Core Viewpoint - Under Armour (UAA) has experienced significant selling pressure, resulting in an 18.6% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating potential for recovery [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - UAA's current RSI reading is 24.76, suggesting that the heavy selling may be exhausting itself, which could lead to a price rebound as the stock seeks to return to its previous equilibrium [5]. Group 2: Fundamental Analysis - There has been a strong consensus among sell-side analysts to raise earnings estimates for UAA, with a 12.5% increase in the consensus EPS estimate over the last 30 days, indicating potential price appreciation in the near term [6]. - UAA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [7].

Core Viewpoint - Under Armour (UAA) has experienced significant selling pressure, resulting in an 18.4% stock price decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - UAA's current RSI reading is 27.24, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for UAA, leading to a 12.9% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - UAA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7].

现代时尚相信"设计应为大规模生产而生"，相信形式需服务于功能，相信衣食住行终将塑造每一个个体。无论时代如何更迭，The New Look 所承载的全球化气象与 积极向上的象征意义从未消散。 因此，我们决定把一档新栏目的名字定为「 New Look」，这会是一档关注时尚行业的访谈，在这里你会看到服饰巨头、运动新秀、奢侈品大牌、设计师新品牌的领 导人物如何思考生意、品牌、中国市场和消费者，洞悉"流行"究竟怎样发生，以及它们最终如何成为经典。 作者 | 贺哲馨 编辑 | 乔芊 22岁的凯文·普朗克（Kevin Plank）发明第一件贴身速干衣的时候，还没有人用"细分市场冠军"来赞美新来者的奇袭。普朗克为了说服商标局的工作人员 接受Under Armour这个名称都费尽心思，仅仅是因为无人理解"在运动外衣里穿一件内搭"的逻辑在哪里。 一开始，普朗克只在自己的橄榄球运动员圈子推广这件产品，这些人都是他从高中到大学时期就认识的运动员，普朗克告诉他们，如果喜欢就把速干衣送 给他们的队友，接着是篮球和曲棍球，"球员们的妻子和女友"也开始人手一件。一传十十传百，安德玛的"天使用户"就这样形成了。直到今天，普朗克都 坚持认为安德 ...

Valuation and Market Performance - Under Armour, Inc. (UAA) is currently trading at a low price-to-sales (P/S) multiple of 0.60X, significantly below the industry average of 2.22X and the sector average of 1.84X [1][3] - In the past month, UAA stock has declined by 14.2%, compared to a 5.2% decline in the industry, contributing to its undervaluation and making it appealing for investors [4] Strategic Transformation and Loyalty Program - Under Armour has transformed its direct-to-consumer (DTC) business by focusing on full-price sales and reducing promotions, which has improved average unit retail and order values [6] - The company's loyalty program has added 4 million new members in Q3 of fiscal 2025, bringing the total to 17 million in North America, enhancing repurchase rates and brand engagement [7] Gross Margin Improvement - Under Armour achieved a 240-basis-point improvement in gross margin, reaching 47.5%, driven by reduced discounting, lower product and freight costs, and favorable currency fluctuations [9] - The company has revised its full-year gross margin outlook upward by 160 basis points, indicating strong pricing power and brand resilience [11] Marketing Strategy and International Expansion - Under Armour's marketing strategy has evolved to focus on grassroots programs and influencer collaborations, with a $500-million marketing budget aimed at engaging young athletes [12] - The company is refining its international strategies, particularly in EMEA and Asia-Pacific, to drive long-term growth and stabilize its market presence [13] Financial Outlook - Under Armour has adjusted its fiscal 2025 guidance, projecting a low-single-digit percentage decrease in adjusted selling, general and administrative expenses and an increase in adjusted operating income to between $185 million and $195 million [14][15] - The adjusted earnings per share forecast has been raised to a range of 28-30 cents, reflecting the company's commitment to cost discipline and operational efficiency [15] Analyst Sentiment - Analysts have positively revised their earnings estimates for Under Armour, with the consensus estimate for the current fiscal year increased to 30 cents per share [16]

Core Insights - Under Armour, Inc. reported third-quarter fiscal 2025 results with revenues and earnings exceeding the Zacks Consensus Estimate, although both metrics decreased year over year [1][3] - The company has refined its brand focus and updated its product strategy, which has positively impacted performance and led to an improved fiscal 2025 outlook [1] Financial Performance - Adjusted earnings were 8 cents per share, surpassing the Zacks Consensus Estimate of 3 cents, but down from 19 cents in the prior year [3] - Net revenues reached $1,401 million, exceeding the consensus estimate of $1,338 million, but decreased by 5.7% year over year [3] - Wholesale revenues fell 1% to $704.8 million, while direct-to-consumer revenues declined 9.1% to $672.9 million [4] Revenue Breakdown - Apparel revenues decreased 5% to $966.1 million, exceeding the consensus estimate of $909.2 million [5] - Footwear revenues dropped 9% to $301.2 million, below the consensus estimate of $303.6 million [5] - Revenues from Accessories rose 5.7% to $110.4 million, outperforming the consensus estimate of $98 million [5] Geographic Performance - North America revenues declined 7.8% to $843.6 million, exceeding the Zacks Consensus Estimate of $790.7 million [6] - International revenues decreased 1.4% to $558 million, with EMEA revenues increasing 4.9% to $297.9 million [7][6] Margin and Expenses - Gross profit was $665.2 million, down 0.8% year over year, but gross margin expanded 240 basis points to 47.5% [8] - Adjusted selling, general, and administrative expenses rose 5% to $605.5 million, primarily due to higher marketing expenses [9] Financial Position - The company ended the quarter with cash and cash equivalents of $726.9 million and long-term debt of $595.2 million [10] - Under Armour repurchased $25 million worth of its class C common stock, retiring 2.8 million shares [11] Fiscal 2025 Outlook - Revenues are expected to decline 10%, an improvement from the previous forecast of a low-double-digit percentage decline [14] - Adjusted operating income is projected between $185 million and $195 million, an increase from the earlier estimate [17] - Loss per share is expected between 48 cents and 50 cents, with adjusted earnings per share forecasted between 28 cents and 30 cents [18]

Revenue Performance - Total net revenues decreased by 5.7% compared to the same period last year[175] - Wholesale revenue decreased by 1.0%, while direct-to-consumer revenue decreased by 9.1%[175] - Apparel revenue decreased by 5.0%, footwear revenue decreased by 9.0%, and accessories revenue increased by 5.7%[175] - Net revenues decreased by $85.0 million, or 5.7%, to $1,401.0 million for the three months ended December 31, 2024, compared to $1,486.0 million for the same period in 2023[183] - For the nine months ended December 31, 2024, net revenues decreased by $385.9 million, or 8.8%, to $3,983.7 million compared to $4,369.7 million in the same period in 2023[183] - Total net revenues decreased by $385.96 million, or 8.8%, to $3,983.73 million for the nine months ended December 31, 2024, compared to $4,369.68 million in 2023[217] - The decrease in net sales was attributed to both wholesale and direct-to-consumer channels[185] - North America net revenue decreased by 7.8%, while EMEA increased by 4.9%[175] - North America net revenues decreased by $71.7 million, or 7.8%, to $843.6 million, attributed to declines in both direct-to-consumer and licensing revenues[215] - EMEA region net revenues increased by $13.8 million, or 4.9%, to $297.9 million, supported by growth in both wholesale and direct-to-consumer channels[215] - Asia-Pacific net revenues decreased by $55.71 million, or 8.6%, to $590.61 million, impacted by lower sales in both wholesale and direct-to-consumer channels[220] Financial Metrics - Gross margin increased by 240 basis points to 47.5%[175] - Gross profit decreased by $5.5 million to $665.2 million during the three months ended December 31, 2024, with a gross margin increase to 47.5% from 45.1%[190] - Gross profit for the nine months ended December 31, 2024, decreased by $106.7 million to $1,924.0 million, with a gross margin increase to 48.3% from 46.5%[191] - Total operating income decreased by $57.9 million, or 81.1%, to $13.5 million for the three months ended December 31, 2024, compared to the same period in 2023[216] - Other expense, net increased by $50.5 million to $2.6 million during the three months ended December 31, 2024, primarily due to an earn-out related to the sale of MyFitnessPal[206] - Income tax expense decreased by $2.3 million to $6.3 million for the three months ended December 31, 2024, with an effective tax rate of 83.3% compared to 7.2% in the prior year[208] Expenses and Costs - Selling, general and administrative expenses increased by 6.4%[175] - Selling, general and administrative expenses increased by $38.5 million, or 6.4%, to $637.7 million for the three months ended December 31, 2024, as a percentage of net revenues increased to 45.5% from 40.3%[194][197] - Selling, general and administrative expenses increased by $197.5 million, or 11.0%, during the nine months ended December 31, 2024, with a percentage of net revenues rising to 50.1% from 41.1%[197] - License revenues decreased by $5.2 million, or 17.8%, to $23.9 million during the three months ended December 31, 2024, primarily due to lower revenues from licensing partners in North America[186] - Marketing costs decreased by $31.1 million, or 7.1%, but as a percentage of net revenues, they increased to 10.2% from 10.0%[202] - Other costs increased by $228.6 million, or 16.8%, primarily due to higher litigation expenses and an impairment charge of $28.4 million[202] - Interest expense, net increased by $3.2 million to $3.4 million during the three months ended December 31, 2024, primarily due to a decrease in interest income[203] Restructuring and Future Plans - The 2025 restructuring plan was approved with an estimated total cost of $140 million to $160 million[176] - Total costs recorded in restructuring charges for the three months ended December 31, 2024, amounted to $17.764 million[176] - Up to $75 million in cash-related charges are anticipated as part of the restructuring plan, including $30 million in employee severance costs[179] - Restructuring charges increased by $13.9 million, or 100.0%, to $13.9 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to employee-related, facility-related, and other restructuring charges[199] - The company expects trends in gross margin improvements to continue through the remainder of Fiscal 2025, albeit to a lesser extent[192] Cash Flow and Capital Expenditures - Net cash provided by operating activities decreased by $334.0 million to $142.9 million for the nine months ended December 31, 2024, compared to $476.9 million in 2023[233] - Cash flows used in investing activities increased by $27.7 million to $(99.2) million, primarily due to higher capital expenditures and acquisitions[235] - Total capital expenditures for the nine months ended December 31, 2024, were $139.9 million, representing approximately 4% of net revenues, an increase of $23.3 million from $116.5 million in 2023[236] - Cash flows used in financing activities increased by $79.5 million to $(154.5) million, including $80.9 million for repaying Convertible Senior Notes and $65.0 million for share repurchases[237] Liquidity and Financing - As of December 31, 2024, the company had approximately $726.9 million in cash and cash equivalents, sufficient to meet liquidity needs for at least the next twelve months[224] - The company authorized a share repurchase program of up to $500 million, with $65 million already repurchased as of December 31, 2024[229][232] - The company plans to continue reinvesting its non-U.S. subsidiaries' cumulative undistributed earnings of $1.5 billion to fund international growth and operations[226] - The company has a revolving credit facility of $1.1 billion, with no amounts outstanding as of December 31, 2024[238] - As of December 31, 2024, $45.9 million of letters of credit were outstanding under the amended credit agreement[240] - The company repaid $80.9 million of Convertible Senior Notes upon maturity on June 1, 2024, using cash on hand[246] - The company issued $600.0 million of 3.25% senior unsecured notes due June 15, 2026, with interest payable semi-annually[247] - The amended credit agreement requires maintaining a consolidated EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.0[243] - The company incurred capital expenditures of $88.5 million related to the construction of its new global headquarters, designed with sustainability features[236]

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]

Core Insights - Under Armour reported $1.4 billion in revenue for the quarter ended December 2024, reflecting a year-over-year decline of 5.7% and an EPS of $0.08 compared to $0.19 a year ago, with a revenue surprise of +4.73% over the Zacks Consensus Estimate of $1.34 billion and an EPS surprise of +166.67% over the consensus estimate of $0.03 [1] Revenue Performance - Total revenue from North America was $843.62 million, exceeding the average estimate of $790.73 million, but representing a -7.8% change year-over-year [4] - Asia-Pacific revenues were $201.11 million, surpassing the average estimate of $195.51 million, with a year-over-year decline of -5.1% [4] - EMEA revenues reached $297.89 million, above the average estimate of $289.50 million, showing a +4.9% year-over-year increase [4] - Latin America revenues were $58.99 million, below the average estimate of $68.39 million, reflecting a -15.5% year-over-year change [4] Product Revenue Breakdown - Apparel revenues totaled $966.07 million, exceeding the average estimate of $909.22 million, with a year-over-year decline of -5% [4] - Footwear revenues were $301.21 million, slightly below the average estimate of $303.58 million, showing a -9% year-over-year change [4] - License revenues were $23.90 million, significantly below the average estimate of $45.29 million, with a year-over-year decline of -17.8% [4] - Accessories revenues reached $110.43 million, surpassing the average estimate of $97.97 million, reflecting a +5.7% year-over-year increase [4] Distribution Channel Performance - Wholesale revenues were $704.76 million, exceeding the average estimate of $631.75 million, with a -1% year-over-year change [4] - Direct to Consumer revenues were $672.95 million, slightly below the average estimate of $681.15 million, showing a -9.1% year-over-year decline [4] Stock Performance - Under Armour shares returned +1.9% over the past month, compared to the Zacks S&P 500 composite's +2.1% change, with a current Zacks Rank of 3 (Hold), indicating potential performance in line with the broader market [3]

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]