.6% | [Non-GAAP Adjustments & Reconciliations (Q1 FY26)](index=11&type=section&id=Non-GAAP%20Adjustments%20%26%20Reconciliations%20(Q1%20FY26)) Adjusted financial measures for Q1 FY26 exclude restructuring charges and litigation reserves to clarify core operational performance Q1 Fiscal 2026 Adjusted Financial Metrics | Metric | GAAP (2025, in thousands) | Adjusted (2025, in thousands) | GAAP (2024, in thousands) | Adjusted (2024, in thousands) | | :-------------------------------------- | :------------------------ | :-------------------------- | :------------------------ | :-------------------------- | | Selling, General & Administrative Expenses | $530,345 | $522,086 | $837,317 | $554,660 | | Operating Income (Loss) | $3,323 | $24,410 | $(299,728) | $8,015 | | Net Income (Loss) | $(2,612) | $8,568 | $(305,426) | $3,656 | | Diluted EPS | $(0.01) | $0.02 | $(0.70) | $0.01 | [Fiscal 2025 Restructuring Plan](index=2&type=section&id=Fiscal%202025%20Restructuring%20Plan) [Restructuring Plan Details](index=2&type=section&id=Restructuring%20Plan%20Details) The company initiated a restructuring plan to improve efficiencies, with total estimated costs between $140 million and $160 million - Restructuring plan announced in May 2024 aims to improve financial and operational efficiencies[4](index=4&type=chunk) - Estimated total cost of the plan is between **$140 million and $160 million**, with up to **$90 million** cash-related and **$70 million** non-cash charges[4](index=4&type=chunk) - As of Q1 FY26, **$110 million** in charges have been recorded, with **$65 million** cash-related and **$45 million** non-cash-related[4](index=4&type=chunk) - Remaining charges are anticipated to be recognized 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) [Financial Projections](index=2&type=section&id=Financial%20Projections) The Q2 FY26 outlook projects a revenue decline and significant gross margin compression, leading to a potential operating loss - Revenue is expected to decline **6-7%** in Q2 FY26[6](index=6&type=chunk) - North America revenue is anticipated to decrease by a **low-double-digit percentage**, while EMEA is projected to grow at a **high-single-digit rate**, and Asia-Pacific to decline by a **low-teens percentage**[6](index=6&type=chunk) - Gross margin is expected to decline **340-360 basis points**, mainly due to supply chain headwinds and unfavorable channel mix[6](index=6&type=chunk) - Operating income is expected to range from a **$10 million loss to $0 million**, with adjusted operating income forecasted between **$30 million and $40 million**[6](index=6&type=chunk) - Diluted loss per share is expected to range from **$0.07 to $0.08**, with adjusted diluted earnings per share anticipated between **$0.01 and $0.02**[6](index=6&type=chunk) [Non-GAAP Adjustments & Reconciliations (Q2 FY26 Outlook)](index=13&type=section&id=Non-GAAP%20Adjustments%20%26%20Reconciliations%20(Q2%20FY26%20Outlook)) The Q2 FY26 outlook is adjusted for restructuring charges to provide a clearer view of expected core operating performance Q2 Fiscal 2026 Adjusted Outlook | Metric | GAAP Low Estimate | GAAP High Estimate | Adjusted Low Estimate | Adjusted High Estimate | | :-------------------------- | :---------------- | :----------------- | :-------------------- | :--------------------- | | Operating Income (Loss) | $(10) million | $0 million | $30 million | $40 million | | Diluted Loss Per Share | $(0.08) | $(0.07) | $0.01 | $0.02 | [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Q1 FY26 statement of operations shows a significantly narrowed net loss compared to the prior year, driven by lower SG&A expenses Condensed Consolidated Statements of Operations (Unaudited; in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net revenues | $1,134,068 | $1,183,665 | | Cost of goods sold | $587,572 | $620,990 | | Gross profit | $546,496 | $562,675 | | Selling, general and administrative expenses | $530,345 | $837,317 | | Restructuring charges | $12,828 | $25,086 | | 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) Total assets and liabilities increased as of June 30, 2025, primarily due to higher cash, inventories, and new debt maturities Condensed Consolidated Balance Sheets (Unaudited; in thousands) | Metric | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------ | :------------- | | Total assets | $4,865,191 | $4,300,871 | | Cash and cash equivalents | $910,985 | $501,361 | | Inventories | $1,141,829 | $945,836 | | Total liabilities | $2,990,762 | $2,410,593 | | Current maturities of long-term debt | $599,757 | $0 | | 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) Cash from operations decreased, but a significant inflow from financing activities led to a substantial increase in total cash Condensed Consolidated Statements of Cash Flows (Unaudited; in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by (used in) operating activities | $48,852 | $152,975 | | Net cash provided by (used in) investing activities | $(35,362) | $4,319 | | Net cash provided by (used in) financing activities | $387,303 | $(128,220) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $410,107 | $26,244 | | Cash, cash equivalents and restricted cash (End of period) | $925,158 | $903,161 | - Proceeds from long-term debt and revolving credit facility totaled **$400 million** in Q1 FY26[26](index=26&type=chunk) [Supplemental Information](index=3&type=section&id=Supplemental%20Information) [Non-GAAP Financial Information (General Explanation)](index=3&type=section&id=Non-GAAP%20Financial%20Information%20(General%20Explanation)) The company utilizes non-GAAP measures to exclude currency fluctuations and restructuring charges for a clearer view of operational performance - Non-GAAP measures like 'currency-neutral' and 'adjusted' results are used to provide valuable information for comparing operational results across different periods[8](index=8&type=chunk) - Currency-neutral data eliminates fluctuations in foreign currency exchange rates, while adjusted measures exclude effects of the fiscal year 2025 restructuring plan and associated charges[8](index=8&type=chunk) [Forward-Looking Statements & Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) The report's forward-looking statements are subject to risks including economic conditions, competition, and supply chain issues - Forward-looking statements relate to expectations, beliefs, projections, plans, and strategies concerning matters that are not historical facts[10](index=10&type=chunk) - Actual activities or results may differ significantly due to risks, uncertainties, assumptions, and changes in circumstances[10](index=10&type=chunk) - Important factors that could cause material differences include changes in economic/market conditions, global events, trade environment, increased competition, fluctuations in raw material costs, ability to execute strategies, and impacts from litigation[11](index=11&type=chunk) [Company-Owned & Operated Door Count](index=14&type=section&id=Company-Owned%20%26%20Operated%20Door%20Count) The total number of company-owned and operated doors remained stable year-over-year at 442 globally Company-Owned & Operated Door Count | Region/Type | June 30, 2025 | June 30, 2024 | | :------------------ | :------------ | :------------ | | North America total | 195 | 200 | | International total | 247 | 241 | | Total doors | 442 | 441 | [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) A conference call and webcast were held on August 8, 2025, to discuss the first quarter fiscal 2026 results - The conference call for Q1 FY26 results was held on August 8, 2025, at approximately 8:30 a.m. Eastern Time[7](index=7&type=chunk) - The call was streamed live and is available for replay on the company's investor relations website: https://about.underarmour.com/investor-relations/financials[7](index=7&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Contact details for investor relations inquiries are provided - Contact for Finance & Capital Markets: Lance Allega, Senior Vice President[12](index=12&type=chunk) - Contact Phone: (410) 246-6810[12](index=12&type=chunk) - Contact Email: LAllega@underarmour.com[12](index=12&type=chunk)

Core Insights - Under Armour reported its unaudited financial results for the first quarter of fiscal 2026, ending June 30, 2025, showing a revenue decline of 4.2% year-over-year to $1.134 billion [5][13][15]. Financial Performance - The company experienced a gross margin increase of 70 basis points to 48.2%, attributed to favorable foreign exchange, pricing, and product mix, despite higher supply chain costs [5][13]. - Selling, general, and administrative expenses decreased by 37% to $530 million, with adjusted expenses down 6% to $522 million, excluding transformation expenses [5][13]. - The net loss for the quarter was $3 million, with an adjusted net income of $9 million, leading to a diluted loss per share of $0.01 and adjusted diluted earnings per share of $0.02 [5][13][26][28]. Revenue Breakdown - North American revenue decreased by 5% to $670 million, while international revenue declined by 1% to $467 million [5][14]. - Within international markets, EMEA revenue increased by 10%, while Asia-Pacific and Latin America saw declines of 10% and 15%, respectively [5][14]. - Apparel revenue decreased by 1% to $747 million, footwear revenue fell by 14% to $266 million, and accessories revenue increased by 8% to $100 million [5][16]. Restructuring Plan - Under Armour's restructuring plan, initiated in May 2024, is expected to cost between $140 million and $160 million, with $71 million in restructuring and impairment charges recorded by the end of Q1 fiscal 2026 [4][5]. - The company anticipates recognizing the remaining charges by the end of fiscal 2026 [4]. Outlook - For the second quarter of fiscal 2026, revenue is expected to decline by 6% to 7%, with a projected low-double-digit percent decrease in North America and high-single-digit percent growth in EMEA [6][11]. - Gross margin is anticipated to decline by 340 to 360 basis points due to supply chain headwinds and an unfavorable channel mix [6][11]. Cash and Liquidity - Cash and cash equivalents totaled $911 million, including $400 million raised from senior notes during the quarter, which will be used to manage upcoming debt obligations [5][19]. Company Overview - Under Armour, Inc. is a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories, headquartered in Baltimore, Maryland [9].

Wall Street analysts forecast that Under Armour (UAA) will report quarterly earnings of $0.03 per share in its upcoming release, pointing to a year-over-year increase of 200%. It is anticipated that revenues will amount to $1.13 billion, exhibiting a decrease of 4.3% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timef ...

Company Overview - Under Armour (UAA) is expected to report a year-over-year increase in earnings of +200% with an EPS of $0.03, despite a revenue decline of 4.3% to $1.13 billion for the quarter ended June 2025 [3][12] - The earnings report is scheduled for release on August 8, and the actual results will significantly influence the stock price [2][3] Earnings Estimates and Trends - The consensus EPS estimate has been revised 0.76% lower over the last 30 days, indicating a reassessment by analysts [4] - Under Armour's Earnings ESP (Expected Surprise Prediction) stands at +13.79%, suggesting a more optimistic outlook from analysts compared to the consensus estimate [12] Historical Performance - In the last reported quarter, Under Armour had a surprise of +11.11%, posting a loss of -$0.08 per share against an expected loss of -$0.09 [13] - The company has beaten consensus EPS estimates in each of the last four quarters [14] Comparison with Industry Peers - In the Zacks Textile - Apparel industry, Ralph Lauren (RL) is expected to post earnings of $3.45 per share, reflecting a year-over-year increase of +27.8% and revenue growth of 8.8% to $1.65 billion [18][19] - Ralph Lauren's Earnings ESP is +0.75% with a Zacks Rank of 2 (Buy), indicating a strong likelihood of beating the consensus EPS estimate [20]

Core Viewpoint - Under Armour, Inc. is set to report its first quarter fiscal 2026 results on August 8, 2025, with a conference call scheduled to discuss the results and strategic progress [1]. Company Overview - Under Armour, Inc. is headquartered in Baltimore, Maryland, and is recognized as a leading inventor, marketer, and distributor of branded athletic performance apparel, footwear, and accessories [2]. - The company's products are designed to empower human performance, with a focus on innovation to enhance athletic capabilities [2].

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]