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

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

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

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

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

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

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

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

Core Viewpoint - Under Armour, Inc. is set to release its second quarter fiscal 2026 results on November 6, 2025, with a conference call scheduled for 8:30 a.m. ET to discuss the results [1]. Group 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 - Under Armour, Inc. (UAA) reported a decline in first-quarter fiscal 2026 results, primarily due to regional weaknesses and a challenging macroeconomic environment [1][9] - North America, the largest revenue contributor, experienced a 5.5% year-over-year decline, attributed to lower wholesale orders and weaker retail traffic [1][9] - Management anticipates continued pressure in the second quarter, forecasting a low double-digit revenue decline [2][6] Regional Performance - International revenues fell 1.4% year over year to $466.6 million, with EMEA showing a 9.6% increase while APAC and Latin America faced declines [3][4] - APAC revenues dropped 10%, reflecting weaker consumer confidence and a competitive retail environment [4] - Latin America saw a 15.3% revenue decline, partly due to foreign currency headwinds, with a currency-neutral decline of 8% [5] Strategic Focus - Under Armour's strategy in APAC emphasizes rebuilding premium positioning through tighter distribution and disciplined pricing [4] - The company aims to restore sustainable growth momentum in fiscal 2026 despite current challenges [4][6] - Management is focused on strengthening regional operations and improving long-term revenue quality [6] Financial Metrics - UAA shares have declined 29.8% over the past three months, compared to a 5.5% decline in the industry [7] - The company is trading at a forward 12-month price-to-sales ratio of 0.41X, significantly lower than the industry average of 1.50X [8] - The Zacks Consensus Estimate for fiscal 2026 earnings indicates an 83.9% year-over-year decline, while fiscal 2027 estimates suggest a 310.9% increase [11]